Namibian mining industry ripe for expansion

The foundations have been laid for the future expansion of the Namibian mining sector, says Transworld Cargo’s business development manager, Frank Gschwender. “There’s plenty of activity on the mining front in the country thanks to its wide range of mineral deposits ranging from diamonds, gold, uranium, zinc and fluor spar to lead concentrate, manganese and blister copper – and that diversity helped in times of global economic uncertainty,” said Gschwender. “The commodity prices in 2011/2012 were a mixed bag of good and bad news with gold and copper on the high side and uranium on the low side of the scale,” he told FTW. “But the country is on track when it comes to mining. The Gecko Group, for instance, recently received government approval for its ‘Vision Industrial Park’, a chemical plant complex complemented by a bulk terminal port to be developed on a 700-ha area north of the coastal town of Swakopmund.” Gschwender said this visionary plant would produce sulphuric acid primarily for the uranium mines and, as by-products, desalinated water and up to 30 MW of electricity. “The group is also busy with engineering work for developing Namibia’s first graphite mine, with planned production as from 2014.” “If one looks at everything that is happening it is clear the dominant macroeconomic role of mining in Namibia will continue if not expand,” he said. But he believes a major challenge remains the government stance on mining. “A number of policy initiatives ranging from a new income tax regime to the New Equitable Economic Empowerment Framework as well as a Strategic Minerals Policy have raised international concerns regarding a future ‘conducive environment’ for the Namibian mining sector.” He said the policy of ‘government wanting a fair share’ had been countered by the industry’s feeling of ‘government is already getting too much’. The two parties are in discussions. He said despite these challenges Transworld Cargo remained optimistic about the mining sector. “We are an associate member of the Chamber of Mines serving mining operations both in Namibia and the region, including the Copperbelt of Zambia and the DRC. CAPTION Frank Gschwender … A major challenge remains the government stance on mining.’