Chamwe Kaira
Namibia’s mining sector contracted by 9.4% in 2025 due to lower diamond output, reduced metal production and weaker global demand but still generated N$64.18 billion in sales revenue.
Launching the 2025 Chamber Annual Review in Windhoek, Chamber of Mines chief executive Veston Malango said the sector remained a key part of the economy despite global pressures such as geopolitical tensions, slower trade and uneven growth in major economies.
Mining contributed about 14% to Namibia’s gross domestic product, remaining the largest contributor among primary industries.
Malango said production trends varied across commodities, with uranium and gold supporting the sector while diamonds and most base metals declined.
“Strong uranium growth followed the restart of Langer Heinrich, while gold production also increased modestly. Diamond production declined amid weaker global demand, while base metals contracted except for tin. This shows that diversification towards uranium and gold is becoming increasingly evident,” he said.
Despite lower output, the sector’s financial contribution increased. Sales revenue rose by 25% to N$64.18 billion, driven by higher gold prices and increased uranium production.
The government’s revenue from mining increased by 39%, reaching N$7.8 billion through taxes, royalties, and export levies. Royalties reached N$2.46 billion, while export levies rose by 90% to N$685 million.
Malango said the sector remains important for state revenue, with gold and uranium offsetting weaker diamond performance.
Local procurement remained high. Mining companies spent N$23.97 billion on discretionary local procurement and N$2.83 billion on non-discretionary procurement.
About 65% of procurement spending stayed within Namibia.
Wages and salaries paid to employees totalled N$6.46 billion. Taxes and royalties amounted to N$7.12 billion, while other operating costs stood at N$13.85 billion.
Malango said strong local spending supports small businesses and strengthens supply chains.
Exploration spending increased by 22% to N$1.496 billion. Mining companies contributed N$671 million, while exploration firms spent N$819 million.
Fixed investment rose by 31% to N$7.46 billion, driven by mine development, expansion projects and equipment replacement.
Malango said rising exploration and investment point to future growth in uranium, gold, copper and other minerals.
He warned that Namibia’s attractiveness to investors has declined. The latest Fraser Institute survey shows the country’s ranking dropped from 30th out of 82 jurisdictions to 51st out of 68, while its African ranking fell from fourth to seventh.
Malango linked the decline to policy uncertainty and concerns about local ownership requirements.
“Restoring policy certainty is critical to maintaining Namibia’s competitiveness for mining investment. The sector is resilient and well positioned, but sustained investment will depend on a stable and competitive policy environment,” he said.
The Chamber said the sector remains strong, with gold and uranium helping to offset volatility in diamonds, while increased exploration and investment support future growth.
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Veston Malango
