Mining expects better 2021

Jo-Maré Duddy - Although some mining operations in Namibia were negatively impacted by Covid-19 this year, there are “most certainly green shoots of growth for 2021”.
Addressing the mining industry in its last e-newsletter of 2020, the CEO of the Chamber of Mines of Namibia, Veston Malango, said it has been a difficult year for most.
It has no doubt been a difficult year for most, and I’m sure many of us keenly await the festive season for a well-deserved break and a peaceful time to reflect with family and friends.
“The pandemic has cut across all economies, livelihoods and households and it is time to take stock of how we can rebuild our economy in a post-pandemic world,” Malango said.
He, however, highlighted three positive developments in the sector.
“Debmarine Namibia is forging ahead with the construction of its state of the art Additional Mining Vessel no.3, and B2Gold Namibia has commenced development of its underground gold mine.
“Government’s decision to abolish the non-deductibility of royalties proposal has once again placed Namibia as a highly sought after destination for mining investment, with new decisions on the table to grow and expand mining operations in Namibia,” Malango said.
B2GOLD
On 30 October, the first blast was taken at the portal to the Wolfshag Underground Mine, turning a new chapter in the mining success story of B2Gold Namibia. It also heralded the introduction of the first underground gold mine in Namibia, promising a significant injection into the fiscus over the next five years.
The central part of the underground mine will be located 275 metres below surface and accessed via a single 1 300-metre-long decline, the Chamber said in its latest newsletter, released today.
“The production phase of the project will commence by January 2022 when lateral development reaches the main ore body. The ore will be mined with a longhole stoping method at a production rate of 1 100 tonnes per day.”
The underground mineral reserve of the mine is estimated to contain 210 000 ounces of gold contained in 1.2 million tonnes of ore grading at 5.57g/t gold. It will be extracted over a period of four years from January 2022 to August 2025.
During this period, it is expected that the project will realise revenue of more than N$6 billion at a gold price of US$1 500 per ounce, with an incremental All-in Sustaining Cost (ASIC) of US$609 per ounce.
“In addition to returning an estimated US$16.1 million (N$241.5 million) in royalties and export levies to the government of Namibia over the four-year period, the project will also contribute significantly to the Namibian GDP through corporate taxes, withholding taxes and PAYE,” the newsletter stated.
An estimated 300 to 400 direct and indirect employment opportunities will be created during the present economic downturn, a period that has seen a number of mining operations in Namibia being put on care and maintenance and skilled workers being retrenched, it continued.
DEBMARINE NAMIBIA
The AMV3 vessel project execution is powering ahead despite Covid-19 and the shipyard has demonstrated remarkable resilience, according to the newsletter.
“The project is progressing well on all performance metrics and is still forecast to complete on time and within budget. The vessel is nearing construction completion, with its maiden voyage scheduled early in 2021. The vessel will first sail to Cape Town, South Africa, to be fitted with the mission equipment, before it sails to Namibian waters to commence operations,” it stated.
The N$7-billion vessel is expected to create more than 161 new jobs and contribute an additional 500 000 carats annually to Debmarine Namibia’s production, an increase of approximately 35 % on current production.
Upon completion, this will be the seventh vessel in Debmarine Namibia’s fleet.