26 Apr 2018 13:20pm
WINDHOEK, 26 APR (NAMPA) The mining industry generated revenue of nearly N.dollars 29.1 billion in 2017, up from N.dollars 28.9 billion in 2016.
Total revenue to Government increased from N.dollars 4.8 billion in 2016 to N.dollars 5.5 billion in 2017.
Speaking at the 2018 Mining Expo here on Wednesday, Chamber of Mines of Namibia Chief Executive Officer Veston Malango said the mining sector recorded healthy growth last year on the back of a combination of a rebound in commodity prices and an increase in the production of diamonds, gold and uranium.
The mining sector has remained the bedrock of the Namibian economy in all conditions, in good and turbulent times, as seen in the last two years, said Malango.
He said there is major potential for growth of mining input and service industry in the upstream linkages, with lucrative local procurement spend.
Malango further said the industry has sustained a local spend in excess of N.dollars 11 billion per year in the last three years.
New mines being developed are smaller in nature, however, their combined contribution will make a positive impact, particularly in spin-offs to rest of the economy, he said.
Malango noted that with the recently communicated government position on the New Equitable Economic Empowerment Framework (NEEEF) Bill and the expected amended Namibia Investment Promotion Act (NIPA), the Chamber expects Namibia to regain its position as the most attractive destination in Africa for exploration and mining investments.
The NEEEF Bill is expected to be tabled in Parliament before the end of 2018, while the NIPA is set to replace the Foreign Investments Act of 1990.
Some provisions of the NIPA were retracted following consultations with the private sector.
Malango further said the sustainability of uranium mines is threatened by low uranium prices, however, analysts predict a rebound between 2020 and 2022.