Swakop Uranium executive vice president Irvinne Simataa has called for a fundamental shift in the relationship between government and the private sector, arguing that Namibia can unlock far greater mining investment if government focuses on creating an enabling environment while allowing industry to execute projects.
Speaking during a panel discussion at the Namibia Mining Expo and Conference on Wednesday, Simataa said the Namibia Public-Private Forum (NamPPF) had demonstrated what could be achieved when government and business worked together, but warned that slow decision-making and inadequate consultation continued to delay investment.
“I think there has to be a discussion about how we leverage each individual’s strengths, let business do business, and let government create the environment for conducive business,” Simataa said.
He said the mining industry was not seeking to replace government’s role but wanted greater collaboration, transparency and faster implementation of decisions that would unlock projects already committed to by investors.
Drawing on Swakop Uranium’s experience in developing the Erongo desalination project, Simataa said the private sector had contributed financial capacity, technical expertise and guaranteed demand, while government had provided the regulatory framework and institutional authority needed to move the project forward.
“The industry has its strengths, and government also has its own strengths,” he said.
“In this particular relationship, Swakop Uranium on behalf of the private sector brings its financial muscle, its technical muscle and the demand profile. NamWater, as a state-owned entity, brings the regulatory robustness because they are charged with the task of distributing water. They also bring the ability to key into corridor infrastructure of government.”
Simataa said the mining industry had already begun honouring the commitments it made under the Namibia Public-Private Forum and expected government to maintain the same momentum.
He said Swakop Uranium’s N$1.4 billion exploration commitment was already being implemented through Namibia’s largest active exploration programme.
“We are now spending at levels of 340 million per annum. We currently are the largest exploration programme in the country, at 100,000 metres of RC and diamond drilling currently being executed on our assets,” he said.
The exploration programme has already created 182 jobs, while the company’s US$400 million heap leach project has received an investment decision and is expected to move into construction during the fourth quarter of this year.
Simataa stressed that Swakop Uranium’s involvement in the Erongo desalination project was never about entering the water business.
“We are not a water company, we’re a uranium company, and therefore anything else that impedes our ability to perform our uranium business will then be considered a risk which we will mitigate sufficiently,” he said.
He explained that the desalination project, first conceived more than two decades ago, was intended to guarantee long-term water security for Namibia’s uranium industry.
According to Simataa, Swakop Uranium entered the negotiations about six years ago on behalf of the mining industry and presented government with what he described as an unsolicited proposal, offering financial capacity, technical expertise and a guaranteed customer base.
The company expects to consume at least half of the water produced by the plant, making it possible to underpin the project’s commercial viability.
He said the collaboration eventually led to Cabinet approving the project framework, negotiations with NamWater and the establishment of Sonam Desalination (Pty) Ltd, the joint venture company officially launched by Prime Minister Elijah Ngurare.
The company now has its own board and management team, procurement has advanced substantially and the engineering, procurement and construction contract is expected to be awarded around the end of August or early September, with construction anticipated before the end of the year.
Simataa also clarified the respective roles of the partners, saying Sonam Desalination would produce the water while NamWater, as required by law, would remain the country’s sole distributor.
“Yes we are a JV partner in the company to produce the water, but we are also just a customer like anybody else,” he said, adding that Swakop Uranium’s primary interest was ensuring reliable and affordable water supplies for mining operations.
Turning to the broader investment climate, Simataa warned that delays in decision-making come at a significant financial cost.
“The world that we work in, it costs money,” he said.
He noted that when the desalination project was first proposed more than 20 years ago it could have cost about N$900 million. By the time Swakop Uranium joined discussions six years ago, the estimated cost had risen to about N$2 billion. Today, the project is expected to cost just under N$3 billion.
“The necessity was never a question mark. We’ve spent six years trying to have patriotic discussions that are now going to cost us the difference between 900 million and 3 billion,” he said.
Simataa also called for more transparent engagement between policymakers and the private sector before decisions are taken.
“It would appear that when it comes to conversations within government, the populist approach drives what makes sense,” he said.
“We would hope that there will be transparency around having those kinds of discussions.”
He added that government could improve outcomes by engaging the private sector “at a level where we are consulted, not necessarily just being instructed or being seen as adversarial”.
Despite his criticism, Simataa welcomed President Netumbo Nandi-Ndaitwah’s remarks at the opening of the conference, saying they signalled government’s recognition of mining as a key driver of economic growth.
“The president’s comments this morning were very encouraging. Firstly, we are recognised as the number one enabler, and we are prepared as a sector to play and take charge of that role. We are ready,” he said.
Simataa ended by revealing that after making investment commitments on behalf of the mining industry during the Namibia Public-Private Forum, he personally contacted the managing directors of participating companies to remind them that those commitments had to be honoured.
“I also spoke to the individual MDs, and I said, you know, that commitment … don’t make me look bad, because I made a commitment on your behalf,” he said, arguing that the mining industry had demonstrated its willingness to deliver and that government and business now needed to move forward with the same sense of urgency.
