Mining industry 'maturing'
Mining industry 'maturing'

Mining industry 'maturing'

While Namibia had been home to some big mining majors such as Rio Tinto and Anglo, many of them have sold their Namibian assets as profit margins have slowly been eroded over the life of the mine.
Ellanie Smit
ELLANIE SMIT

WINDHOEK



Chamber of Mines president Zebra Kasete says the mining sector in Namibia has undergone many changes over the past few years as it has matured, particularly with regard to ownership.

Kasete made these remarks in a review of the industry for 2019 during the chamber's recent AGM.

He said while Namibia had been home to some big mining majors such as Rio Tinto and Anglo, many of them have sold their Namibian assets as profit margins have slowly been eroded over the life of the mine.

“Although many commentators view these developments as negative, the change in ownership has facilitated the continuation of these operators, which would have otherwise likely closed down.”

Rio Tinto last year concluded the sale of its 69% shareholding in the Rössing Uranium Mine to China National Uranium Corporation. Kasete said the sale diverted the loss of some 700 jobs as the prolonged low price of uranium and the increasing cost profile threatened the viability of continuing operations for Rio Tinto.



Diamonds not forever

Another important sale concluded in 2019 was that of Namdeb's Elizabeth Bay mine to Lewcor.

“The ageing profile and diminishing resources of Namdeb's diamond land-based operations have contributed to an unsustainable cost profile of running mines.”

Kasete said the closure of land-based operations is scheduled for 2021, otherwise the life of the mine could be extended by several decades if the government accepts proposals on a revised tax regime for land-based diamond mining operations.

“Lewcor as the new operator of the Elizabeth Bay mine is able to inject new life into this land-based diamond operation that would otherwise have been shut down.”



Gold and salt

As part of its restructuring exercise, OKR's Navachab gold mine offered voluntary separation and early retirement packages to its employees, of whom 29 accepted this offer.

Furthermore, Walvis Bay Salt and Chemicals invested N$100 million in the construction of a new salt processing facility to improve operational efficiency and increase production capacity.

The company also concluded the sale of 15% shareholding to Namibian BEE partners.

AfriTin shipped its first tin concentrate from the rejuvenated Uis Tin mine, marking a milestone in the first phase of redeveloping the mine that had been closed for 30 years. The company progressed with ramping up of operations towards producing 60 tonnes of tin concentrate a month.

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Namibian Sun 2024-04-27

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Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 338.05/OZ UP +0.31% | Copper US$ 4.54/lb UP +0.71% | Zinc US$ 2 869.50/T UP 0.15% | Brent Crude Oil US$ 88.96/BBP UP +0.08% | Platinum US$ 913.47/OZ DOWN -0.0026 Sport results: Premier League: Brighton 0 vs 4 Manchester City | Manchester United 4 vs 2 Sheffield United | Everton 2 vs 0 Liverpool | Crystal Palace 2 vs 0 Newcastle | Wolves 0 vs 1 Bournemouth LaLiga: Real Sociedad 0 vs 1 Real Madrid SerieA: Frosinone 3 vs 0 Salernitana | Udinese 1 vs 2 AS Roma European Championships Qualifying: Queens Park Rangers 4 vs 0 Leeds United | Coventry City 2 vs 3 Hull City English Championship: Queens Park Rangers 4 vs 0 Leeds United | Coventry City 2 vs 3 Hull City Weather: Katima Mulilo: 16° | 31° Rundu: 20° | 32° Eenhana: 17° | 33° Oshakati: 19° | 33° Ruacana: 16° | 33° Tsumeb: 17° | 31° Otjiwarongo: 17° | 30° Omaruru: 19° | 32° Windhoek: 16° | 28° Gobabis: 17° | 28° Henties Bay: 17° | 25° Wind speed: 19km/h, Wind direction: S, Low tide: 11:03, High tide: 05:02, Low Tide: 23:14, High tide: 17:32 Swakopmund: 16° | 22° Wind speed: 21km/h, Wind direction: SW, Low tide: 11:01, High tide: 05:00, Low Tide: 23:12, High tide: 17:30 Walvis Bay: 18° | 29° Wind speed: 28km/h, Wind direction: SW, Low tide: 11:01, High tide: 04:59, Low Tide: 23:12, High tide: 17:29 Rehoboth: 18° | 29° Mariental: 21° | 32° Keetmanshoop: 22° | 33° Aranos: 18° | 31° Lüderitz: 16° | 28° Ariamsvlei: 22° | 33° Oranjemund: 14° | 25° Luanda: 25° | 30° Gaborone: 15° | 26° Lubumbashi: 11° | 24° Mbabane: 11° | 20° Maseru: 10° | 23° Antananarivo: 15° | 24° Lilongwe: 13° | 24° Maputo: 17° | 26° Windhoek: 16° | 28° Cape Town: 16° | 23° Durban: 15° | 24° Johannesburg: 14° | 23° Dar es Salaam: 23° | 30° Lusaka: 15° | 25° Harare: 12° | 24° Economic Indicators: Currency: GBP to NAD 23.44 | EUR to NAD 20.1 | CNY to NAD 2.59 | USD to NAD 18.8 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.32 | EGP to NAD 0.38 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.7 | ZWL to NAD 0.04 | BRL to NAD 3.66 | RUB to NAD 0.2 | INR to NAD 0.23 | USD to DZD 134.22 | USD to AOA 834.06 | USD to BWP 13.79 | USD to EGP 47.85 | USD to KES 134.48 | USD to NGN 1329.44 | USD to ZAR 18.78 | USD to ZMW 26.5 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 75370.99 Up +1.40% | Namibian Stock Exchange (NSX) Overall Index 1673.12 Up +1.85% | Casablanca Stock Exchange (CSE) MASI 13354.97 Up +0.06% | Egyptian Exchange (EGX) 30 Index 25917.59 Down -3.21% | Botswana Stock Exchange (BSE) DCI 9142.54 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 338.05/OZ UP +0.31% | Copper US$ 4.54/lb UP +0.71% | Zinc US$ 2 869.50/T UP 0.15% | Brent Crude Oil US$ 88.96/BBP UP +0.08% | Platinum US$ 913.47/OZ DOWN -0.0026