Namibia MiningIn Namibia mining is one of the major industries of the country. Namibia is known globally for its uranium and diamond deposits. Indeed, Namibia is the world’s sixth largest producer of uranium and among the largest gem quality diamond producers in value terms. It is also one of the leading nations when it comes to zinc, copper and lead reserves.
The Anglo American’s Scorpion Zinc mine was established at Rosh Pinah near Luderitz in 2003 and the Langer Heinrich Uranium mine was opened by Australian’s Paladin Resources in Swakopmund in 2006. The South African Development Community SADC 2007/2008 reports that over the past few years, Ongopolo Mining and Processing Limited have successfully turned a liquidated copper mine into a profitable venture, and is forging ahead with several more projects. AngloGold’s Navachab, Namibia’s sole gold-producing mine, has had a pit extension programme approved, extending the life of operations significantly. The Rossing Uranium Limited near Arandis in Erongo Region is also extending its operational life. Rossing Uranium Limited is a major player in the Namibian mining industry. Their large open-pit uranium mine started in 1976 is engaged in a major re-evaluation to sustain the life of the mine to the year 2021 and maybe beyond. Commitment to International Organisation for Standardisation (ISO 14001) certification ensures that its environmental management system conforms to best standards and practices, to minimise the impact of the mine’s activities on the environment within which it operates.
Namibia is a major producer of gem-quality diamonds with around 98% being gem quality. Diamonds are mined along the Orange River, palaeo-beach deposits along the south western and western coast of the country, as well as from offshore marine deposits. Namibia’s offshore marine deposits are the world’s richest, with an estimated reserve of over 1.5 billion carats. The largest diamond mining company in Namibia is Namdeb, a partnership with De Beers and the Namibian government. Namibia has a well developed legislative framework governing the upstream and downstream oil business. There are eight companies exploring for oil and gas but so far development has been slow. The government encourages foreign investment with easy-going procedures for international oil companies wanting to explore both onshore and offshore permits. So far, it has been relatively limited despite positive geologies for the discovery of hydrocarbons.
NAMCOR, Namibia’s state oil company with the government as sole shareholder, plays a major role in the country’s petroleum business both up and downstream. The term “downstream oil sector” is commonly used to refer to the refining of crude oil as well as the marketing and distribution of petroleum products derived from crude oil. NAMCOR’s involvement in the downstream sector currently only involves importing of petroleum products into Namibia and supplying to oil marketing and distribution companies.
The exploration for natural gas resources has been more quickly rewarded. Natural gas was discovered in 1974vin the Kudu Field off the mouth of the Orange River. The field is tough to contain reserves of over 1.3 TCF. The Kudu gas field development is led by Tullow Oil Plc. Tullow Oil owns 70% of the Kudu gas fields, Japanese firm Itochu Corporation owns 20% and the Namibian Government owns the remaining 10%. The government is understandably keen to see the commercial development of the Kudu gas fields and the Namibia mining as a whole.
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