The Namibia Chamber of Mines president, Zebra Kasete, said the total turnover of the Chamber’s members reached N$51.572 billion in 2023, representing a 35.9% increase compared to the N$37.976 billion in 2022.
Addressing the chamber’s annual general meeting in Windhoek on Wednesday, Kasete noted that the sector’s contributions to GDP increased to 14.4% in 2023 from 9% in 2021 to 11.9 % in 2022.
The 2023 fixed investment by Chamber members increased by 18.3% in nominal terms.
Moreover, Kasete said, the sector achieved an impressive improvement in overall profitability. In 2023, it recorded a collective profit of N$2.731 billion, a stark contrast to the N$391 million loss reported in
2022.
“Notably, the collective profit was driven by the exceptional performance of B2Gold’s Otjikoto
mine, attributed to higher gold prices, increased production, and lower operating costs,” he said.
He said Namibia’s mining industry achieved remarkable growth in 2023, registering 18.9%, compared to the previous year’s (2022) growth rate of 24%.
According to Kasete, chamber members significantly bolstered the government’s tax revenue in 2023, which grew by 55.9% from N$4.402 billion in 2022 to N$6.861 billion.
This was primarily driven by the exceptionally high corporate taxes paid to the government, which amounted to N$3.967 billion, representing an increase of 98.5%.
Additionally, the increased government revenue was due to increased royalties and export levies, which grew by 17.6% and 45%, respectively.
He said the total direct employment increased by 12.6% in 2023 to 18,189, from 16,147 in 2022.
“The increase was attributed to the creation of new employment positions resulting from the restart of the Langer Heinrich mine and expansion of other operations,” he said.
Kasete added that direct employment comprised 8,950 permanent employees, 803 temporary employees and 8,436 contractors.
In 2023, employees from mining companies, 97% of whom are Namibians, paid N$1.493 billion in PAYE.
The wage bill of N$6.865 billion circulated within Namibia’s borders and created local spin-offs that support and benefit other sectors of the economy.
The mining sector spent about N$21.022 billion on goods and services from Namibian registered businesses.
As a proportion of total procurement (N$26.388 billion), 80% was spent on local businesses.
Local procurement also constituted 40.9% of the industry’s N$ 51.836 billion in revenue.
Kasete said the increased production of gold, uranium, and diamonds primarily drove mining expansion.
He said Namibia achieved record gold and uranium production in 2023, reaching 9,800 kilograms and 8,283 tonnes, respectively, representing an annual growth of 31% and 24.5% for total uranium production, respectively.
“Gold production benefited from expanded mining and processing capacity at the Navachab mine as
well as better-than-expected grades from the underground Wolfshag operation at B2Gold’s Otjikoto mine,” he said.
Kasete said the increase in uranium production resulted from several factors, including reduced production delays caused by better management of water supply disruptions, enhanced efficiency in processing plants at Husab and Rӧssing, and a positive uranium price environment.
He added that despite a slowdown in demand and declining diamond prices, Namibia increased diamond production by 6.3%, which was attributed to expanded mining capacity, successful operational ramp-up efforts by Namdeb, and higher production from Debmarine’s offshore operations.
He noted that total exploration spending by mining and exploration companies declined.
However, Kasete added, this decrease was primarily attributed to reduced exploration expenditure by mining
companies, likely influenced by their increased capital spending.
“In contrast, exploration and development chamber members recorded an 18.1% increase in exploration expenditures from 2022 to 2023.
“This growth reflects a vibrant mining exploration environment, particularly for critical minerals such as gold, uranium, and copper,” he said.
Kasete noted that Osino Resources, Bannerman, and Reptile Uranium were pivotal in driving this increase through their progressive exploration efforts as they positioned themselves for mine development.
He pointed out that significant players in critical mineral and base metal exploration, such as Craton, Namibia Critical Metals, and Damaran, contributed to this positive trend.
