Namibia: Mining Industry Will Grow Phenomenally – Malango (All – October 20, 2014)

Windhoek — Namibia’s mining activities are still the backbone of the economy and will be for many years to come as the industry grew by 6 percent during the second quarter of 2014, compared to a contraction of 6.6 percent recorded in the second quarter of 2013.

Also, during 2013 the mining industry paid profit tax of N$1.64 billion (2012: N$1.12 billion) and royalties of N$1.12 billion (2012: N957.7million) while dividends paid to government were just over N$500 million (Namdeb Holdings N$351 million and NDTC N$150 million).

This is according to Veston Malango, Chief Executive Officer at the Chamber of Mines of Namibia, who explained that Namibia currently has 17 mines, of which only one is not in operation due to being placed under care and maintenance.

However, with the ongoing construction of three new mines, the Husab Uranium Mine, the Otjikoto Gold Mine and the Tschudi Copper Mine, the country will soon have 20 mines ready for production.

“The mining industry continues to be the backbone of the national economy and will be for many years to come. Overall the industry is expected to grow phenomenally once new mines come into full production,” remarked Malango. The Chamber of Mines CEO specifically pointed out Husab mine, which constitutes an investment of N$22 billion, which once in full production will become the world’s second largest uranium mine to rank Namibia second in global uranium production.

He also mentioned the Tschudi mine that is being developed with a capital investment of N$900 million and will produce copper cathodes for the first time in the history of Namibia and will thereby create possible downstream value addition activities.

During a mining symposium on Friday, October 17, organized by the Polytechnic of Namibia’s Department of Mining and Process Engineering, Malango said the mining industry’s contribution of 13 percent to the country’s gross domestic product included turnover of N$20.93 billion during 2013 (2012: N$18.52 billion) and wages and salaries of N$3.12 billion (2012: N$2.93 billion). In addition, the industry employed just over 16 700 people last year, of whom 7 582 were permanent employees, 909 were temporary employees and 8 218 were contractors.

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