6 November 2008

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.

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