Seven out of 13 applications for licence renewals by gold mines in Namibia met the requirements, according to Auditor-General Junias Kandjeke’s report submitted to the National Assembly last week.
The auditor also said six exceeded the seven-year limit without the necessary ministerial approval and did not implement the required reduction of exploration area upon renewal.
Kandjeke audit reports cover three financial years: 2020/2021, 2021/2022, and 2022/2023.
The audits assessed the compliance of QKR Namibia Navachab Gold Mine, B2Gold Namibia and Osino Gold Exploration and Mining.
According to the audit, QKR Namibia Navachab Gold Mine did not comply with section 50(c) for the 2020/2021 and 2021/2022 financial years.
Furthermore, the audit found that both QKR and B2Gold Namibia failed to meet the requirements of section 50(c), which concerns cooperation with industry players to support Namibian citizens in skills and technology development.
The audit said QKR Namibia Navachab Gold Mine’s structure on file shows that 92.5% of shareholding belongs to multinationals and 7.5% to a Namibian company.
However, the audit said there was no information on beneficial ownership of the 92.5% provided, and the company last submitted a poverty eradication strategy in 2016.
B2Gold Namibia’s company structure on file was 90% Mauritian and 10% Namibian, while the company’s response indicated that it is 90% Canadian, the report said.
Furthermore, the report said there was no audit evidence of beneficial ownership.
The audit stated that Osino Gold Exploration and Mining’s acceptance of additional conditions was delayed beyond the one-month notice period without ministerial approval for late submissions, as required by law.
At the time of the audit, Osino Gold Exploration and Mining’s proposed Namibia shareholding was pending approval.
However, it was unclear how the holders of the 10% shares in the New Osino Co would derive maximum benefits compared to the 90%.
The audit found that the mines ministry failed to provide supporting documents for local participation, beneficiation, research and development policies.
QKR Namibia Navachab Gold Mine only complied for the 2022/2023 year, while B2Gold Namibia complied with capacity-building requirements for all three financial years.
Osino Gold Exploration and Mining was not evaluated for capacity-building because it is still in the exploration phase.
The auditor general recommended that the mines ministry should ensure strict adherence to renewal regulations and reduction of exploration areas and regularly update company records.
Additionally, the auditor said the ministry should provide comprehensive documentation to support responses and maintain up-to-date records.
The mines ministry, the auditor said, should enforce policies on local beneficiation and capacity-building to promote sustainable development and attract foreign investment.
