WINDHOEK, 22 MAY (NAMPA) - The contribution of mining to the Gross Domestic Product (GDP) in 2012 was the highest recorded since 2007, the outgoing president of the Chamber of Mines of Namibia said on Tuesday.
Addressing stakeholders in the mining industry at the 34th annual general meeting (AGM) of the Chamber of Mines of Namibia in the capital, Mark Dawe said figures produced by the National Statistics? Agency (NSA) show that the mining industry contributed 11.5 per cent to the GDP in 2012, up from 8.2 per cent in 2011.
?This indicates that the mining industry is on its way to recovery after three years of stagnant growth, caused by global economic pressures.
This figure, however, understates the industry?s true contribution to Namibia?s GDP, as it does not include revenues from zinc-refining and copper-smelting?, noted Dawe.
Non-diamond mining eclipsed diamond mining as the larger contributor to revenue and foreign exchange earnings, and the figure for non-diamond mining includes revenue from zinc refining.
Dawe said the total revenue by non-diamond mining was N.dollars 11.437 billion, while diamond mining brought in N.dollars 7.08 billion.
Citing the Chamber?s statistics, he said the total revenue from Namibia?s mining operations was N.dollars 18.5 billion in 2012, up from N. dollars 15.8 billion in 2011.
According to NSA statistics, the mining sector spent N.dollars 3.87 billion on fixed investments in 2012, and once again contributed more than any other sector of the economy, except for Government, which spent N.dollars 4.15 billion on fixed investments.
On training and employment, mining and exploration companies collectively employed 7 898 people in permanent positions, providing 592 more jobs than in 2011.
Including temporary employees and full-time contractors, the total direct employment figure for 2012 was 13 548.
?Although the year was characterised by low uranium prices and high operating costs by many mines, the industry provided direct and indirect jobs to some 95 000 people, using a multiplier effect of seven, which we regard to be correct.
Although mining was never the largest employer by the number of employees, this is a very significant contribution, given Namibia?s small population and its high level of unemployment,? Dawe stated.