‘Mining opportunities go beyond ownership’

The Namibia Investment Promotion and Development Board (NIPDB) says local participation in Namibia’s mining sector goes beyond simple ownership of mining licences.

Speaking at a critical minerals dialogue at Swakopmund on Tuesday, NIPDB analyst Andreas Salom said companies are not looking broadly enough at the opportunities available for participating in the mining sector.

“Opportunities are there throughout the life cycle of the mine,” he said.

“During exploration, there is drilling, surveying and sampling,” he said, adding there are opportunities in logistics, providing services for running operations, and offering plant maintenance services.

“One way we can [expand participation] is procurement. Everybody talks about procurement – in Namibia we like procurement,” Salom said.

However, the Namibian system is not well set up for developing Namibian companies to make full use of the local content requirements mines have to meet when it comes to procurement.

In many cases, Namibian entities are not aware of tenders or not developing their capabilities to match the opportunities mines advertise, Salom said.

“It doesn’t make sense [when mining companies] put up big advertisements in the newspaper. Each and every year, [small companies] apply, and each and every year [they’re] not getting it. [The question is] are we developing their capacity?” he asked.

Government institutions need to develop the capability to provide mentorship or certification opportunities to allow Namibian companies to grow, he said.

“I want to highlight the supplier path, from demand to repeatable contract. It doesn’t make sense for me [as an investor] to develop a local company, give them a contract, and then next year they disappear.”

Beyond local procurement, he said the local communities can benefit from mining through shared infrastructure or development projects for the community.

“We should be accountable for public revenues. [When the government earns] taxes and royalties, are they being used for the right things? Communities should benefit,” Salom said.

Speaking at the same conference, Erongo governor Natalia |Goagoses said when a new mine opens, communities want to know what it will mean for them.

“Mining takes place within communities and within an environment on which other activities depend. We need to exploit economic opportunities while protecting the environmental assets and livelihoods on which communities depend,” she said.

The governor said consultation must happen with communities before decisions are made to allow them real input and the opportunity to shape how mining in their areas can benefit.

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