INTRODUCTION TO Namibia

Namibia is a world-class producer of rough diamonds, uranium oxide, special high-grade zinc and acid-grade fluorspar, as well as a producer of gold bullion, blister copper, lead concentrate, salt and dimension stone. A number of world-class companies using state-of-the-art mining and processing technologies have operations in Namibia. Namibia is the world’s fourth largest uranium producer.

Mining products produce up to 50% of Namibia’s annual export earnings. Although the mining industry plays a vital role in Namibia’s economy, the mining sector has experienced a decline in growth over the past few years. This has mainly been as a result of several mining ventures closing down due to diminishing ore reserves and low commodity prices. Namibia’s mineral wealth is still underexplored in comparison to the more popular West African mining countries, it offers good mining opportunities. The political atmosphere is stable and the Namibian government ahs put in place attractive incentives to encourage investment in the country’s mineral industry.

INVESTMENT OPPORTUNITIES

Namibia offers investment opportunities in various areas and sectors. The country boasts an impressive rating as a competitive investment location

Besides its continuous ranking among the five most competitive economies in Africa by the World Economic Forum, it also achieved a positive rating from the 2006 Fitch Ratings and a B category Country Risk rating B by the London-based Economic Intelligence Unit, the highest score achieved in sub-Saharan Africa. Political stability, good governance and the respect for the rule of law, investment-friendly legislative and regulatory framework, competitive incentive regimes, a low crime rate and world-class physical infrastructure round off Namibia’s attractiveness for business and investment.

Namibia’s Foreign Investment Act of 1993 provides investors with guarantees in respect of investment security, free repatriation of capital and profit, access to foreign currency and international arbitration in case of dispute.

Namibia enjoys preferential access to a number of bilateral, regional and multilateral markets and trade arrangements. She is a WTO member and has duty and quota free access to the US and European markets through the Africa Growth and Opportunity Act and the Cotonou Agreement, respectively. Namibia is strategically located as an ideal springboard into the regional markets of the Southern African Customs Union (SACU) and Southern Africa Development Community (SADC).

EXPLORATION POTENTIAL

The germanium project entails the extraction of In, Ge, Ga and Pb as enriched flue dust for sale and subsequent hydro metallurgical treatment for metal recovery. These metals are to be recovered from two slag dumps at the Tsumeb smelter complex. The slag dumps contain in excess of 2.2 million tons of material containing Zinc (9.02%), Germanium (350ppm), Gallium (200ppm), Indium (170ppm), Lead (2.05%), Copper (0.35%), Arsenic (0.30%), Molybdenum (0.25%), Iron (22.0%), Silver (5ppm), Silica (26.0%), Alumina (4:0%) and Lime ((9.02%).

Uis is located 123 km west of Omaruru and 120 kilometres north-east of Henties Bay. The TransKalahari tarred road and the main railway line are about 100 kilometres south of Uis. Over N$ 1.6 million has been spent on the exploration of the area and also in assisting the unemployed small miners of Uis. Funds were provided by various donor agencies. Presently limited small-scale mining continues and the ore is transported by road to the small plant in Uis where water is available. Namibia Small Miners’ Assistance Centre (NSMAC) also investigates the possibility of the on site dry separation process, to reduce transport costs of the low-grade ore to Uis. NSMAC seeks funds to the amount US$ 0.5 million from donor agencies or a possible joint venture partner to: carry out further exploration work to define more resources, conduct a feasibility study, and provide additional mining and processing plant equipment and also to provide initial working capital.

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COMPANIES MINING IN Namibia


LEGISLATION & MINING POLICY OVERVIEW

Namibia’S ECONOMY

The latest official statistics show that Namibia’s mining sector generated N$7.7 billion (US$912 million) of value added during 2009, contributing 10.0 percent towards the country’s Gross Domestic Product (GDP) of N$77.8 billion (US$9.2 billion).

In 2009 Diamond mining delivered N$2.8 billion (US$333 million) while other mining and quarrying produced N$4.9 billion (US$584 million).


Exports from the mining sector reached N$10.9 billion (US$1.3 billion) during 2009. Mineral-related exports accounted for 44 percent of Namibia’s total merchandise exports