Mining sector pays N$5b in corporate tax

The non-diamond mining sector contributed N$4.4 billion in corporate income tax in 2025/26, up from N$2.9 billion in 2024/25.
This estimated 54% increase largely reflects strong gold and improved commodity prices.

According to the Chamber of Mines of Namibia’s latest monthly mining update for January, the country’s mining sector continues to play a central role in the national economy, with strong performances in gold, uranium and base metals supporting export earnings and government revenues.

This is in contrast with tax receipts from diamond mining companies that show a pronounced short-term contraction from N$239 million received in 2024/25, to an estimated N$74.3 million in the 2025/26 financial year, representing a 69% decrease – contributing to more than N$5 billion in corporate income tax from the mining sector.

“Receipts for diamond mining are estimated to gradually recover to N$101.9 million in 2026/27,” the chamber says.

Export levies paid by mining operations on the sale of minerals increased by 14%, rising from N$560 million in 2024/25 to an estimated N$639 million in 2025/26.

“This increase was likely driven by higher uranium production during the period. Unlike corporate income tax, export levies are applied to the sale of specific minerals, with rates determined by the level of value addition undertaken prior to export,” the chamber explains.

Meanwhile, diamond royalties are also projected to weaken materially over the medium term expenditure framework.

Diamond royalties paid to the state fell by more than a third, from N$1.16 billion in 2024/25 to N$755.7 million in the 2025/26 revised estimate.

In contrast, royalties from the non-diamond sector show greater resilience and a stronger outer-year uplift, mostly a result of higher sales values expected for gold and uranium.

After increasing slightly to N$1.06 billion in 2025/26, other mineral royalties are expected to drop off slightly to N$927.1 million in 2026/27, then recover to N$980.6 million in 2027/28, before rising sharply to N$1.37 billion in 2028/29.

The chamber notes that global commodity markets provided mixed signals at the start of the year.

“Gold prices have remained elevated amid geopolitical tensions and continued safe-haven demand, supported by sustained central bank purchases,” says the report.

Uranium prices strengthened further, averaging US$86.57 per pound, reflecting renewed global momentum in nuclear energy development and decarbonisation strategies.

Meanwhile, copper and tin prices recorded strong gains, supported by demand linked to electrification and renewable energy infrastructure.

“In contrast, the diamond market remains under pressure due to weak global consumer demand, high inventories and continued competition from lab-grown diamonds, which continues to weigh on Namibia’s diamond export revenues,” the report adds.

According to the report, Namibia, however, remains well-positioned to benefit from rising global demand for critical and strategic minerals, particularly uranium, as countries seek secure supply chains for energy transition technologies.

Despite positive market conditions, the update highlights several risks facing the sector, including increasing geopolitical tensions, uncertainty in global supply chains and rising domestic cost pressures, particularly in electricity and fuel.

Mining operations are electricity- and diesel-intensive, meaning sustained increases in utility and transport costs could place upward pressure on operating expenditure and impact financial planning, especially for new projects.
– Email: matthew@namibian.com.na

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