Mining industry contracts 11.1%

The mining sector's share of the GDP has dropped from 12% to an average of 9%.

21 September 2020 | Business

ELLANIE SMIT

WINDHOEK



The mining industry has recorded a negative growth of 11.1% last year, a deep contraction from the positive growth of 16.1% in 2018.

This is according to the Chamber of Mines president, Zebra Kasete, who provided a detailed account of Chamber activities, policy and regulatory developments, mining sector performance and highlights in his just released President's Report for last year. The Chamber held its AGM on 16 September this year.

According to Kasete, updated numbers show that the mining sector's share of GDP has dropped from 12% to an average of 9%, suggesting a diminished role in the Namibian economy.

“The reduction is as a result of corrections made to the previous methodology in calculating the value added for diamond mining. The old methodology made no clear distinction of rough and processed diamonds and was not able the re-import of some diamonds back into Namibia from Botswana, which effectively resulted in in double counting.”



Still the biggest

Kasete said despite this revision, mining remains the largest primary sector in comparison to agriculture and fishing.

He said over 96% of the mining workforce employed last year were Namibians, which meant that that the majority of the salary bill, amounting to N$6.027 billion, circulated within the local economy.

“Moreover, the industry maintained its high local expenditure component, of which N$13.4 billion was spent on local businesses and suppliers, translating into further sources of incomes for households and individuals.”

In total the industry directly employed 16 342 individuals compared to 16 224 in 2018. Direct employment consisted of 9 027 permanent employees, 800 temporary employees, and 6 515 contractors.

According to Kasete the industry created 114 394 jobs.

He said the sector's total contribution to the state coffers decreased by 7% year-on-year as a result of reduced diamond mining output and sales values realised from lower commodity prices.

Similar News

 

Gems from Elizabeth Bay expected mid-2021

12 hours ago | Business

Namibia's Elizabeth Bay diamond mine will start operations in the first quarter of 2021, according to its new owner, Lewcor Group.Lewcor manager Abraham Grobler said...

COMPANY NEWS IN BRIEF

12 hours ago | Business

American Airlines to return Boeing 737 Max American Airlines Group plans to return Boeing 737 Max jets to service for passenger flights by the...

What I need to know about VAT as a...

1 day - 19 October 2020 | Business

A little place to call one’s own and to hopefully retire in is a goal many of us share. Whether your intention is to buy...

Company news in brief

1 day - 19 October 2020 | Business

Glencore in nickel supply talksGlencore CEO Ivan Glasenberg said on Friday that the company is talking with carmakers and battery makers about nickel - a...

Nothing beats The Bakery Den

4 days ago - 16 October 2020 | Business

Monique Adams “If baking is any labour at all, it’s a labour of love. A love that gets passed from generation to generation.” – Regina...

Company news in brief

4 days ago - 16 October 2020 | Business

Ryanair slashes winter flightsRyanair said yesterday that it will slash more flights this winter, temporarily shutting bases in Cork and Shannon in Ireland, and Toulouse...

Agriculture offers attractive monetary returns

5 days ago - 15 October 2020 | Business

PHILLEPUS UUSIKUAgriculture is one of Namibia’s most important sectors and is a significant source of economic growth and industrial transformation.Most of Namibia’s population is dependent...

COMPANY NEWS IN BRIEF

5 days ago - 15 October 2020 | Business

Apple enters 5G race with iPhone 12 Apple Inc launched its next-generation iPhone 12, with faster 5G connectivity that the California company hopes will spur...

Caught in controversy

6 days ago - 14 October 2020 | Business

Jo-Maré Duddy – Namibia’s fishing sector continues to find itself in stormy waters and is set this year for its first contraction since 2015.The Bank...

Housing project opens doors for timber

6 days ago - 14 October 2020 | Business

Two local businesses have come up with a solution to utilise locally harvested timber which cannot be exported.The Ministry of Environment, Forestry and Tourism in...

Latest News

‘No need’ for Geingob to...

12 hours ago | Government

JEMIMA BEUKES WINDHOEKSwapo spokesperson Hilma Nicanor has leapt to the defence of President Hage...

Girl (3) raped by uncle

12 hours ago | Crime

ELLANIE SMIT WINDHOEKThe rape of a three-year-old girl by her 49-year-old uncle at Mariental is among the latest sexual attacks on children...

Young, Wild and Free Nikhita

12 hours ago | People

Ester Kamati “I am unique because my journey is unique, my experiences in life, my thoughts, my words, and my actions make me unique.”Known for...

'Much more decisive' action needed...

12 hours ago | Economics

The head of the International Monetary Fund on Sunday called for significant steps to address the increasingly unsustainable debt burdens of some countries, urging creditors...

Etosha fire still raging

12 hours ago | Disasters

ERWIN LEUSCHNER SWAKOPMUND After more than a week, a fire in the Etosha National Park is still raging. The fire has destroyed a...

Celebrate cancer awareness month

12 hours ago | Opinion

As we celebrate Cancer Awareness Month, My Zone visited Delta High School and asked the learners what they know about breast cancer and what they...

Democratic regime change is permissible

12 hours ago | Opinion

President Hage Geingob drew wrath in some quarters when he tore into white Namibians who, in his own words, are deserting Swapo and essentially plotting...

The price of envy

12 hours ago | Columns

Octavia TsibesWhat is it about people that makes it hard for us sometimes to feel happy for others? We want to be good friends, good...

As we celebrate Cancer Awareness...

12 hours ago | Opinion

Corlia LiebenbergBreast cancer is a type of cancer that occurs in the breast tissue and lymph nodes of females and males. You could assist a...

Load More