Namibia’s mining industry may be on a growth trajectory, but for many Exclusive Prospecting Licence (EPL) holders, turning a licence into a producing mine remains a steep climb.
A high-level panel at the just-ended mining expo in Windhoek unpacked the common stumbling blocks and offered clear, practical advice on attracting serious investors.
Moderated by Dr. Andrea Salomo, Senior Investment Analyst for Mining at the Namibia Investment Promotion and Development Board (NIPDB), the discussion at the mining expo 2025 brought together expertise spanning geology, finance, environmental governance, and investment promotion.
Panellists included Justine Shipanga, Senior Manager for Investor Services at NIPDB; exploration entrepreneur Heye Daun; Dr. Godknows Njowa, Council Member of the Southern African Institute of Mining and Metallurgy (SAIMM); ESG specialist Jessica Bezuidenhout; and lawyer and financier Zach Kauraisa, Head of Advisory at EOS Capital.
From Paper to Project
Asked how an EPL holder can attract equity funding, Daun’s advice was blunt: an EPL on its own has little inherent value.
“It’s what you do with it that matters,” he said. This starts with investing in exploration — drilling, sampling, and building geological knowledge. Only then can the project be positioned for investor interest.
Dr. Njowa explained that “strong geological data” can be built up even on a limited budget.
He urged licence holders to start with historical Geological Survey records to understand past work and market conditions, then add new data step by step to create a compelling investment case.
ESG: Not an Afterthought
From an environmental, social, and governance (ESG) perspective, Bezuidenhout identified two recurring weaknesses that discourage investors: a lack of regulatory clarity and a fragmented approach to ESG. She argued for collaborative ESG efforts among EPL holders, utilising established platforms such as the Chamber of Mines or the Namibian Chamber of Environment to pool resources and standardise practices.
Jessica also urged early action on community relations. Obtaining an Environmental Clearance Certificate and engaging stakeholders from the outset builds a “social licence to operate,” which, she warned, is intangible but essential to long-term project stability.
Investor-ready starts with paperwork
From the NIPDB’s vantage point, Shipanga said that many promising projects fail to attract capital because their basics are incomplete: there are no pitch materials, no exploration summary, unclear shareholding, and, in some cases, joint venture agreements lacking ministerial approval under Section 31B of the Minerals Act. Without these fundamentals, she said, “serious funders won’t engage.”
Kauraisa agreed, emphasising the need for a comprehensive documentation package — including geological reports, financial statements, and proof of legal compliance — supported by a multidisciplinary team encompassing technical, legal, environmental, and economic disciplines.
Financing beyond equity
On innovative financing, Kauraisa pointed to global instruments such as streaming, royalty agreements, and off-taker prepayments.
He suggested Namibia could consider creating a state-backed exploration fund, reinvesting part of mining tax revenue to de-risk greenfield exploration and build a pipeline of future mines.
Daun noted that in production phases, sharing ownership is straightforward, but in exploration, the high risk means earn-in structures — where an investor builds their stake over time — often work best while ensuring local partners retain meaningful equity.
For Dr. Njowa, mentoring is a cost-effective way to raise the quality of project reporting.
“Sometimes 30 minutes with an experienced operator can save months of misdirected effort,” he said, calling for more industry professionals to offer guidance to license holders.
Closing messages
Daun reminded the audience that Namibia’s stable regulatory framework is one of its greatest assets and must be protected to maintain a steady flow of foreign capital. Dr. Njowa warned that protracted ownership debates erode value.
Shipanga reiterated that EPL holders should leverage existing support structures, while Kauraisa encouraged an understanding of the Lassonde Curve, which shows investors exactly how their capital will add value at each project stage.
The discussion underscored a shared truth: an EPL may be the starting point, but it is disciplined exploration, strong governance, transparent ESG, and investor-ready preparation that ultimately determine whether a licence becomes a mine.
