Mining industry stays positive amid challenges

The Chamber of Mines is concerned with new tax proposals in the Income Tax Amendment Bill of 2018.

03 December 2018 | Business

We are consoled by the robust fundamentals of the uranium markets in the medium to long term. - Zebra Kasete, President: Chamber of Mines of Namibia

The president of the Chamber of Mines of Namibia, Zebra Kasete, says the country's mining industry continues to grow despite various challenges experienced this year.

Speaking in a mining industry briefings to the minister of mines and energy, Tom Alweendo, last week, Kasete said this year commodity markets continued to be volatile. The uranium market is still being very depressed, a situation that forced Langer Heinrich to lay off about 600 workers.

"We are, however, consoled by the robust fundamentals of the uranium markets in the medium to long term. Indications are that the markets may recover by 2022, at which point the two mines [Langer Heinrich and Trekkopje] on care and maintenance will come back into production and at least five uranium projects will advance to mine development," he said.

"The challenges are being addressed and the mines may come back into operations again when market conditions improve," he added.

Kasete told the minister that investments into new mines are currently taking place and the ministry will soon officiate some of the operations.

"New operations include the reopening of the Namibia Lead and Zinc mine outside Swakopmund, the Whale Rock Cement factory with a mining license over its quarry, and the revival of the Uis tin mine which was closed down in the early 1990s," he said.

Tax

Kasete said the chamber is concerned with new tax proposals in the Income Tax Amendment Bill of 2018.

"Some of these proposals are so devastating to the industry and thus counterproductive to the objective of growing the economy," he said.

Alweendo said in a statement that despite the challenges the industry is faced with, mining activities in the country continue to contribute significantly to the economy and national development agendas.

Rössing

The ministry has not yet received the agreement on the sale of the Rio Tinto shares in Rössing Uranium Mine in which government has a stake.

A statement issued on Friday by the permanent secretary, Simeon Negumbo, said the ministry could not speculate on any conditions that may be imposed on the transaction until it had studied the agreement and subjected it to the relevant laws.

Rio Tinto entered into a binding agreement with China National Uranium Corporation (CNUC) for the sale of Rio Tinto’s entire 68.62% stake in Rössing.

Negumbo stated that Rio Tinto had indicated to its shareholders that it had intentions to sell its stake of the company and to exit the business and that the MME was informed last year of the negotiations between Rio Tinto and CNUC for the purchase of its shares.

“If Rio Tinto’s shares are sold, the other shareholders mentioned above will still be part owners of the company,” he said.

The Namibian government owns 3.42% of shares in the uranium mine, while Iranian Foreign Investment Company has 15.29%, Industrial Development Company of South Africa 10.22% and other minority shareholders 2.45%.

Negumbo added that the sale was a private share transaction between the two parties and was subject to certain government approvals which include the MME and the Namibian Competition Commission (NaCC).

The transaction is expected to be completed in the first half of 2019.

Meanwhile, the mine will continue operating under its existing and planned programmes until otherwise informed by the board of directors or management of Rössing Uranium Limited, according to the company. – Nampa and Nampa/Xinhua

Similar News

 

SOE virus hits medical aid industry

3 hours ago | Business

Jo-Maré Duddy – State-owned enterprises’ chronic non-payment of members’ contributions forced the medical aid fund industry in the country to hike its provision for bad...

Marenica executes Namibian strategy

13 hours ago | Business

Jo-Maré Duddy - Marenica Energy Ltd has lodged nine exclusive prospecting licences (EPLs) with the ministry of mines and energy in Namibia over the past...

Company news in brief

13 hours ago | Business

SAA to reorganise in turnaround driveSouth Africa's struggling state-owned airline will reorganise into three business units as part of a revamp plan that could also...

Gold at two-week high on trade deal hope

1 day - 19 February 2019 | Business

Gold prices rose to their strongest level in more than two weeks yesterday as the US dollar weakened on hopes the United States and China...

First Russia-Africa business forum in October

1 day - 19 February 2019 | Business

In Sochi this October, the first Russia-Africa business forum will be held as part of the Russian-African Summit.According to the Roskongress Foundation, it is expected...

Shorter Ondangwa trade fair planned this year

1 day - 19 February 2019 | Business

ONDANGWA – The ninth edition of the Ondangwa Trade and Industrial Exhibition (OTIE) will take place from 29 April until 4 May this year.The town’s...

Company news in brief

1 day - 19 February 2019 | Business

MTN: SA's ex-ambassador to Iran arrestedPretoria's former ambassador to Iran has been arrested in South Africa on charges he took a bribe to help telecoms...

Recruitment of NAC CEO ongoing: Hangala

2 days ago - 18 February 2019 | Business

The process of selecting a chief executive officer for the Namibia Airports Company (NAC) is ongoing, the chairperson of the state-owned enterprise, Leake hangala, has...

No plan to revive SME Bank: Schlettwein

2 days ago - 18 February 2019 | Business

After witnessing the collapse of the SME Bank, government has no plan to resuscitate the now liquidated SME Bank, finance minister Calle Schlettwein has said....

Famed Cullinan mine banks on big diamonds to drive...

2 days ago - 18 February 2019 | Business

Emma Rumney and Barbara Lewis - The owner of one of the world's most famous diamond mines could be about a decade away from clearing...

Latest News

Boyfriend appears for Unam student's...

13 hours ago | Justice

Paulus Nghipulenga (27) has appeared in the Oshakati Magistrate's Court for the murder of his girlfriend on Sunday evening at Ongwediva. She was...

Shaningwa humbled

13 hours ago | Politics

The Swapo leadership has ordered Swapo secretary-general Sophia Shaningwa to halt the recall of three Swapo councillors at Rundu, pending the outcome of a politburo...

First Lady enters shack fray

13 hours ago | Infrastructure

First Lady Monica Geingos has reached out to experts to bring their ideas on how to solve the housing crisis to the attention of policymakers....

Vehicle sales hit another speed...

13 hours ago | Economics

Jo-Maré Duddy – The 666 new vehicles that were sold in Namibia last month was the poorest January sales figure since 2006 and the lowest...

Marenica executes Namibian strategy

13 hours ago | Business

Jo-Maré Duddy - Marenica Energy Ltd has lodged nine exclusive prospecting licences (EPLs) with the ministry of mines and energy in Namibia over the past...

Africa Briefs

13 hours ago | Economics

SA needs to build confidence in power sectorSouth Africa needs to invest more to rebuild confidence in its ability to supply power, its energy minister...

Taxed to death

13 hours ago | Opinion

In their report titled ‘Quarterly Economics and Fixed Income 1Q 2019: What Lies Ahead in 2019?’, Simonis Storm Securities (SSS) said during recessions, among the...

TradePort gets manganese green light

13 hours ago | Environment

The environment ministry has issued TradePort Namibia, one of the South African companies planning to export manganese ore through the port of Lüderitz, an environmental...

Low Orange River threatens grape...

13 hours ago | Agriculture

The dangerously low water level of the Orange River could have a devastating impact on Namibia's production of table grapes, an important export product earning...

Load More