Namibia readies for mining industry upturn

Namibia is gradually taking its rightful place in the mining and minerals industry as its corridors become more competitive and its logistical efficiency increases. The mining industry started to recover during the third quarter of 2009 and expectations and indications are that 2010 is going to bring about some real opportunities, says Philip Coetzee of Manica Namibia business development. “There are substantial opportunities for Namibia as the origin or transit route for commodities like uranium, copper, coal, and manganese. Project and abnormal cargo for new plants and mining equipment for Namibia as well as other SADC countries discharged in Walvis Bay are becoming more frequent and bode well for the future,” says Coetzee. And with their vast mining knowledge and the increasing availability of infrastructure to handle these types of cargo, Namibians are grabbing the opportunities coming their way. Says Coetzee: “Namibia has been fortunate in that its logistics infrastructure is also utilised for cargo destined for neighbouring countries like Angola, Zambia, Botswana and the Democratic Republic of the Congo. Trade volumes moving into these countries showed a decline during the earlier part of 2009, but since the third quarter of the year an increase has again been experienced.” Namibia, like the rest of the world, was not immune to the world economic crisis that saw a downturn in prices, crashes in stock prices and major reductions in the demand for commodities. This in turn resulted in several expansion plans being delayed, budgets revisited and new projects put on hold. “During the recession the focus definitely turned to cost management,” said Coetzee. “The challenge in the near future will be to secure contracts for current projects, but more importantly expansion or new projects. Funding is still difficult to obtain as share issues fund most of the new projects from new companies. The current value of shares linked with market perception makes this one of the more challenging issues in the industry.” Coetzee says sustainable and costeffective supply chain solutions for both imports and exports need to be tied up as the synergy between these two can lead to substantial savings in the industry. “The vital link is the balance between commitment from the mining houses and infrastructure development by the service providers.”