Amutse warns against foreign mineral control

Minister of industries, mines and energy Modestus Amutse warns that Namibia cannot continue allowing foreign investors to dominate the country’s mining sector while many Namibians remain unemployed or only hold minor roles in projects linked to their own mineral resources.

Amutse made the remarks during a meeting with residents of Uis in the Dâures constituency in the Erongo region on Friday.

He said the government must ensure the country’s mineral wealth benefits Namibians directly.

“I cannot be a minister looking at our mineral resources being in the hands of people from outside Namibia while the people of Namibia are living in poverty,” he said.

He said Namibia welcomes foreign investment, but such partnerships must create meaningful opportunities for Namibians in the mining sector.

Amutse said the ministry has observed that many Namibians who hold exploration or mining licences are not actively involved in mining operations.

“I am disappointed that when I looked at the exclusive prospecting licences and mining claims issued to our people, I do not see our people opening mines. Instead, they are only employed as general workers,” he said.

According to him, this weakens licence holders when negotiating with investors, particularly when they do not know the value of the minerals in their licence areas.

“A licence alone has no value. It only gains value when exploration is done and you know what minerals are there,” he said.

Amutse said the ministry is developing programmes to support small-scale miners and strengthen their participation in the industry.

The minister also criticised the practice where licence holders sell or lease their rights to investors while retaining only small shares in mining operations.

“I do not want to see a situation where we give you a licence and at the end of the day you only hold 2% in the mine,” he said.

Amutse added that the government may consider legislative changes if existing laws fail to protect the interests of Namibians in the mining sector.

The meeting also addressed concerns surrounding the Chinese-owned Xinfeng Investments mine near Uis, which has been the subject of disputes between community members and government regulators.

Isabella Chirchir, Namibia’s mining commissioner at the mining ministry, says the ministry halted the company’s operations at the end of 2024 after irregular activities were detected.

“When I came here at the end of 2024, we stopped the illegal operation and the police were involved. Unfortunately, the company stopped all operations,” she says.

Chirchir says the ministry has since been in discussions with the company about restarting operations, but only if certain conditions are met.

These include employing Namibian professionals such as mining engineers, mine managers and health and safety officers, as well as placing an ambulance on site, and engaging the community through corporate social responsibility programmes.

The company was also instructed to fence off areas that were illegally mined and not process material extracted during those activities.

Chirchir says the company has asked the ministry for permission to export a batch of concentrate that had already been processed before operations were halted.

Community concerns about mining activities in the area date back to 2022, when residents of Uis, Okombahe and Omatjete raised allegations of illegal lithium mining and environmental damage linked to operations associated with Xinfeng.

The company is a majority shareholder in Orange River Exploration and Mining CC, which holds an exclusive prospecting licence in the area.

The ministry suspended operations connected to the project in December 2024, following complaints about alleged illegal mining, environmental damage and the disturbance of ancestral graves.

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