IPC sounds alarm on 51% Govt stake in new mines

The Independent Patriots for Change (IPC) has raised concerns over the government’s move to seek 51% ownership in the mining sector.

The party says with high tax rates and royalties imposed on the mining sector, it would sink.

This was raised by IPC shadow minister of mines and energy Ferdinand Hengombe in a statement on Wednesday.

Hengombe said the global mining landscape is fiercely competitive, and Namibia cannot afford to alienate investors.

“The ministers’ comments at the recent mining expo will chase away all new mine development and will scar Namibia as an investable jurisdiction for mining for years to come.

“A balanced approach that puts Namibia’s interests first but keeps much-needed partners at the table is needed,” he said.

Hengombe said minister of industries, mines and energy Natangue Ithete should be held accountable for “reckless” statements.

He said the minister doesn’t understand the difference between minerals and mines and would destroy investment and growth not just in mining, but also in oil and gas.

Hengombe believes Namibia needs to keep foreign counterparties at the table to ensure it continues to extract value from these minerals below the surface.

“However, the minister’s’ comments simply make this impossible. Similar
policies to those put forward by honourable Ithete has caused the collapse of the South African mining sector, where no significant mine has been developed for over a decade.

“The minister has done no homework and simply sings populist narratives to try and win votes at the expense of the economy,” he said.

Hengombe said the Swapo government is misdirecting their failures towards the most
important sector of the Namibian economy in a populist effort to redirect blame for years of economic mismanagement.

“Mining is a notoriously capital-intensive industry. It requires enormous risk and capital to find minerals hidden below our land surface, and billions in capital to develop mines to extract these resources,” he said.

Hengombe said Ithete’s
comments will devastate Namibia and its lifeblood industry.

He said the mining sector procures over N$20 billion from Namibian suppliers each year, employs thousands of people, and pays billions in corporate tax and royalties on an annual basis.

“We call of the president to recall the minister. He has clearly illustrated that he does not understand the sector over which he presides.

“The mining sector is too important for Namibia to leave in the hands of such a destructive force,” he said.

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