High fuel prices since March have increased production costs for the Namibian mining sector, as fuel is an important input for haulage, transport and on-site operations.
The Chamber of Mines monthly update for March to May, released on Thursday, says Namibia is vulnerable to global uncertainty around oil prices and trade policy.
“The mining sector is highly exposed to fuel price movements because fuel is a critical input across the mining value chain, from exploration and haulage to logistics and transport,” chamber chief executive Fabian Shaanika says.
Transport inflation increased by 11.5% compared to last year, while overall inflation is 4.1% in May compared to 3.1% in April.
This puts particular pressure on diamond mining operations, which are already struggling due to weak demand, as well as smaller operations that are unable to absorb costs.
However, the chamber says some mining operations have been able to adapt to the new environment.
“Husab Mine’s haul trucks are capable of operating on either diesel or electricity, and the
recent increase in diesel prices has prompted the mine to switch to electric power for its haulage fleet. This highlights the opportunity for mining companies to increasingly
integrate alternative energy solutions where technically and economically feasible,” chamber chief economist Lauren Graham says.
Overall, gold and uranium prices remain high, while diamond prices are low.
Gold prices are 39% higher in May 2026 compared to May 2025.
“This confirms that gold remains a favourable asset, supported by sustained safe-haven demand amid global uncertainty, geopolitical tensions, trade-related risks and cautious investor sentiment,” the report says.
Uranium prices have increased by 21% compared to May 2025, while copper, tin and zinc prices are all significantly higher than last year.
“Namibia’s mining sector outlook stays cautiously optimistic, driven by high global prices for uranium and gold and ongoing development of multiple projects,” the report says.
It adds: “Although Namibia’s mining sector continues to benefit from strong mineral fundamentals, maintaining competitiveness will depend on measures to mitigate costs, and a stable regulatory and policy framework that enables existing mines and new projects to remain viable.”
