Irene !hoaes
2 June 2008
Windhoek — Namibia's mining industry announced a bumper turnover of N$13.8 billion last year, representing a 13 percent increase.
Value addition generated a record N$5.5 billon contributing almost 12 percent to Namibia's Gross Domestic Product and almost 60 percent to merchandise exports.
It is reported that the industry outspent Government on fixed investment for the fourth year in a row, accounting for over a quarter of Gross Fixed Capital Formation for the entire economy.
Moreover, the mining industry indicates that last year could equally surpass the exceptional performance in 2006.
Corporate tax and the much-disputed royalty tax generated N$1.4 billion last year compared to N$1.3 billion in 2006.
Some industry players are of the opinion that the legal pre-conditions for imposing the royalty levy contained in the Minerals Act have not been met.
Individual members are still in consultation with the mines ministry in this regard.
Most members of the chamber have, however, agreed to pay the revised royalty tax that officially came into effect in 2006.
Wages and salaries paid last year amounted to N$1.3 billion, compared to N$1.1 billion in 2006.
Permanent employees in the sector were 7901 compared to 7691 in 2006.
Exploration expenditure reached N$482 million in 2006 - the highest since independence.
"This is primarily driven by the increases in mineral prices and the conducive environment in Namibia," the President of the Chamber of Mines, Otto Shikongo, said during an annual gala dinner over the weekend.
Shikongo said the last two years have seen the prices of minerals produced in Namibia reach historically unprecedented levels, which had fundamental effects on both production and exploration within the country.
With the formation of the Namibia Diamond Trading Company (NDTC), the Government and De Beers aim to increase the amount of local cutting and polishing of rough diamonds in Namibia.
Eleven site holders were identified and allocations made, aiming at increasing the value of rough diamonds cut and polished locally to N$2 billion by 2011.
Almost at the same time, the new uranium mine, Langer Heinrich Uranium was commissioned to produce 1180 tonnes of uranium oxide a year with 132 permanent employees.
Recently, the Government also announced the possibility of nuclear power generation, in view of the abundant uranium resource.
"Weatherly International demonstrated its intention to make a serious contribution to the economy following the purchase of Ongopolo Mining & Processing in July 2006," the chamber's president said.
Shikongo said of note is the smelter capacity that is to be expanded from 20000 to 50000 tonnes a year.
Skorpion Zinc Mine exceeded nameplate capacity by producing just over 150000 tonnes of special high grade zinc last year.
The combination of this and record high zinc prices led to a record sales achievement.
Over N$1.4 billon in taxes were paid to the Namibian Government.
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