Wednesday , April 24 2024

Diamond Production boosting Namibia’s mining sector

Driven predominantly by the significant boost in diamond production, Namibia’s mining sector continued to expand in 2022, posting a growth rate of 21.6 percent. This is according to Namibia’s Chamber of Mines Annual Review for 2022 released recently.

In addition to the strong economic performance of mining, the report says there are significant investment inflows into exploration and mine development, as well as growing interest in Namibia’s critical mineral resources which are expected to experience major shortfalls in the global market.

“Namibia offers an abundance and variety of these minerals, and there is growing interest in our critical mineral resources,” said President of the Chamber of Mines of Namibia Hilifa Mbako in the report.

“While this adds more optimism for Namibia’s mining outlook, it is also becoming increasingly important for the government to establish favorable terms and conditions in the mining and processing of these minerals to derive the maximum value from them and contribute to the long-term growth of the country and the sustainable supply chains of critical minerals,” he said.

Mbako also said the chamber engaged the government on critical policy and legislative matters that influence growth and investments in mining, adding that a major win for the chamber in terms of legislation was the amendment to the Value Added Tax (VAT) Act, which now enables exploration companies to be registered for VAT unhindered and also to claim input VAT refunds.

Mbako stated that by continuing its focus on key strategic areas of advocacy, the industry will see the desired investment and expansion to provide the base for Namibia’s economic diversification and advance it toward becoming a self-sustaining, resilient, and independent economy.

The chamber is assessing how it can elevate the industry’s environmental, social, and governance profile by enhancing social transformation in Namibia, reducing the industry’s environmental footprint, and upholding robust systems of governance directly within the mining sector and through regulatory mechanisms.

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