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The mining sector is gearing up for a year of transformation in 2025. While setbacks in copper operations and Shell’s offshore oil exploration pose challenges, exciting advancements in gold exploration and rare earth production are sparking optimism. Mining remains one of the country’s most critical economic drivers, continuing to attract global attention despite the pressures of a volatile global market.
Canadian company Shine Minerals Corp. is the latest player to target the country’s renowned Damara Orogenic Gold Belt, an area celebrated for its rich gold deposits. This belt boasts impressive finds, including the Twin Hills Deposit (2.1 million ounces), the Navachab Gold Mine (3 million ounces), and B2Gold’s Otjikoto Gold Mine (620,000 ounces). Shine’s focus on this gold-rich region underscores the country’s reputation as a stable, investor-friendly destination for mining. With the global price of gold climbing, the nation could further cement its standing as a top gold producer if Shine Minerals delivers significant discoveries.
B2Gold’s Otjikoto Mine has been a shining star for Namibia’s economy and gold production. In 2024 alone, it delivered an impressive 198,142 ounces of gold. As open-pit mining is set to conclude in 2025, efforts will shift to processing low-grade stockpiles. There’s also potential to extend operations through the nearby Antelope deposit, which could add 80,000 to 90,000 ounces annually from 2029 to 2032. Known for its commitment to sustainability, B2Gold integrates biodiversity conservation and community development into its operations. Despite hurdles, the Otjikoto Mine stands as a testament to innovative, responsible mining practices and B2Gold’s unwavering commitment to Namibia’s mining sector.
Meanwhile, Namibia is making waves in the rare earth market—crucial for modern technologies like renewable energy systems and electric vehicles. Namibia Critical Metals Inc. (NCMI) recently announced a breakthrough in its Lofdal 2B-4 heavy rare earth project. Pilot tests revealed a streamlined production process that’s more cost-effective and efficient. Backed by Japanese partner JOGMEC, this project signals Namibia’s growing potential as a key player in rare earth production.
NCMI President Darrin Campbell emphasized the importance of these developments, noting they will be part of a pre-feasibility study later this year. If successful, the Lofdal project could diversify Namibia’s mining output beyond uranium and diamonds, firmly positioning the country as a leading producer of rare earth elements.
However, the sector has not been without its challenges. Trigon Metals, a key player in Namibia’s copper industry, recently announced the suspension of operations at its Kombat Mine due to financial and operational difficulties. Rising costs and inflation have put pressure on mining companies, and Trigon’s closure highlights broader issues facing the copper sector.
The oil and gas industry has also hit turbulence. Shell’s $400 million write-down on its offshore oil discovery in block PEL39 has been a major blow. Initial excitement following the 2022 discovery has been tempered by technical challenges, including low rock permeability and high natural gas content, which complicate oil extraction. Despite these hurdles, Shell remains optimistic about Namibia’s hydrocarbon potential, stating, “Together with our partners, we are continuing to explore potential commercial pathways to development while actively looking for further exploration opportunities in Namibia.”
Namibia’s Ministry of Mines and Energy echoed this optimism, downplaying the write-down as a natural part of the exploration process. The ministry remains confident in PEL39’s potential and is closely watching TotalEnergies, which plans a final investment decision on its Venus discovery later this year. Other major players, including Chevron, Galp, and Azule Energy, are set to drill in Namibian waters in 2024, highlighting sustained global interest in the country’s offshore prospects.
Namibia’s mining and energy sectors are undoubtedly at a crossroads. On one hand, breakthroughs in gold and rare earth production highlight the country’s potential for growth and diversification. On the other, setbacks in copper and offshore oil remind us of the risks and challenges inherent in these industries. As Namibia navigates these opportunities and obstacles, its ability to adapt and innovate will determine its continued success as a leading mining destination.
By: Eugene Dube
