The Namibian (Windhoek)

Namibia: Law to Slap Levy on All Minerals Mined

THE Minister of Mines and Energy has asked Parliament to urgently adopt an amendment to the Minerals Act of 1992, which will provide for a royalty to be imposed on all minerals mined in Namibia.

Tabling the amendment in the National Assembly yesterday, Minister Erkki Nghimtina said the new royalties mining companies would have to pay would swell State revenue.

Currently royalties are only levied on precious stones like diamonds and dimension stone like marble, sodalite and granite and are between three and five per cent.

"The proposed amendments will bring to an end the sale and export of our mineral resources without royalties paid to the State," Minister Nghimtina said.

"It will also remove restrictions on the maximum royalties to be charged."

In addition, the Mining Minister may also impose an unrestricted 'windfall royalty' on the holder of a mining claim or a mining licence, should market prices of a mineral resource increase so much that the mining company's operations become "significantly more profitable".

A short debate ensued and Prime Minister Nahas Angula proposed to think further and to impose an export levy on all raw materials shipped out of Namibia.

The debate continues.

Ads by Google

Copyright © 2008 The Namibian. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.