Namibia’s mining sector has demonstrated resilience and growth in 2024, adding more than 2,600 new jobs despite a slight contraction in overall output, according to the Chamber of Mines of Namibia’s Annual Review for 2024. The sector, which remains a cornerstone of the national economy, contributed significantly to employment, local procurement, and government revenue, even as it navigated challenges such as declining diamond prices and global economic uncertainties.
The mining industry’s direct employment figures rose to 20,843 in 2024, marking a 14.6% increase from the previous year’s 18,189 jobs. This growth underscores the sector’s critical role in job creation, particularly in a country where youth unemployment remains a pressing issue. The total wage bill for the industry reached N$7.976 billion, up from N$6.85 billion in 2023, reflecting higher salaries and an expanded workforce. Employees contributed N$1.695 billion in Pay-As-You-Earn (PAYE) taxes, further bolstering government coffers.
The uranium and gold sub-sectors were standout performers, driving much of the employment growth. Langer Heinrich Uranium, which resumed operations in early 2024, and Swakop Uranium’s Husab Mine, the world’s second-largest uranium producer, played pivotal roles. Swakop Uranium alone employed 1,593 permanent staff and 2,259 contractors, while B2Gold’s Otjikoto Mine and Navachab Gold Mine also expanded their workforces. Notably, Navachab achieved record gold production, further solidifying gold’s position as a key contributor to the sector’s stability.
Local procurement by mining companies reached N$23.944 billion, accounting for nearly 47% of the industry’s total revenue. This emphasis on sourcing goods and services from Namibian businesses has strengthened small and medium enterprises (SMEs) and fostered economic inclusivity. Debmarine Namibia, for instance, spent N$2.2 billion locally, while Sinomine Tsumeb Smelter directed 83.6% of its procurement to Namibian suppliers.
However, the sector faced headwinds, particularly in diamond mining, where production fell by 6.3% due to weaker global demand and competition from lab-grown diamonds. This decline contributed to a 1.2% contraction in the mining and quarrying sector, a stark contrast to the 19.3% growth recorded in 2023. Despite this, mining’s contribution to Namibia’s GDP stood at 13.3%, down slightly from 14.8% the previous year.
The Chamber of Mines highlighted the uranium industry’s resurgence as a bright spot, with rising global demand for nuclear energy driving development. Two new uranium mines and a potential restart of the Trekkopje Mine are expected to further bolster the sector in the coming years. Gold production also saw a 2.7% increase, buoyed by record output at Navachab and favourable prices.
Corporate tax payments by mining firms fell by 24.2% to N$3.008 billion, largely due to reduced diamond sales. Royalties and export levies also declined, with total tax contributions dropping by 18% to N$5.624 billion. Nonetheless, the sector’s exploration expenditure surged by 66.7% to N$1.485 billion, signalling confidence in Namibia’s mineral potential.
Safety remained a priority, though the industry recorded one fatality at Rössing Uranium’s solar plant construction site. Lost Day Injuries and Disabling Injuries increased by 26.3% and 12.3%, respectively, prompting calls for stricter adherence to safety protocols. The Chamber’s Health & Safety Committee completed a review of regulations, set to replace outdated 1968 standards, with broader stakeholder consultations planned for 2025.
Looking ahead, the Chamber emphasised the need for policy clarity, particularly on the Draft Minerals Bill and government free-carry shareholding proposals, to ensure long-term sector sustainability. Infrastructure challenges, especially water security, and skills development initiatives to address youth unemployment were also flagged as key focus areas.
Zebra Kasete, President of the Chamber of Mines, praised the sector’s resilience and its role in Namibia’s socio-economic development. “The mining industry remains the backbone of our economy,” he said. “While challenges persist, the opportunities ahead—particularly in uranium and critical minerals—position Namibia for continued growth and global competitiveness.”
As the sector evolves, its ability to adapt to market fluctuations, invest in local communities, and uphold sustainable practices will be crucial in maintaining its pivotal role in Namibia’s economic future.