Mining contributes N$7.8b to Govt coffers

Namibia’s mining sector paid a total of N$7.8 billion in taxes to the government in 2025, recording a 39% increase from N$5.6 billion in 2024.

This was said by the president of the Chamber of Mines of Namibia, George Botshiwe, in a mining industry review presented at the chamber’s annual general meeting, attended by minister of industries, mines and energy Modestus Amutse on 21 May.

“This growth was largely driven by corporate income tax from gold mining operations, B2Gold and Navachab Gold Mine, reflecting both strong production and favourable gold prices,” Botshiwe told the annual general meeting.

In addition, he said royalties amounted to N$2.5 billion, representing a 9% increase, while export levies rose sharply to N$685 million, reflecting a 90% increase compared to the previous year.

Botshiwe said corporate income tax from diamond mining operations is expected to decline, while revenue from non-diamond mining, particularly gold, uranium and base metals, is projected to increase significantly.

“These trends suggest a gradual evolution in Namibia’s mining revenue base, with gold and uranium increasingly emerging as key contributors to government revenue,” he said.

Botshiwe said Namibia’s mining sector experienced a contraction of 9.4% in real value added in 2025, compared to a contraction of 3.7% in the previous year.

This decline was largely driven by reduced output in diamond mining, metal ores, and other mining and quarrying, which outweighed the strong 27% increase in uranium production recorded during the year.

“Despite this contraction, mining continues to remain the pillar of Namibia’s economy, contributing about 14% to national gross domestic product in 2025 and maintaining its position as the largest contributor within the primary sectors,” he said.

Production data showed strong operational performance across several commodities in 2025.

Botshiwe said uranium recorded the strongest growth, increasing by 20.8%, largely due to the restart of the Langer Heinrich Uranium Mine, which significantly boosted national output.

Additional contributions came from improved operational performance at Rössing Uranium Mine and Husab Mine.

“This growth reinforces Namibia’s position as one of the world’s leading uranium producers, at a time when global demand for nuclear fuel continues to rise,” Botshiwe said, adding that gold production increased by 1.9%, supported by strong operational performance at B2Gold Otjikoto Mine and Navachab Gold Mine.

In contrast, diamond production declined by 5.6%, reflecting ongoing weakness in global diamond markets.

Botshiwe said total direct employment by chamber members declined slightly to 20 798 employees, largely due to retrenchments and voluntary separations at the Sinomine Tsumeb Smelter and Debmarine Namibia.

He, however, said contractor employment increased significantly, driven by development activities at major projects such as the Twin Hills gold (Osino), Etango uranium and Tumas uranium projects.

“In 2025, all chamber members collectively employed 8 201 individuals in permanent positions. Of these, only 219 positions were filled by expatriates, meaning 97% of permanent positions are held by Namibians,” he said.

In 2025, the industry spent about N$23.97 billion on locally sourced goods and services, representing 65% of total procurement expenditure and 37.4% of total mining revenue.

“This high level of local procurement supports small and medium-sized enterprises, strengthens domestic supply chains, promotes value creation within Namibia, and sustains employment across multiple sectors of the economy.

“These strong linkages demonstrate that mining is not only a driver of export revenue but also a key catalyst for broader economic development across Namibia,” Botshiwe said.

– matthew@namibian.com.na

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المصدر: The Namibian