Namibia eyes mining sector growth

[miningmx.com] — NAMIBIA expects investment of $3.5bn in its mining sector over the next five years, with the industry accounting for 15% of its economic output, a minister said Wednesday.

“The mining sector informed us that advance projects, those either committed to or under construction are estimated at 24 billion Namibia dollars,” Mines and Energy Minister Isak Katali told lawmakers as he tabled the budget for his ministry.

“Mining contributed about 15% to Namibia’s GDP in the previous financial year (to March 2011)” and accounted for more than 50% of export earnings, Katali said.

The minister said that the recently established state mining company, Epangelo Mining, would be given a competitive advantage.

“Cabinet recently approved a submission to declare uranium, copper, gold, zinc and coal as strategic minerals with a view of allowing the exclusive exploration and mining of these minerals by the state mining company.”

This means that any other mining company intending to mine these newly declared strategic minerals would have to “do so jointly with Epangelo Mining”, Katali told AFP.

Namibia is the world’s fourth largest uranium producer, with three mines operating and at least one more, owned by Areva of France, starting production next year.