President Netumbo Nandi-Ndaitwah has urged the rapid finalisation of Namibia’s Mineral Resources Development Bill, cautioning that without modernised mining legislation, the country risks falling short of realising the full value of its natural resource endowment.
Speaking at the opening of the 2025 Mining Expo and Conference, the President described the Bill as key to enhancing the sector’s governance and aligning Namibia with global best practices in environmental and social performance.
Outdated legal framework to be replaced
The new legislation is set to replace the Minerals (Prospecting and Mining) Act of 1992.
That law, while effective in the post-independence years for attracting investment and managing mineral rights, has been overtaken by the complexity of the modern mining industry.
It lacks enforceable obligations on local participation, contains limited transparency requirements, and offers weak mechanisms for environmental accountability. It also does not account for the increasingly intricate nature of international ownership structures.
Expanded oversight of mining control
A major shift introduced by the draft law is the way it defines “controlling interest” in mining companies.
The proposed Bill extends regulatory oversight to include indirect transfers of control, such as through pledges, board changes, or shareholding arrangements that may not involve direct asset transfers.
Under the current legislation, only direct changes in unlisted entities trigger government review.
Local value addition as a pillar of reform
The Bill proposes stricter requirements for local ownership and sets beneficiation targets to ensure that a portion of Namibia’s extracted minerals is processed domestically.
These provisions aim to promote industrial development beyond raw resource extraction.
If the beneficiation clause is fully implemented, it could retain an estimated N$10 billion annually in value that currently exits the country in the form of unprocessed minerals.
This figure reflects the margin between the export value of raw materials such as uranium, copper concentrate, gold, and rare earths, and their value after local refinement.
For instance, refined copper typically sells at over twice the price of copper concentrate.
With the mining industry generating N$52.3 billion in 2024, capturing just 20% to 25% of that downstream value through local processing facilities could yield the projected savings.
Job creation through industrialisation
Domestic processing of minerals is expected to catalyse job creation in industries such as metallurgy, refining, engineering, machine operation, and transport.
Between 3,000 and 5,000 jobs could be created over the next five years—both directly and through support services.
This estimate is based on models from other countries, such as Botswana and Indonesia, where local processing has generated thousands of jobs.
Clearer environmental and social protections
The draft Bill outlines new environmental safeguards, including mandatory environmental and social impact assessments, community consultation, and financial guarantees for mine rehabilitation.
It also formalises rules around licence suspension, cancellation, and appeals—giving both investors and affected communities a clearer legal framework.
Transparency and tax revenue gains
The Bill calls for full public disclosure of mining licences, ownership structures, and all payments made to government.
These measures are aligned with the Extractive Industries Transparency Initiative (EITI), of which Namibia is a signatory.
Improved disclosure of beneficial ownership could help tackle profit shifting and tax avoidance practices.
Based on global studies and Namibia’s mining sector revenue, analysts estimate that the country could recover between N$500 million and N$1 billion per year in lost tax revenue through these transparency reforms.
These estimates are derived from conservative assumptions based on Namibia’s N$52.3 billion mining revenue in 2024.
International institutions, such as the OECD and IMF, have found that base erosion and profit shifting can reduce tax receipts in resource-rich countries by up to 20%.
Applying even a 2% to 4% loss scenario to Namibia’s sector yields a potential tax gap of N$523 million to N$1 billion, which could be mitigated under the new framework.
Local procurement and enterprise development
President Nandi-Ndaitwah also highlighted the role of the Minerals Bill in strengthening local enterprise.
She cited the recently launched National Database of Mining Goods and Services, which connects Namibian suppliers to procurement opportunities.
If local procurement thresholds were to rise from 60% to 80%, Namibian businesses could see an additional N$5 billion injected into the domestic economy annually.
Legislative process and industry response
The Bill, approved by the Cabinet in May 2025, remains open for public consultation until August 13, 2025.
It is part of Namibia’s broader reform agenda, which also includes the Critical Minerals and Metals Strategy, aimed at positioning the country as a reliable global supplier of uranium, lithium, and rare earth elements.
Although the Bill has drawn broad support from civil society and policy advocates, dissenting voices have emerged from industry stakeholders—particularly among publicly listed mining and exploration companies.
These critics include analysts from the Institute for Public Policy Research (IPPR) and contributors to the ICLG Mining Law Review, as well as mining policy analysts aligned with the IGF (Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development) framework.
Their concern centres on Clause 64, which grants the Minister of Mines and Energy authority over any change in control of licence-holder entities, including indirect transfers such as pledges or board-level restructurings. The language lacks clear thresholds or objective criteria, raising concerns about mergers, joint ventures, or equity changes involving multiple jurisdictions or exchange listings.
A second area of contention is Clause 11, which outlines the discretionary ministerial power to award, suspend, or revoke licences. Industry respondents warned that its broad, undefined discretion could lead to inconsistent outcomes without stricter procedural guidelines.
In its 2023 assessment, IPPR noted that Namibia’s mining regulatory review process is “perceived by investors as a source of uncertainty, discouraging investment.”
Similarly, ICLG emphasised the need for clarity around indirect control and processing obligations to avoid unnecessary complexity in public company transactions. Observers within IGF frameworks have urged Namibia to refine these provisions to strengthen legal certainty and maintain its appeal to international investors
A Strategic Shift for Namibia’s Future
Despite the concerns, President Nandi-Ndaitwah remains firm that the Bill will lay the foundation for a more equitable and transparent mining industry.
“Once enacted, the Minerals Bill will guarantee that resource extraction supports Namibians, attracts high-quality investment, and aligns with global standards—benefiting our nation now and into the future,” she said.
