Local mining remains the preserve of multinationals

A LACK of access to capital, expertise and technology has been cited as one of the reasons hindering the entrance of Namibians into the lucrative mining sector.

A local securities firm, Simonis Storm Securities (SSS), noted in its latest research paper on the mining sector in Namibia that most successful mining operations remain in the hands of multinational corporations. “The control of mineral wealth has become a contentious issue in the region, with countries like South Africa partially and positively transforming traditional corporate structures of multinationals’ octopus-like grip on mineral wealth through legislative reviews.The absence of an organised small-scale mining sector further reduces the likelihood of these miners successfully growing into larger operators,” SSS said in the report ‘Namibian Mining: The Economic Stronghold.’ “In order to address the issue of local ownership and participation in Namibia’s mining sector, a clear legislative framework must be established to promote small-scale mining activities,” the report advised.Analysts attribute the inefficiency of small-scale miners to the lack of a minerals development policy.Large mining firms have the capacity to muscle out small miners from rich mineral deposits.”This leaves very little protection for small-scale miners, especially in the light of large companies showing interest in similar mineral deposits,” the company said.SSS further stated that the small-scale mining sector is the only corridor for ’empowering previously disadvantaged Namibians’.The analysts said these nascent miners have been greatly disadvantaged by the remote geographical location of rich diamond deposits, as well as the early demarcation of the restricted diamond areas.Analysts also said small-scale miners in Namibia do not have access to the Namibia Development Fund, a vehicle set up to provide funding for upcoming mining firms.The small-scale mining industry is also faced with a marketing vacuum, due to the lack of training and access to timely information regarding mineral prices on international markets.”The average small-scale miner seldom is able to ascertain the true value of his product,” SSS said.Mineral exports raked in more than N$6,3 billion in 2004, accounting for 46 per cent of the country’s total export basket.The industry, which directly employs more than 7 500 people, contributes about 10 per cent to Namibia’s gross domestic product (GDP).The Government last year issued an unequivocal statement inviting foreign investors to take up the cudgels of development of any exploitable uranium deposits.The analysts say uranium miners can take advantage of rising global prices and the prospective supply shortage of primary materials within the next decade.- Nampa”The control of mineral wealth has become a contentious issue in the region, with countries like South Africa partially and positively transforming traditional corporate structures of multinationals’ octopus-like grip on mineral wealth through legislative reviews.The absence of an organised small-scale mining sector further reduces the likelihood of these miners successfully growing into larger operators,” SSS said in the report ‘Namibian Mining: The Economic Stronghold.’ “In order to address the issue of local ownership and participation in Namibia’s mining sector, a clear legislative framework must be established to promote small-scale mining activities,” the report advised.Analysts attribute the inefficiency of small-scale miners to the lack of a minerals development policy.Large mining firms have the capacity to muscle out small miners from rich mineral deposits.”This leaves very little protection for small-scale miners, especially in the light of large companies showing interest in similar mineral deposits,” the company said.SSS further stated that the small-scale mining sector is the only corridor for ’empowering previously disadvantaged Namibians’.The analysts said these nascent miners have been greatly disadvantaged by the remote geographical location of rich diamond deposits, as well as the early demarcation of the restricted diamond areas.Analysts also said small-scale miners in Namibia do not have access to the Namibia Development Fund, a vehicle set up to provide funding for upcoming mining firms.The small-scale mining industry is also faced with a marketing vacuum, due to the lack of training and access to timely information regarding mineral prices on international markets.”The average small-scale miner seldom is able to ascertain the true value of his product,” SSS said.Mineral exports raked in more than N$6,3 billion in 2004, accounting for 46 per cent of the country’s total export basket.The industry, which directly employs more than 7 500 people, contributes about 10 per cent to Namibia’s gross domestic product (GDP).The Government last year issued an unequivocal statement inviting foreign investors to take up the cudgels of development of any exploitable uranium deposits.The analysts say uranium miners can take advantage of rising global prices and the prospective supply shortage of primary materials within the next decade.- Nampa