Abstract
Namibia is richly endowed with natural resources and is known globally for its
uranium and diamond
deposits. The country is the world’s
sixth-largest producer of uranium and among the largest gem-quality
diamond producers in value terms. It also features among the top five nations
around the globe for its
zinc, copper and lead reserves. To expand the
revenue earning potential of its mining industry, the
Namibian government
is making fervent efforts to establish a strong domestic market for diamond
cutting
and polishing. Taken together, these factors underscore the
importance of the Namibian mining industry
for its economy.
That said,
the Namibian mining industry needs to gain a foothold in certain areas to
further enhance its
prospects, particularly as diamond production appears
to slow down. Lack of water resources is a key
factor that discourages
investments in the mining industry. As a result of the nation’s
underperforming
infrastructural facilities, mineral exploration has been
slow, thus constraining the growth of the Namibian
mining industry. On the
other hand, recognising the vital role uranium is set to play in the
country’s
future, processes have been initiated to revise and amend
the Minerals Act, to align regulations that allow
judicious exploitation
of the resource.
The global economic slowdown continues to impact on
Namibia’s mining sector. A June report on PANA
stated that Weatherly
International, owner of major copper producer Ongopolo Mining, would not
be
reopening its five copper mines in 2009, despite a recent increase in
global copper prices. Weatherly’s
mining operations were suspended
in 2008, with more than 620 people losing their jobs as a consequence.
Looking forward, reports that Weatherly has been auctioning off underground
mining equipment do not
bode well for the near-term future for their
Namibian operations. That said, Managing Director Hans
Nolte has defended
the move to sell off underground mining equipment, telling PANA that his
company
may look to abandon underground mining in favour of cheaper
open-pit mining.
However, while job losses are increasing in the copper
and diamond sectors, many workers are moving
over to the burgeoning
uranium sub-sector, which is continuing to power ahead.
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