Namibia’s mining and quarrying sector contracted by 9.4% in 2025 despite strong growth in uranium and gold production, the Chamber of Mines of Namibia said in its February 2026 update released on 15 April 2026.
The contraction was largely driven by a 19.4% decline in diamond mining, alongside 12.2% declines in metal ores and 14.5% in other mining activities, according to data from the Namibia Statistics Agency cited in the report.
However, the Chamber said the scale of the contraction appears larger than expected, noting that gold production rose by about 5%.
In comparison, uranium output surged by around 23% in 2025 — gains that would ordinarily have cushioned the overall decline.
Despite the downturn, mining remains a central pillar of the economy, contributing 14% to GDP, equivalent to N$37.7 billion in output.
Metal ores, including gold and zinc, accounted for the largest share of mining activity at 55%, contributing about 7.7% to GDP, while uranium made up nearly 19% of mining output and contributed around 2.7% to GDP.
Diamonds, although under pressure, still contributed approximately 2.4% to GDP and about 17% of total mining output.
The Chamber said global commodity markets remain broadly supportive for Namibia’s key minerals, with gold prices averaging US$5,019.97 per ounce in February 2026 amid heightened geopolitical tensions.
Uranium prices also strengthened significantly, rising from US$67.26 per pound in February 2025 to US$88.23 per pound in February 2026, reflecting growing global demand for nuclear energy.
However, the global environment is becoming increasingly uncertain, with escalating tensions in the Middle East pushing up fuel and energy costs, the Chamber said.
These cost pressures are expected to weigh on mining operations, particularly in Namibia where the sector relies heavily on imported fuel.
At the same time, diamond markets remain weak, with declining global demand and rising competition from synthetic diamonds continuing to drag on production and prices.
Looking ahead, the Chamber said the outlook for Namibia’s mining sector remains mixed but resilient, supported by strong demand for gold, uranium and other strategic minerals linked to energy security and the global energy transition.
