Chamber of Mines upbeat about sector growth prospects in 2023

January 27, 2023

The Chamber of Mines of Namibia is upbeat about the local mining sector’s growth prospects, highlighting the expected growth in output from the diamonds and uranium sectors.

“In the short term, growth in the mining sector remains promising. Primarily because of the improving minerals commodity market supporting increased capital inflows into exploration activity worldwide,” said the mining body.

It also cited various promising projects, including base metals producer Andrada Mining’s Uis tin mine, which is in the process of expanding its operation to increase its production to 5,000 tonnes per year. The miner is also investigating the possibility of incorporating lithium and tantalum recovery into its operations.

The Canada-headquartered Northern Graphite is also restarting the Okanjande graphite mine just outside Otjiwarongo, according to the chamber. The graphite producer’s website points out that the mine and the Okorusu processing plant are expected to become operational during the first half of 2023. The operation is expected to produce 31,000 tonnes per year.

"The prominent uranium projects are Bannerman Energy’s Etango-8 project and Reptile Uranium’s Tumas project. Both projects have thus far demonstrated positive economics with strong shareholder backing. Ultimately, their development is dependent on the favourable recovery of the uranium price," said the Chamber of Mines.

It also highlighted Osino Resources, which it described as "quickly moving towards the development of Namibia’s next gold mine" and aims to fast-track mine development in the next two years.

The mining body emphasised that Namibia remains a competitive destination for investment in exploration activity, due to its political stability and favourable policy environment.

One of the key developments cited by the chamber is the new VAT Amendment Act, which came into effect on 1 January 2023. The chamber successfully engaged with the Ministry of Finance over a two-year period to amend the VAT Act of 2000, addressing key challenges for exploration companies. The new legislation allows them to register for VAT unhindered and claim for input VAT refunds, which is seen as a major boost to Namibia's status as a favourable investment destination for exploration and mining.

"The new legislation has addressed key challenges for exploration companies in that they will now be able to register for VAT unhindered and claim for input VAT refunds. This is positive news for the new year and a major boost to Namibia’s status as a favourable investment destination for exploration and mining," said the chamber.

However, the Chamber of Mines also acknowledged the challenges facing the industry, such as ensuring a steady and reliable water supply to mines and communities.

"There are challenges with the water supply, especially at the coast, and current supply is not sufficient to meet the future demand of potential new uranium mines," said the Chamber. -The Brief/Mining weekly

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Last modified on Tuesday, 31 January 2023 19:53

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