Xinfeng on thin ice as Amutse demands report

Minister of industries, mines and energy Modestus Amutse has given mining company Xinfeng Investments one week to detail how it would rectify irregularities and meet new conditions to resume operations.

These irregularities led to the mine’s closure in December 2024.

Amutse revealed this on Sunday, following consultations with the Chinese-owned mine near Uis in the Erongo region on Friday.

The ministry suspended the project’s operations following allegations of illegal mining, environmental damage and the disturbance of ancestral graves.

“I gave them only a week to submit a comprehensive timeline to indicate how they are going to implement the conditions. Only then can I make a decision to start the operations immediately or not. The purpose is to really allow progress for the sake of the unemployed residents,” he said.

Amutse undertook the visits to understand the situation and engaged all affected parties to make an informed decision about the mine, he said.

The minister instructed the company on conditions, of which one is to provide workers with proper accommodation on site.

He said the ministry wants to consider all options for the benefit of the community. He said the diamond sector is no longer doing well, and other minerals must now fill the gap to grow the economy.

Amutse said the economy cannot suffer because of non-compliance and the ministry must ensure livelihoods are preserved, adding that the mine cannot stay closed and the ministry needs to decide whether to recall the exploration licence and give it to other interested parties.

However, due to the structures already put up, which cost Xinfeng about N$900 million, he said such a decision would not work.
Amutse said there is no compromising on the conditions.

He believes the benefits to communities are more important than closing the mine, as this would damage their livelihoods and the economy.

Amutse commended Xinfeng for its willingness to comply.

Meanwhile, mining commissioner Isabella Chirchir says the ministry has been in discussion with the company about restarting operations, but only if certain conditions are met.

These include employing Namibian professionals such as a mining engineers, a mine manager, and health and safety officers.

Other conditions are to have an ambulance on site, and to engage the community through corporate social responsibility programmes.

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