• Mining

Big business of Namibian mining

- 2022-08-30 00:00:00

Mining is big business in Namibia. So much so that the industry brought in 9,1% of the national Gross Domestic Product last year, slightly less than the 9,3% contribution the industry made in 2020. Turnover was a staggering N$32,374 billion, although this is also down from the N$33,947 billion turnover generated by Namibian mining in 2020.
Nevertheless, the industry grew by 13.6% last year, thanks to an increase in diamond and uranium production which helped mining in Namibia bounce back from a 14,9% shrinkage in 2020. Mining companies made 928,4 million in profits last year, paid out N$5,945 billion in wages and salaries, and spent N$15,297 billion on local procurement.
Altogether N$1,553 billion was forked over to government for corporate taxes, N$1,611 billion was paid in royalties and export levies amounting to N$231,7 million add up to total taxes paid of N#3,395 billion. The industry supported 15 246 direct jobs last year, up from 14 591 the year before.
Those figures don’t include N$5,592 billion spent on gross fixed capital formation, N$806,4 million for exploration, N$223,2 million on corporate social responsibility, and N$154,3 million spent on improving skills. Business on that scale breads big businesses.
Arguably the Namibian mining behemoth; grand-daddy and patriarch of them all, has to be Namdeb Holdings. Born from 115 years of diamond mining in the country, a unique equal partnership between the Namibian government and international diamond giant De Beers, and a rich natural gem-quality diamond endowment, this institution comprises multiple trend-setting and impressive individual endeavours. Namdeb Diamond Corporation, the land-based mining entity for the group, just managed to extend its life of mine to 2042.
De Beers Marine Namibia (Debmarine Namibia), the group’s marine diamond recovery organisation, deployed the N$7 billion Benguela Gem for the first time in March, expecting significant production increases as a result. The group also boasts the Namibian Diamond Trading Company (NDTC) which sells Namibian diamonds locally and international.
How big is big? Namdeb Holdings posted turnover of N$11,215 billion for 2021. The company paid government N$62 million in corporate taxes and N$958 million in royalties, as well as export levies of N$128 million through NDTC. That impressive turnover has much to thank Debmarine’s pioneering spirit and intrepid mission to recover diamonds from the bosom of the Atlantic. Last year Debmarine produced 1,136 million carats of diamonds, generating N$7,2 billion in turnover, paying wages and salaries amounting to N$848 million to 1 026 permanent employees and 37 temporary workers, including 113 expatriates. Profits before tax amounted to N$1,6 billion, with N$2,4 billion of N$6,9 billion total procurement spent in Namibia. Namdeb Diamond Corporation added N$3,085 billion to the group turnover last year, recording N$20 million in profit, and spending N$2,244 billion of its total procurement spend of N$2,815 billion, within Namibian borders. Namdeb employed 1 523 Namibians last year, and three expatriates, while 96 temporary employees worked for the beach combing sparkly-finders, and 963 contractors were appointed.
Namibia is much more than twinkly forever-gems and mining in the country is well diversified, agile and predictably regulated to benefit stability. Uranium mining testifies with the personification of die-hard mines, poster-child for continuous extraction; Rössing Uranium fast closing on the big ‘five-o’, having kickstarted operations on its open pit back in 1976.
Neighbours Husab Uranium Mine, run by Swakop Uranium, is however, the contender for the big boy title. Boasting one of the biggest uranium mines in the world, Swakop Uranium was able to generate N$6,085 billion turnover in 2021. Despite making a N$553 million loss, the China General Nuclear majority owned jumbo enjoys a ready market, and did not shy from pumping N$1,2 million into exploration. Employing 1 628 permanent employees, 1 100 contractors and 81 temporary employees including only 59 expatriates, Swakop Uranium paid N$1,121 billion in wages and salaries last year. Total procurement spend was N$5,541 billion, of which N$2,927 billion was spent locally.
Also in the running for Namibian body-builder beautiful mining organisation must be the gleaming Otjikoto goldmine of Canadian senior gold producer B2Gold. Last year B2Gold Namibia posted N$1,227 billion profit, of which shareholders enjoyed dividends of N$1,1 billion. B2Gold Namibia generated turnover of N$5,059 billion in 2021, paid salaries and wages of N$499,6 million to 871 permanent employees, 322 contractors and 51 temporary staff members, including 12 expatriates, thanks to production of 4 763 kilograms of gold bullion. Local procurement was N$2,023 billion of N$2,274 billion total procurement spent.