The Mining Sector in Namibia 2023

Challenges

Global growth is expected to slow in 2023, affecting demand for minerals in general. Input costs are high, mainly due to high electricity, fuel, and water prices. Lack of specialised skills. Water supply interruptions, especially in the Erongo region where the uranium mines are.

Introduction

Namibia’s mining industry grew strongly in 2022 in turnover and share of GDP. This was largely due to a 44% growth in diamond production. Exploration expenditure increased in line with growing interest in Namibia’s critical minerals, due to the global energy transition, and uranium, where a supply deficit is forecast. Challenges include water supply interruptions, especially around uranium mines, and high input costs.

Opportunities

Demand for critical minerals is increasing rapidly as the global energy transition advances. Elevated uranium prices because of the impact of the Ukraine war and a forecast supply deficit. Western countries want to reduce their dependence on China for critical minerals, especially rare earth elements, and are looking for supplies from other countries.

Outlook

Prices of most minerals are set to decline in 2023, but critical minerals will be the exception as the global energy transition advances. Uranium prices are set to rise due to demand outpacing supply. De Beers expects lower short term demand for diamonds, but higher prices in the medium term as supply decreases. The Chamber of Mines of Namibia expects the country’s mining industry to grow, largely due to the anticipated development of deposits of several critical minerals and the forecast uranium supply deficit.

Report Coverage

This report on the mining industry in Namibia includes information on the size and state of the mining industry, major mining activities and minerals, notable companies, exploration and project developments and corporate actions. There are profiles of 19 companies including diamond producers De Beers Marine Namibia and Namdeb Diamond Corporation, uranium miners such as Rössing Uranium and Swakop Uranium, cement manufacturers such as Ohorongo Cement, zinc miner Rosh Pinah and copper miner Trigon MiningTrends Exploration expenditure is rising, largely due to increased interest in critical minerals and uranium. Namibia’s minerals are mostly exported in semi-processed or unprocessed form.