The Chamber of Mines of Namibia says mining companies’ total revenues increased to N$52,259 billion in 2024 compared to N$51,572 billion in 2023.
The companies posted a profit of N$2.819 billion in 2024, up from N$2,731 billion in 2023.
Despite these figures, the mining sector’s fiscal contribution to government revenue significantly declined in 2024, with corporate taxes, royalties, and export levies falling by 23.8%, 11.3%, and 0.28%, respectively.
The total direct employment in Namibia’s mining industry increased to 20,654, a 13.6% rise from 18,189 recorded in 2023.
This growth highlights the sector’s continued expansion despite a few retrenchments reported during the year. The steady rise in employment underscores the industry’s resilience and contribution to national job creation efforts.
Employees in the mining sector collectively contributed N$1.695 billion in PAYE tax, further emphasizing the sector’s role in supporting public revenue.
The total wage bill amounted to N$7.996 billion, demonstrating the industry’s significant impact on household incomes and the broader economy.
In 2024, the mining industry spent N$24.154 billion on goods and services from Namibian registered businesses.
This figure accounts for approximately 46.2 % of the industry’s total revenue of N$52.295 billion.
Despite favourable global prices for key commodities such as uranium, gold, copper, and zinc, Namibia’s mining sector faced an overall contraction in 2024.
The contraction in Namibia’s mining sector was primarily driven by a decline in diamond production, which constitutes a significant portion of the industry.
Real value added from diamond mining fell by 3.7%, a reversal from the 10.9% growth recorded in 2023.
This decline was primarily due to weaker global prices, reduced demand in key markets, and deliberate production cuts aimed at stabilising prices and preserving high-quality reserves. Uranium mining posted a marginal growth of 1.8% in 2024, a considerable slowdown compared to the impressive growth rate of 29.6% achieved in 2023.
This subdued performance stemmed from lower production volumes at the Rӧssing and Swakop Uranium mines, affected by water supply challenges and planned maintenance shutdowns.
However, additional output from the Langer Heinrich mine contributed to the modest growth in uranium production.
Furthermore, the output of other key minerals, such as lead and zinc concentrate, faced setbacks due
to operational challenges, including lower ore grades. These challenges persisted despite strengthened global demand.
On a positive note, gold production rose by 2.7%, driven by record production levels at the Navachab gold mine.
The mining sector recorded a decline in fixed investment but a notable increase in exploration expenditure, reflecting a shift in capital priorities and strategic project development.
Gross Fixed Capital Formation (Fixed Investment) for 2024 stood at N$5.220 billion, marking an 11.7% decrease compared to the N$5.908 billion invested in 2023.
This downturn may be attributed to the completion of significant infrastructure phases in key projects and delayed investment decisions in new developments.
In contrast, exploration expenditure rose sharply, reaching N$1.485 billion in 2024, compared to
N$891 million in 2023.
This 66.6% increase underscores the renewed interest in mineral prospecting and early-stage project evaluations, particularly in uranium, critical minerals, copper and gold prospects.
