Ester Mbathera
Xinfeng Investments is facing criminal investigations after being caught red-handed mining illegally in the Uis area of the Erongo region, on 16 November.
The mines ministry has also ordered the company, which recently commissioned its N$600 million processing plant, to cease all operations at EPL 8397.
Residents and conservancies in the Uis area protested against Xinfeng’s alleged illegal mining.
The EPL in question, located at Ringmen, was granted to Orange River for the exploration of dimension stones, base and rare metals, industrial minerals, and precious metals.
Orange River is a joint venture between Longfire Investment, which holds 15%, and Xinfeng Investments, which owns 85%.
Mining commissioner Isabella Kandjii-Chirchir conducted an unannounced visit to the site and found Xinfeng allegedly conducting mining activities despite only holding an exploration licence.
Kandjii-Chirchir immediately ordered the company to halt operations.
However, according to media reports, Xinfeng only complied on December 10 and claimed to have received no official communication about the directive.
Apologies and operational changes
Xinfeng has since admitted guilt and issued a public apology.
“We sincerely hereby tender our utmost apology, and this has never been our model for business conduct,” stated Xie Yiming, the director of Xinfeng, in a letter addressed to the ministry.
Xinfeng described the overstep because of internal mismanagement discovered during an investigation launched after operations were suspended.
The ministry’s intervention, prompted by what the company called “high levels of conflict at their mining operations,” led to the temporary closure of the site.
“We tender our most sincere apologies. This has never been our model for business conduct, but this incident has introduced a number of key changes in our way of work,” Yiming said.
He added that the suspension of operations and delays in regulatory approvals have placed the company in a difficult financial position.
Ministry investigates
The ministry, through its executive director, said yesterday in a statement that concerns raised by the public regarding alleged illegal mining activities by Xinfeng Investments in the EPL area, harmful environmental effects, and desecration of ancestral graves are being addressed.
“The ministry wishes to underscore that the licence granted to Orange River is for prospecting to assess the potential for commercial mining.
The main activity to be carried out on the EPL is exploration, not mining,” the statement reads.
The ministry said that prior inspections and public concerns prompted the mining commissioner to make an unannounced visit to the site on 16 November 2024.
The inspection confirmed the presence of mining activities at a site authorised only for exploration.
“The office of the mining commissioner directed the immediate cessation of all mining operations by the company in the EPL 8397 area,” the statement adds.
A meeting held earlier this month summoned Xinfeng’s executive management to the ministry to account for the illegal activities.
During the engagement, Xinfeng’s directors admitted to unauthorised mining activities in violation of the exploration licence conditions.
“Unauthorised mining by an exploration licence holder constitutes a violation of licence conditions and is subject to penalties. In this case, the violation warrants an investigation by law enforcement. Accordingly, the mining commissioner has reported the case to the Namibian police, and investigations are underway,” the statement says.
At the same time, the ministry invoked penalties provided under section 3(1) of the Minerals (Prospecting and Mining) Act for unauthorised mining activities, pending the conclusion of investigations.
The ministry emphasised that Xinfeng will be held accountable for its actions and inactions.
It ordered the immediate cessation of all mining activities and assured that the company would be closely monitored.
“The ministry assures the public that this incident is receiving the utmost attention. Based on the investigation findings, appropriate and proportionate actions will be taken for any violations of the exploration licence conditions, including those related to the environmental clearance certificate,” the statement concluded.
The ministry also urged the public to allow ongoing investigations to conclude, stressing that this incident serves as a warning to all licence holders that any abuse will face the full force of the law.
