Amutse says selling EPLs deprives Namibia of mineral value, jobs
Namibia risks losing long-term mineral wealth to external entities because exclusive prospecting licence (EPL) holders are selling claims without exploring them – a practice newly appointed mines minister Modestus Amutse says must stop.
Amutse delivered the warning during his first address to ministry staff in Windhoek yesterday, where he set out his reform priorities for the mining sector.
He said slow licensing processes, weak oversight and minimal technical support have created a system in which EPLs are held and traded like paper assets, rather than used to prove and develop mineral resources.
“There is no value to that paper until you put value into it,” Amutse said, underscoring that only drilling, sampling and geological work can reveal deposits of copper, gold, silver and other critical minerals.
He cautioned that without active exploration, Namibia could lose control of deposits that should be powering local industry and employment.
The minister said many licence holders lack the skills, equipment and financial capacity to explore their areas, leading to frequent licence flipping.
He called for tighter monitoring, stronger technical guidance and a shift towards EPLs being productive assets rather than speculative commodities.
“People apply for EPLs, and they wait. They wait too long. We must prove wrong the perception that this ministry is slow and inefficient. That must end now,” he said sternly.
Amutse replaces Frans Kapofi, who previously served in the role on an interim basis.
EPL backlog weighs on investment
The challenge predates the new minister.
In August, the ministry confirmed a backlog of 415 EPL applications, including 159 lodged earlier this year.
Many were incomplete, overlapping or missing key documentation such as environmental clearance and traditional authority consent.
To address congestion, the ministry began digitising submissions, tightening screening criteria and prioritising applications that meet technical and regulatory requirements – reforms expected to accelerate exploration, particularly of critical minerals.
Amutse also criticised the export of unprocessed ore, saying Namibia continues to lose revenue because raw material is leaving the country without mineral separation or valuation.
“The ore must be processed in Kunene if it is from Kunene,” he said, urging the establishment of processing plants near mining regions.
He warned that unverified export loads often contain gold, silver and other by-products that remain undeclared and unpriced.
Local beneficiation, he said, would create jobs, boost tax income, grow downstream industries and strengthen transparency.
He added that weighing, sampling and valuation must be done at source, not after export.
Industrialisation, empowerment and rent control
Amutse said the Namibia Industrial Development Agency (NIDA), which also falls under his ministry, must be strengthened so that the mining sector contributes to manufacturing instead of raw exports.
He pointed to government’s equipment support scheme for small business owners, but warned that without market access and follow-through, it delivers too little impact.
“We keep giving equipment, equipment, equipment – but people are still poor,” he said, arguing that industrialisation requires capacity-building, product development and reliable market pathways, including for locally produced uniforms.
He further called for rent control to protect low-income households, particularly in informal settlements, and said a rent board is being considered with the urban and rural development ministry.
Amutse closed by urging urgency, measurable progress and a shift towards exploration-based value creation. Namibia, he said, must move from licences on paper to discovery in the ground and from exporting ore to exporting value.
Amutse delivered the warning during his first address to ministry staff in Windhoek yesterday, where he set out his reform priorities for the mining sector.
He said slow licensing processes, weak oversight and minimal technical support have created a system in which EPLs are held and traded like paper assets, rather than used to prove and develop mineral resources.
“There is no value to that paper until you put value into it,” Amutse said, underscoring that only drilling, sampling and geological work can reveal deposits of copper, gold, silver and other critical minerals.
He cautioned that without active exploration, Namibia could lose control of deposits that should be powering local industry and employment.
The minister said many licence holders lack the skills, equipment and financial capacity to explore their areas, leading to frequent licence flipping.
He called for tighter monitoring, stronger technical guidance and a shift towards EPLs being productive assets rather than speculative commodities.
“People apply for EPLs, and they wait. They wait too long. We must prove wrong the perception that this ministry is slow and inefficient. That must end now,” he said sternly.
Amutse replaces Frans Kapofi, who previously served in the role on an interim basis.
EPL backlog weighs on investment
The challenge predates the new minister.
In August, the ministry confirmed a backlog of 415 EPL applications, including 159 lodged earlier this year.
Many were incomplete, overlapping or missing key documentation such as environmental clearance and traditional authority consent.
To address congestion, the ministry began digitising submissions, tightening screening criteria and prioritising applications that meet technical and regulatory requirements – reforms expected to accelerate exploration, particularly of critical minerals.
Amutse also criticised the export of unprocessed ore, saying Namibia continues to lose revenue because raw material is leaving the country without mineral separation or valuation.
“The ore must be processed in Kunene if it is from Kunene,” he said, urging the establishment of processing plants near mining regions.
He warned that unverified export loads often contain gold, silver and other by-products that remain undeclared and unpriced.
Local beneficiation, he said, would create jobs, boost tax income, grow downstream industries and strengthen transparency.
He added that weighing, sampling and valuation must be done at source, not after export.
Industrialisation, empowerment and rent control
Amutse said the Namibia Industrial Development Agency (NIDA), which also falls under his ministry, must be strengthened so that the mining sector contributes to manufacturing instead of raw exports.
He pointed to government’s equipment support scheme for small business owners, but warned that without market access and follow-through, it delivers too little impact.
“We keep giving equipment, equipment, equipment – but people are still poor,” he said, arguing that industrialisation requires capacity-building, product development and reliable market pathways, including for locally produced uniforms.
He further called for rent control to protect low-income households, particularly in informal settlements, and said a rent board is being considered with the urban and rural development ministry.
Amutse closed by urging urgency, measurable progress and a shift towards exploration-based value creation. Namibia, he said, must move from licences on paper to discovery in the ground and from exporting ore to exporting value.
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