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7/31/2019 1.Mining Industry Performance during 2011 & Role of Mining in the Namibian economy- Robin Sherbourne.pdf
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Key Events Since Mining Expo 2011
Ohorongo Angola import ban and application for IIP MoF tax proposals in July
OPM policy announcement on New Equitable Economic Empowerment
Framework (NEEEF) in October
Environmental regulations under Environmental Management Act 2007
passed and Environmental Commissioner appointed Epangelo deals with NRE, Bannerman and Extract
Joint GRN-CMN Tax and Value Addition Committees
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0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1990 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
Mining Value Added in Current Prices (N$m)
Other mining
Diamond mining
Source: National accounts, Central Bureau of Statistics
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0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
1990 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
Mining Value Added as Percentage of GDP
Other mining
Diamond mining
Source: National accounts, Central Bureau of Statistics
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0%
1%
2%
3%
4%
5%
6%
7%
8%
1990 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
Mining Fixed Investment as Percentage of GDP (includes exploration expenditure)
Source: National accounts, Central Bureau of Statistics
3.1%
5.1%
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0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
Fixed Investment (N$m)
Government Mining Source: CBS
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0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
'93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10
Mining Exports (N$m)
SHG zinc
Other minerals
Blister copper
Metal ores (including uranium)
Rough diamonds
Source: National accounts, Central Bureau of Statistics
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- 500 1,000 1,500 2,000 2,500 3,000
AREVA
DBMN
NamdebLanger Heinrich
Navachab
NCS
Ohorongo
Okorusu
Rosh Pinah
Rossing Uranium
Salt & ChemicalsSalt Company
Samicor
Skorpion
Weatherly Mining
Auryx Gold
Bannerman
Craton
Gecko
Otjozondu
Reptile Uranium
Rio Tinto
Swakop Uranium
Valencia
NIMT
Employment in Mining Sector at end 2011
Total employment more than 14,000
( as big as fishing and SOEs)
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Key Numbers for Mining Sector in 2011
Turnover > N$15.8bn
Profits > N$1.7bn
Wages and salaries > N$2.5bn
Fixed investment > N$1.3bn
Exploration spending by operating mines > N$404m
Exploration spending by exploration companies > N$348m (AuryxN$91m, Bannerman N$60m, Reptile N$78m, Extract N$49m)
Profits tax paid > N$884m
Mineral royalties paid > N$867m
7,034 permanent employees, 590 temporary employees, and 6,190contractors
Rssing Uranium made loss of N$471m in 2011 (royalty 6%)
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0
1,000
2,000
3,000
4,000
5,000
6,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Uranium Production (tonnes)
Langer Heinrich
Rossing
Source: Rio Tinto, Paladin Energy
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19,451
9,145
5,983
4,351
3,258
2,993
2,500
1,537
0 5,000 10,000 15,000 20,000 25,000
Kazakhstan
Canada
Australia
Niger
Namibia
Russia
Uzbekistan
United States
Uranium Producing Countries* (tonnes of contained U mined in 2011)
Source: World Nuclear Association *only includes countries producing more than 1,000t
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Conclusions
Mining sector emerged well from crisis with most
main projects intact (uranium delicately poised) Easily most dynamic sector of economy investing
more than any other sector
Attracting full spectrum of international investors
Junior miners and stock exchanges playing criticalrole
Investors highly sensitive to Namibian policypronouncements
Mining to face new taxes, environmentalregulations, NEEEF, NT Levy, power and watercosts
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Robin Sherbourne
Namibian Economics
robin@namibianeconomics.com
PO Box 86058
Windhoek
Namibia
mailto:robin@namibianeconomics.commailto:robin@namibianeconomics.com