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The mining sector in Namibia contracted by 9.4% in 2025, weighed down by lower diamond output, reduced base metal production and weaker global demand yet still generated N$64.18 billion in sales revenue, a 25% increase on the previous year driven by record gold prices and growing uranium production.
Chamber of Mines Chief Executive Veston Malango, launching the 2025 Chamber Annual Review in Windhoek, said the sector remained a key pillar of the economy despite a difficult global environment. Mining contributed approximately 14% to Namibia’s GDP, maintaining its position as the largest contributor among primary industries. “Strong uranium growth followed the restart of Langer Heinrich, while gold production also increased modestly. Diamond production declined amid weaker global demand, while base metals contracted except for tin. This shows that diversification towards uranium and gold is becoming increasingly evident,” stated Malango.
The government’s revenue from mining increased by 39% to N$7.8 billion through taxes, royalties and export levies, with royalties reaching N$2.46 billion and export levies rising 90% to N$685 million. Local procurement remained robust, with mining companies spending N$23.97 billion on discretionary local procurement and N$2.83 billion on non-discretionary procurement, about 65% of total procurement spending retained within Namibia. Exploration spending increased by 22% to N$1.496 billion and fixed investment rose 31% to N$7.46 billion, pointing to future growth in uranium, gold, copper and other minerals.
Malango sounded a cautionary note on investor attractiveness. The latest Fraser Institute survey shows Namibia’s global ranking dropped from 30th out of 82 jurisdictions to 51st out of 68, with its African ranking falling from fourth to seventh. “Restoring policy certainty is critical to maintaining Namibia’s competitiveness for mining investment. The sector is resilient and well positioned but sustained investment will depend on a stable and competitive policy environment,” said Malango. The numbers tell a story of a sector that absorbed a difficult year whilst continuing to deliver but one that cannot afford to take investor confidence for granted.
