Government Wants More Minerals To Be Processed Locally

The Ministry of Industries, Mines and Energy (MIME) wants more minerals processed in Namibia, naming copper, salt and dimension stone as areas where the country can add value instead of exporting raw materials, MIME's Deputy Executive Director, Erasmus Shivolo said on Tuesday.

Speaking at the Development Partners Forum in Windhoek, Shivolo said the government’s beneficiation strategy, launched in 2021, was intended to expand activities across the mining value chain, from exploration to manufacturing.

“We really want to go 360 degrees from exploration all the way to manufacturing,” Shivolo said.

He said copper was among the minerals already identified as an opportunity for local processing. Salt mining offered potential to recover other minerals from brine, while dimension stone, including granite and marble, could also be cut and polished locally for use in construction and infrastructure.

“The message from the President is to create sustainable and decent jobs for our citizens,” he said.

Shivolo said the President had directed the ministry to develop a mineral beneficiation policy to support the implementation of the strategy.

He said the first draft was already presented last week, with the ministry expected to finalise the policy before the middle of next year.

He said the proposed Minerals Bill, which will replace the Minerals (Prospecting and Mining) Act of 1992, had already been shared with stakeholders, some of whom had submitted comments.

Shivolo said the 2024 draft includes provisions on beneficiation, local ownership and financial assurance for rehabilitating mining sites after operations end, and the ministry had also been instructed to make the Bill law in 2027.

On restrictions on the export of unrefined minerals, Shivolo said the decision was taken in 2023 and applied to strategic minerals.

He said it was a directive to certain mineral rights holders, not a law, and the ministry wanted the restriction to become law.

“We want local beneficiation,” he said, adding that exports for research, testing mineral content and grades, and determining plant design parameters would still be allowed in small quantities.

Furthermore, the Chamber of Mine's Senior Economist, Lauren Graham said the restriction was necessary to encourage long-term investment in mineral development.

“When looking specifically at that restriction, I think it was a necessary thing for the Ministry to do,” Graham said.

She said Namibian miners could commit to making their processed minerals available to businesses established locally.

Graham said expanding beneficiation would also depend on access to affordable infrastructure.

“We need the necessary water and electricity available at a competitive price, as well as the supporting logistical infrastructure, among others,” she said.