Tough year for mining

While this year has been very challenging for the mining industry, indications are that the uranium market may recover by 2022, which will result in at least five uranium projects in Namibia being advanced to mine development stage.Speaking at a recent industry briefing, Chamber of Mines president Zebra Kasete said commodity prices continue to be volatile, with uranium still very much depressed. This situation has forced Langer Heinrich to go into care and maintenance, with a loss of about 600 jobs. According to Kasete, indications are that markets may recover by 2022, at which point Langer Heinrich and Orano Mining Namibia's Trekkopje mine, which is also on care and maintenance, will recover and come back into production. This will also see at least five uranium projects advanced to mine development, said Kasete. “We have equally seen new operations in graphite and lithium open mines and quickly close down due to market vitality and other operating overheads, which rendered these operations unprofitable.”Kasete said challenges are being addressed and the mines may come back into operations again once market conditions improve. According to him investments into new mines are taking place and new operations include the Namibia Lead and Zinc Mine outside Swakopmund, the Whale Rock Cement Factory, with a mining licence over its quarry, and the revival of the Uis Tin Mine, which closed down in the early 1990s. Kasete, however, expressed concern over tax amendments in the Income Tax Amendment Bill, saying some of them are devastating to the industry and counterproductive to the objective of growing the economy. He also said mines in the south have suffered production disruptions this year due to the inability of NamWater to provide water, despite the fact that the mines always honour their contractual agreements with prompt payments. Also, uranium mines have suffered production disruptions due to water constraints, even though the industry has invested heavily in the only desalination plant in Namibia. “Old pump and piping infrastructure need to be upgraded as soon as possible, to ensure reliable supply of water to mines and ensure smooth operations at mines.”Mines minister Tom Alweendo agreed that the mining industry has not been doing well, due to unfavourable commodity prices for some minerals. “There have also been other challenges, including water and power constraints, depleting deposits and others beyond our control.”However, despite challenges, mining activities in the country contribute significantly to the economy and the national development agendas, said Alweendo. According to him one fatality was recorded this year at the Husab uranium mine. He, therefore, encouraged the industry to learn through safety peer reviews and strive for zero harm and fatalities.Alweendo said the long-outstanding issue of additional conditions about granting of exclusive prospecting licences (EPLs) have been addressed. However, the conditions regarding granting of mining licenses remain applicable.Alweendo said he has noted concerns and issues raised by the industry regarding pending mineral licence applications. He said to improve the process it has been resolved that the Mineral Prospecting and Mining Rights Advisory Committee (MPMRAC) will now meet twice a month, instead of once a month, to speed up the process.“We have also resolved to expedite the review of the minerals and diamond acts, focusing on identified critical and strategic issues.”ELLANIE SMIT

Tough year for mining

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Namibian Sun 2025-07-04

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Tough year for mining

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Namibian Sun 2025-07-04

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