MINING

The mining industry plays an important role in employment, mineral production, total export earnings and social advancement in Namibia. Namibia produces gem quality diamonds, uranium, copper, lead, zinc, arsenic, cadmium, antimony, pyrite, silver, gold, semi-precious stones, industrial minerals and dimension stone. Mining contributes 8 to 10 percent to total government revenues. Mining-related exports make up 40 percent of total export earnings from goods and services.

Preliminary data show that growth in value-added of the mining sector decelerated to 3.5 percent during 2005, as opposed to a massive growth of 36.8 percent recorded during 2004. The sluggish performance of this sector in 2005 was as a result of the slowing down in the activities of diamond mining due to the non-operation of some of the mining vessels, as well as the movement from the high production base in 2004, which had been deliberately made to offset the effects of a strong domestic currency. The output of the diamond industry had accordingly declined heavily by 6.2 percent in 2005 compared to an increase of 39.1 percent in 2004.

The output of other minerals such as copper, zinc and silver showed an expansion of 13.6 percent, 24.3 percent and 2.5 percent, respectively, resulting primarily from an improvement in the prices of basic metals.

Skorpion Zinc produced its first metal at the beginning of May 2003 and operations are proceeding smoothly. The company is aiming for full production (150,000 tonnes per annum), with benefits for the economy in general and the communities of Rosh Pinah and Lüderitz in particular.

A little over four years ago Ongopolo Mining and Processing Limited turned a liquidated copper mine into a profitable concern. Ongopolo Mining and Processing is forging ahead with several more projects, one of which is the new exploration shaft and associated development at Asis West. The company is also developing additional sources of feed material to the smelter from neighbouring Democratic Republic of Congo and Zambia.

Rössing Uranium is currently engaged in a major re-evaluation to sustain the life of the mine to the year 2015.

Anglogold’s Navachab operation recently announced that the pit extension programme has been approved, extending the life of operations significantly. Navachab is Namibia’s sole gold producing mine and prior to the approved pit extension reserves were expected to be exhausted by 2003.

Namibia is one of the largest producers of gem quality diamonds with around 98 percent of production being gem quality. Diamonds are mined along the Orange river, palaeo beach deposits along the south western and western coast of the country, as well as from offshore marine deposits. Namibia's offshore marine deposits are the world's richest, with an estimated reserve of over 1.5 billion carats. Marine diamonds represent about 56 percent of Namibia’s total diamond production.

The largest diamond mining company in Namibia is Namdeb, a partnership with De Beers and the Namibian government, which has both onshore and marine operations. Namdeb has opencast diamond mining operations covering nearly 130 kilometres of coastline north of the Orange river, while De Beers Marine operates deepwater mining. A major investment achievement of the group has been to complete the transfer of its main contractor, Debmarine, into a fully-fledged Namibian operation, based in Windhoek.

Namco is one of the main ocean diamond-mining producers. In 1996, the company identified a diamond resource estimated at around 3 million carats, which it is harvesting through robotic mining of the ocean floor.

Diamond Fields International has a marine concession in Lüderitz Bay which is expected to produce around 40,000 carats per year.

Afri-Can Marine Minerals Corporation have established themselves as one of the largest marine diamond concession holders in Namibia with a total of 28 EPLs covering a total area of 26,500 sq. km. Furthermore with regard to marine diamond mining operations, Sakawe Mining Corporation has been established and has embarked on a programme of extensive exploration.
 

Mineral Production by Volume ('000 tonnes unless otherwise indicated)
 

2001

2002

2003

2004

2005

Diamonds (‘000 carats)

1,495

1,552

1,482

2,004

1,774

Gold (kg)

2,851

2,815

2,425

2,145

2,519

Silver (tonnes)

18

36

45

15

n/a

Copper, smelted

27

18

26

24

24

Zinc, refined metal (99.9% Zn)

0

0

47

119

133

Zinc, concentrate

71

78

108

123

126

Fluorspar, concentrate

81

81

79

105

115

Salt

576

633

689

792

n/a

Uranium oxide (tonnes)

2,640

2,751

2,401

3,582

3,711

Sources: Ministry of Mines and Energy; Chamber of Mines of Namibia; De Beers; Namdeb; Rio Tinto.

 


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