Glancing through the publication several questions may come to mind. Let us try and provide some Namibian context to it and how our mining industry is performing compared to the global mining industry. As such please find below some context for the Namibian mining industry.
Of the top 40 global mining entities analysed 4 of them has some level of operations in Namibia. Some of the local entities are only in an exploration phase and others have fully fledged operations in Namibia. Considering the local mining industry as a whole and not limiting the focus to the operations of the top 40 global mining entities we find that Namibia is in actual fact well positioned to counter the impact of lower commodity prices and the reduction in export revenue experienced by other African countries.
Much has been said about the slowdown in the Chinese economy and its consequent impact on the global economy. Locally, in Namibia, the mining industry has been resilient in the face of the global downturn as Namibia's mining industry has experienced positive growth over the past few years including the calendar year of 2015. The industry has not been without its challenges as some mining operations have been suspended during 2015 with retrenchments affecting various Namibian households. However, the challenges has been offset by various foreign investments made in the recent past. As such, the industry has created more jobs than it has lost in the last 3 years.
Some of these investments such as Bannerman's Heap Leach Demonstration Plant, DebMarine's intention of the construction of a deep-water diamond exploration plant, B2Gold's Otjikoto's gold mine and Weatherly's Tschudi copper mine ramping up to full production, Ohorongo Cement's Special Composite Cement Plant, Dundee's sulphuric acid plant and Lodestones production of the first tonne of iron ore in Namibia's history have come to fruition during 2015 and others will do so in the near future.
The future success of our mining industry will largely depend on Namibia's mining industry being able to remain competitive and attractive as an investment destination for exploration and mining. Also, the security of water and electricity supply may negatively impact on investors' confidence. This in turn will depend on government's policy proposals, initiatives in respect of the security of water and electricity supply as well as licensing considerations to ensure effectiveness and efficiency in years to come. For the immediate future there is still ample reason to be optimistic about the future of the mining industry and it's proposed integration with other sectors of the Namibian economy in order to be aligned with the objectives of NDP4, Harambee and ultimately Vision 2030.
Discover how we can assist your Namibian ventures in our Mining Capability Statement.
Mining and exploration prospects in Namibia present exciting opportunities for companies in the mining industry. However, these prospects also come with their share of unique challenges.
As a mining company operating in Namibia, ensuring you accurately and effectively consider concerns such as compliance with local laws, environmental policies, financial effectiveness and tax legislation is crucial as you set up business and operate here. Knowing you can leverage knowledge from business advisers with experience in the mining industry is important.
PwC's local mining professionals offer that knowledge.