Aupindi warns Epangelo faces a ‘strategic disaster’

Swapo parliamentarian Tobie Aupindi has raised serious concerns about the state of Namibia’s flagship mining company, Epangelo Mining, describing the situation as a “strategic disaster” during his interview on The Agenda last Sunday.

Epangelo Mining Company was established by the Namibian government in 2008 as a wholly state-owned commercial entity under the Companies Act.

The company's establishment followed policy discussions within the mines and energy ministry about creating a national mining company that could allow the state to obtain equity stakes in strategic mineral projects such as uranium, gold and base metals.

The intention was to mirror the role of state resource companies in other jurisdictions and to ensure that Namibia captured greater value from its mineral wealth.

However, because Epangelo was created as a regular company rather than through a dedicated Act of Parliament, its mandate and powers were never clearly entrenched in law.

This has created persistent structural challenges, leaving the company without automatic rights to participate in mining projects.

Epangelo must negotiate equity deals like any private investor, and it remains heavily dependent on Treasury allocations, which limit its ability to acquire meaningful stakes in large mines.

Epangelo Mining has received N$12 million annually in the 2024/25 and 2025/26 national budgets, making it one of the least funded state-owned enterprises.

This contrasts sharply with allocations to other state-owned enterprises (SOEs) such as TransNamib (about N$300 million), Agribank (over N$176 million), Meatco (around N$100 million) and AMTA (about N$72 million).

The disparity highlights how Namibia’s state mining company remains significantly undercapitalised despite its mandate to secure state participation in the country’s mineral resources.

Borrowing funds

Aupindi said the company has not been properly capitalised and, as a result, has struggled to dictate the pace of negotiations. This has forced it to borrow funds to acquire stakes in key projects, rather than being free-carried.

He explained that Epangelo often had to buy into licences without sufficient capital, creating loan arrangements against its shareholding that now require dividend repayments.

“They are literally paying back the loan through the returns that are coming in the form of dividends,” he said, warning that this exposes the state’s strategic arm to market volatility and limits its ability to influence the sector.

Epangelo’s 10 % stake in the Husab Uranium Mine was financed through a multimillion-dollar loan, later increased to US$258.9 million (N$2.12 billion), to be repaid over 15 years from future dividends.

The company also acquired a 7.5 % stake in the Navachab Gold Mine through vendor financing, reportedly valued at N$259 million, and minority stakes in the Kombat Copper Mine (10 %), Samicor Diamonds (8 %), and Yellow Dune Uranium (5 %). Aupindi said commodity price fluctuations and exchange-rate volatility have delayed dividends, limiting Epangelo’s ability to service these debts.

Selling EPLs

According to recent data from Namibia’s industries, mines and energy ministry, the country currently has 588 active exclusive prospecting licences (EPLs), with a backlog of applications still under review, including 159 submissions made in 2025 that are yet to be evaluated. 

In contrast, Epangelo Mining currently holds around 10 active EPLs, down from roughly 40 at its inception in 2008, with several licences lost or sold to raise immediate funds, limiting the company’s ability to serve as the Namibian state’s instrument for extracting value from mineral resources.

“This is our strategic arm of government to intervene in the mining industry,” Dr Aupindi said. “We cannot subject them to the terms that everyone else is subjected to. We must be intentional and ensure that a portion belongs to Epangelo.”

He emphasised that government negotiations must protect the state’s stake without exposing it to unnecessary financial risk, particularly in a period of economic uncertainty.

Aupindi also tied the challenges facing Epangelo to broader policy failures, arguing that without clear objectives and a deliberate strategy, the state risks losing valuable opportunities in the mining sector.

He highlighted that proper capitalisation and free-carried stakes are essential for the company to dictate the pace of investments, attract foreign partners, and ultimately increase the value of Namibia’s economy.

“These loans are exposing Epangelo’s balance sheet to market volatilities,” he said. “They can never really build up enough liquidity or capital to dictate the pace of mining development.”