Zinc shrinks mining jobs

About 96% of the mining workforce employed in 2020 were Namibians.

16 July 2021 | Business

Applying a conservative mining multiplier of 7, the mining industry created 101 045 jobs. – Chamber of Mines of Namibia

Jo-Maré Duddy – Operational mining member companies of the Chamber of Mines of Namibia last year provided direct permanent employment to 8 147 people, 818 or 9% less than in 2019.

Total direct permanent employment by these companies were last this low in 2015, when the number stood at 8 259.

Releasing its latest annual review yesterday, the Chamber attributed the loss of jobs mainly to the closure of the Skorpion Zinc mine. In 2019, the mine had 490 permanent employees. It plummeted to 40 last year.

Skorpion Zinc was placed on care and maintenance in April 2020. This, however, was not as a result of the Covid-19 pandemic, the Chamber pointed out.

“As per its life of mine plan, the operation was initially scheduled for closure in May 2020 due to depletion of the orebody. Safety concerns regarding multiple slope failures lead to the early closure of the mine, and approximately 1 700 [direct and indirect] employees were affected,” the Chamber said.

In addition, North River Resources placed the Namib Lead and Zinc mine on care and maintenance due to its adverse operational environment during the pandemic, as well as financing challenges.

According to the Chamber: “The lower prices of zinc and lead early in 2020, and the Covid-19 restrictions that were enforced during the initial lockdown, rendered the continuation and ramp-up of operations unviable. The confined underground environment made social distancing impractical.”

A total of 129 permanent employees were retrenched in the process.

TAX, LOCAL SPENT

In total, the mining industry directly employed 14 591 individuals in 2020, an 11% drop in the number of permanent jobs compared to 2019.

“The direct employment consisted of 8 361 permanent employees, 902 temporary employees and 5 172 contractors. Applying a conservative mining multiplier of 7, the mining industry created 101 045 jobs, which is a sizeable portion of Namibia’s workforce,” the Chamber said.

The Chamber pointed out that every job created by the mining industry generates an important source of revenue for government through personal tax and value-added tax (VAT) as a consumption tax. Last year, employees from mining companies paid a recorded N$1.25 billion in pay-as-you-earn (PAYE) tax.

About 96% of the mining workforce employed in 2020 were Namibians, according to the Chamber. “The majority of the wages and salaries bill, amounting to N$6.06 billion, circulated within, and benefited the local economy,” it added.

Moreover, the mining industry maintained its high local expenditure component which amounted to N$12.305 billion, the Chamber said.

Similar News

 

Taxing ­rendering ­services outside ­Namibia

21 hours ago | Business

Stefan SwartzHave you and your employer been in a position where the services you perform, as part of your trade, had to be performed to...

COMPANY NEWS IN BRIEF

21 hours ago | Business

Aspen supplying Johnson & Johnson vaccine South Africa's Aspen Pharmacare started supplying the first batch of Johnson & Johnson Covid-19 vaccine to the country on...

Volkswagen improves year-on-year sales

21 hours ago | Business

The Volkswagen brand (passenger cars and commercial vehicles) sold a combined 32 603 vehicles in the first six months of 2021.The Volkswagen passenger car brand...

Managing risks during the pandemic

21 hours ago | Business

B7: What is the most important lesson businesses should learn from the pandemic?SK: The Covid-19 pandemic has shown us just how quickly our way of...

COMPANY NEWS IN BRIEF

1 day - 27 July 2021 | Business

Unifor starts strike at Rio Tinto Canadian union Unifor said on Sunday about 900 workers had started strike action at global miner Rio Tinto's operations...

US companies push Covid-19 shots for staff

2 days ago - 26 July 2021 | Business

Timothy Aeppel and Ben Klayman - Kevin Kelly is hitting his anti-vax workers where it may hurt them most: their paychecks.On Sept. 1, when regular...

Company news in brief

2 days ago - 26 July 2021 | Business

Global insurance recovery will be fasterThe global insurance industry is poised to recover more quickly and forcefully from the pandemic than it did after the...

O&L Leisure takes ‘urgent rescue measures’

5 days ago - 23 July 2021 | Business

Jo-Maré Duddy – The basic salaries of nearly 500 employees of O&L Leisure will be cut by between 25% and 50% for the next three...

Meeting the legal needs of people

5 days ago - 23 July 2021 | Business

Rivaldo Kavanga The firm is a general law practice. Their main areas of practice are criminal defence, labour law, commercial litigation, corporate governance, administrative law,...

Breathing deep

5 days ago - 23 July 2021 | Business

During the first week of the Breathe Namibia campaign, Agra and Woermann, Brock & Co staff handed over more than 50 Oxygenators to recipients in...

Latest News

Fighting the fire of discontent

21 hours ago | Economics

Jo-Maré Duddy – Although Namibia shares a similar volatile cocktail of high inequality, poverty, unemployment, corruption and waning trust in political powers than South Africa,...

Livestock marketing gaining momentum

21 hours ago | Economics

PHILLEPUS UUSIKUDue to the unavailability of animals in the market for the month of April 2021, there was a massive decline in the number of...

Covid: Come to work even...

21 hours ago | Health

TUYEIMO HAIDULA OSHAKATIThe health ministry has ordered its staff members in the north to...

African central banks to hold...

21 hours ago | Economics

VUYANI NDABAMajor sub-Saharan African central banks are expected to keep interest rates on hold this week as the region's recovery lags the rest of the...

EDITORIAL: ACC reappointments discouraging

21 hours ago | Opinion

First things first: No sitting president should be appointing the anti-corruption boss in any constitutional democracy. It compromises ethics, impartiality and – perhaps most importantly...

Taxing ­rendering ­services outside ­Namibia

21 hours ago | Business

Stefan SwartzHave you and your employer been in a position where the services you perform, as part of your trade, had to be performed to...

Africa demands local production of...

21 hours ago | Economics

Global pharmaceutical firms should license production of Covid-19 vaccines in Africa rather than just do piecemeal contract deals, an African Union special envoy has said.By...

Crash near Henties kills govt...

21 hours ago | Accidents

Staff Reporter Henties Bay A 49-year-old man died in an accident on the C-34 road yesterday.According to the Namibian police’s Erongo commander...

AstraZeneca keeps eluding Namibia

21 hours ago | Health

JEMIMA BEUKES WINDHOEKGovernment has expressed serious concern with the perpetual delays of AstraZeneca Covid-19 vaccine delivery, which has now put the...

Load More