WINDHOEK: The mining industry’s contribution to government revenue grew significantly from N.dollars 4.4 billion in 2022 to N.dollars 6.8 billion in 2023 and continues to be the largest contributor to the national economy in terms of direct and indirect job creation for Namibians.

This was stated by Vice President Netumbo Nandi-Ndaitwah at the start of the mining expo and conference in the capital on Wednesday. The 11th edition will take place from August 07 to 08, 2024.

She stated that mining is one of the greatest consumers of refined oil products, such as diesel, petrol, and other fuels that are major cost drivers, largely influenced by global oil prices and foreign exchange fluctuations.

By completing the entire value chain and refining Namibia’s own oil, the mining industry and the Namibian economy as a whole will profit from consuming domestically produced fuel at a considerably reduced cost, she said.

‘The development of these industries and the new economic opportunities they present will undoubte
dly help to create more employment opportunities for Namibians, particularly for our youth,’ she said.

She highlighted that Namibia is ranked, as the world’s third-largest producer of uranium, and this price improvement has accelerated the development plans for two advanced uranium projects, with many more likely to follow.

‘As our country becomes a more prominent player in the supply of uranium, we should also consider how Namibia may stand to benefit from the downstream nuclear value chain activities, such as the application of different technologies in food production and medicine, as well as energy production,’ she said.

She further stated that the mining industry has made considerable progress in promoting local content, particularly in terms of local procurement with local businesses and suppliers currently receiving a significant share of the industry’s total procurement budget, ranging from 60 to 80 per cent on average.

‘However, there is always potential for development, particularly in the manuf
acture of mining inputs. We feel there is a great opportunity to enhance Namibia’s mining value chain by manufacturing our own inputs where economically possible,’ she said.

In terms of local content, she referred to the public debate over ownership of mining and oil and gas products, ensuring that the ownership of natural resources is evident, as they belong to Namibians both naturally and constitutionally.

‘What we need is a clear regulation that protects that ownership and encourages investment in Namibia’s mining industry. The technical interactions are currently occurring to work on the statute,’ she concluded.

Source: The Namibia Press Agency