The Ministry of Mines And Energy will tighten the process of issuing exploration mining licences.
This is because many issued licences are not being utilised.
According to mines and energy minister Tom Alweendo, the ministry has issued 160 mining licences but only 68 are actively being used.
He was speaking during the Mining Expo and Conference in Windhoek yesterday.
“We have seen a trend where you have a number of people having mining licences and not actually utilising them and we have become more stringent when considering applications,” said Alweendo.
According to Alweendo, the ministry has introduced a requirement for all new mining licences to be captured in an agreement negotiated between the ministry and licence holders.
He said there has been a considerable amount of interest in investing in mining, adding that inactive licences may deter and slow down mining activity in the country.
“As of December last year, we had 600 new applications and from January to date we have had 400 applications,’ said Alweendo.
This is one of the reasons mining licence issuance takes up to 10 months before finalisation, he added.
Additionally, Alweendo said the government has been working to create a policy environment that attracts investment.
“Investments are important in this sector to ensure we maximise economic benefits, considering these minerals are not infinite,” said Alweendo.
At the same event, vice-president Netumbo Nandi-Ndaitwah said all natural resources in the country belong to Namibians.
She said although there has been ongoing public discussions of ownership of mining and oil and gas products, it is non-negotiable that the natural resources belong to Namibians.
“It is very clear, the natural resources belong to the Namibian people as per our Constitution,” she said.
Nandi-Ndaitwah said a law that protects ownership and attracts investment needs to be worked on.
“The natural resources are ours, but we have to invest in them to make use of them,” she said.
She said the government is finalising the local content policy that will see Namibians geting maximum benefits from natural resources.
“Currently, the industry allocates 60 to 80% of its procurement to local business suppliers and I would like that to be maintained or increased,” Nandi-Ndaitwah said.
However, there is a need for improvement in the production of mining inputs, she added.
“There is an opportunity to deepen the mining value chain in Namibia by producing our own input where it is commercially viable,” said Nandi-Ndaitwah.
She called on institutions in both private and public industries to finance young entrepreneurs’ business proposals.
“It is a must that as a country, we have to invest in education and training, specifically for the the miming, oil and gas industries to empower young people,” said Nandi-Ndaitwah.
Speaking at the event, Namibia Investment Promotion and Development Board chief executive Nangula Uaandja said although the resources belong to Namibians, the country needs investments from those who have money.
“We need investments to make sure that we get more value from our natural resources,” she said.
“We need good collaborations between the owners of the resources and the owners of capital,” Uaandja said.
Chamber of Mines president Zebra Kasete said investment is needed to promote exploration activity among locals.
“I am of the firm opinion that the government, tertiary institutions and financial institutions can assist Namibians to actively participate in the high risk business of exploration,” Kasete said, adding that the expo acts as a platform for locals and international mining players to collaborate and identify opportunities.
Namibia’s Epangelo mine has the potential to realise the government’s goal but needs a lot of work, he added.
“Epangelo should follow similar large state-owned enterprises in the world. We need to give them the resources they need,” said Kasete.
The expo started yesterday and ends tomorrow.
Read more: Govt to tighten grip on unused mining licences
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