Govt gets 61% of Otjikoto’s profit as closure looms

B2gold Namibia paid 61% of its N$4.1 billion pre-tax profit to the government in 2024 as the Otjikoto gold mine approaches closure.

The company achieved record revenue of N$8.8 billion from its Otjikoto mine last year, and paid N$2.5 billion to the government as corporate tax, royalties, export levies and non-resident shareholder tax of 5%.

This was said by B2Gold Namibia country manager and director John Roos in Windhoek on Monday.

He highlighted the company’s corporate social responsibility initiatives as the mine heads towards closure.

“We all know a mine starts and closes at some time, but B2Gold wants to leave Namibia, the Otjozondjupa region, and the mine site in a better state than we found it,” he said.

Roos said the Otjikoto mine produced 198 000 ounces of gold last year, contributing to the Canadian company’s total annual consolidated global production of 804 778 ounces.

“We look forward to producing 175 000 ounces in 2025. This means a significant contribution to government, as well as our corporate social responsibility initiatives,” Roos said.

He said the mine made a N$4.1 billion profit before tax in 2024 and 57% went to the government.

“That does not include our corporate social responsibility initiatives or indirect taxes, and when we add these, we get 61% of profit before tax going to the government,” he said, dismissing the notion that mining companies do not pay taxes.

Roos said over the past 10 years B2Gold moved from 100% dependency on environmentally unfriendly and costly diesel fuel to generate electricity to inaugurating the first solar plant in 2018, which provided 13% of the required energy.

“In September 2022 we connected to the NamPower grid and weaned off fossil fuel.

That was a N$200-million investment, which reduced our low-grade processing costs significantly,” he added.

The mine also negotiated with Sustainable Power Solutions for another 10 megawatt, N$200-million solar plant.

“In six years, Otjikoto mine helped leverage a N$400-million investment onto Otjozondjupa.

These assets will continue benefiting Namibia beyond the mine’s closure, pumping green energy back into the grid,” Roos said.

He said B2Gold has also spent US$16.6 million (N$320 million) on education, health, environment and livelihood up to the end of 2024.

“We invested in long-term sustainable projects like the Ombili Clinic and Ombili Primary School at Otjiwarongo to accommodate 1 500 pupils when completed, and also invested in Otavi water reticulation projects,” he said.

Roos said some assets – 18 000ha on which the mine sits, the solar plant, and a nature reserve with a variety of animals and plant species – will be turned into businesses that will continue funding social responsibility initiatives.

“Last year, we were the largest private producer of maize, with 1 000 tonnes delivered to Namib Mills, and we expect 1 500 tonnes in 2025,” he said.

This is in line with president Netumbo Nando-Ndaitwah’s call for increased food production, sustainable energy production, and employment creation, Roos said.

Eric Barnard, the mine’s general manager, said after downsizing, Otjikoto Mine will have 400 workers for the underground and low-grade stockpile operations. The mine currently has about 700 employees.

“Up to the end of 2024, we had made 179 positions redundant by putting a freeze, and to date another 138 people have been retrenched.”

– email: matthew@namibian.com.na

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