Only 42% of approved mining projects in operation
Less than half of the mining projects the Namibian government has approved are in operation, prompting the state to take a tougher stance on issuing permits.Just 68 of the 162 licences approved by the country are active, mines and energy minister Tom Alweendo said at a conference in Windhoek last week.
Namibia is the world’s third-largest uranium producer and is home to deposits of lithium as well as rare earth minerals such as dysprosium and terbium, used in magnets and wind turbines. One of the most unequal nations in the world, it is seeking to better manage its resources to benefit residents and wants to seek more value from the metals and other resources it produces.
“We have become more stringent when considering mining licence applications,” Alweendo said. “Henceforth, the terms and conditions of all new mining licences shall be captured in a mining agreement that shall be negotiated between the ministry and the holder of the licence.”
Many of the licences have been awarded to applicants lacking the necessary capabilities to fulfill their exploration commitments, Alweendo said. The government will now issue permits to companies meeting minimum work programme requirements and demonstrating adequate financial and technical capabilities, the minister noted.
Namibia received over 600 new applications for exploration licences as of December 2023, with an additional 400 submitted this year, he said.
- Bloomberg