Significant improvements in the mining sector

23 November 2021 | Economics

Simonis Storm; "While we remain positive about the mining sector in the short run and long run, economic growth should not rely extensively on the mining sector."

Windhoek • [email protected]

The local mining industry underwent significant amount of investment last year in order to expand operations, implement care and maintenance and expand their life of mine. As a result, mining production is expected to weigh on growth during 2021 and only provide support to gross domestic product (GDP) growth from 2022 onwards, Simonis Storm stated in their latest quarterly report.

According to the Namibia Statistics Agency (NSA) mining sectoral report, uranium, gold and diamond production registered positive growth in September both on monthly and yearly basis. Meanwhile, Zinc recorded a monthly decline and an increase on an annual basis.

The volume of diamonds produced amounted to 138 396 carats in September 2021, compared to 127 057 carats in August 2021. 36 601 carats were produced in august 2020, NSA pointed out.

In addition, on yearly basis, gold bullion production increased by 79.0%, which is a tremendous improvement when compared to a reduction of 17.4%recorded in the corresponding month of 2020.

The production of gold bullion stood at 852 kg in September 2021 compared to 844 kg and 476 kg registered in August 2021 and in the corresponding month of 2020, respectively. The increase in the production of diamonds carats and gold bullion were due to the global demand and the expansion of operations in the mining activities, NSA said.

Moreover, the uranium production index on a monthly basis registering a growth of 24.1% in September 2021, compared to a growth of 3.9% recorded in the preceding month. On annual basis, the index posted a reduction of 0.4%.

Sufficient water

The increase recorded in the production of uranium on monthly basis was mainly attributed to high-grade ore mined. This was driven by the availability of sufficient water required to mine and process uranium minerals efficiently during the review period.

It is worthwhile to note that in the month of September 2021, the production of uranium jumped to 668 tons compared to 538 tons and 671 tons produced in August 2021 and September 2020, respectively, NSA added.

Lastly, 7 626 tons of zinc were produced in September 2021 compared to 7 783 tons and 6 956 tons produced in August 2021 and September 2020, respectively.

Overall, the mining composite index registered a monthly growth of 9.1% in September 2021, an improvement when compared to a growth of 4.9% recorded in the preceding month. Annually, the index recorded a growth rate of 96.4% for the period under review, NSA said.

According to Simonis Storm, “while we remain positive about the mining sector in the short run and long run, economic growth should not rely extensively on the mining sector. Many argue that the mining sector has reached its full potential. The mining sector is the second biggest employer, employing just over 14 000 workers, but is unlikely to employ more citizens given the capital-intensive nature of the industry. The Namibian economy should diversify its income generating industries and be less raw commodity growth dependent.”

Similar News


Economic agents ‘reluctant’ on credit uptake

1 week ago - 04 January 2022 | Economics

Windhoek ∙ [email protected] Statistics released by the Bank of Namibia (BoN) indicated that private sector credit extension (PSCE) growth slowed to 1.7% year-on-year...

Breather for indebted consumer

2 weeks ago - 30 December 2021 | Economics

Windhoek • Jo-Maré Duddy Debt-ridden consumers, who owe commercial banks about N$62 billion, breathed a sigh of relief when the Bank of Namibia (BoN) said...

Trade misinvoicing: Namibia loses N$3.9bn annually

2 weeks ago - 28 December 2021 | Economics

Windhoek ∙ Ogone Tlhage Namibia lost US$152 million in trade invoicing imbalances against the world’s 32 biggest economies in 2018, and on average US$251...

Consumers are shark bait

1 month - 16 December 2021 | Economics

Windhoek • Jo-Maré Duddy Year-on-year (y/y), total debt owed to microlenders skyrocketed by 15.1%. In comparison, credit extended to the household sector by commercial banks...

Steady growth in house prices

1 month - 14 December 2021 | Economics

Staff Reporter The Namibian housing market appears to be at an inflection point, where pent-up demand and low interest rates are expected...

Investors spooked

1 month - 02 December 2021 | Economics

Windhoek • Jo-Maré Duddy If government gets its way, the Investment Promotion and Facilitation Bill will become law this week, giving the trade...

Rental index growth flatlines

1 month - 01 December 2021 | Economics

Although rental markets across most advanced economies are on a path of recovery due to the resumption of “normal life”, improved pace of Covid-19 vaccination...

Renewable energy transition requires investors

1 month - 30 November 2021 | Economics

Windhoek • Phillepus Uusiku Namibia has the world’s second highest solar irradiation regime, high wind power potential and potential for geothermal and bioenergy developments....

Telecom, CRAN reaches agreement on levies

1 month - 28 November 2021 | Economics

Staff ReporterThe Communications Regulatory Authority of Namibia (CRAN) and Telecom Namibia Limited reached a settlement agreement, closing a longstanding dispute on the legality of regulatory...

Prices of building materials skyrocketing

1 month - 23 November 2021 | Economics

Windhoek • [email protected] Supply disruptions caused by the Covid-19 pandemic has resulted in prices on building materials escalating significantly. The materials that recorded the...

Latest News

The Audi Q5, SQ5 Sportback

14 hours ago | Motors

Following the Q3 Sportback and the e-tron Sportback, Audi now presents its third crossover utility vehicle, the first-ever Q5 Sportback. This coupé with dynamic lines...

Drones delivering to your doorstep

14 hours ago | Technology

Windhoek • [email protected] Namibia will most likely start using drones to deliver medicine to remote locations within the next few weeks.This comes after a...

More than the absence of...

14 hours ago | Health

Ideally, it is a state of mental well-being in which people cope well with the many stresses of life, can realize their own potential, and...

Suspected avian flu being investigated

2 days ago - 14 January 2022 | Environment

Swakopmund • [email protected] Following a major outbreak of avian influenza in South Africa’s Western Cape a few months ago that killed almost 25 000...

Taxi-tariff guide gives legal footing

2 days ago - 14 January 2022 | Infrastructure

Walvis Bay • [email protected] The recently published taxi-tariff guide by the Namibia Bus and Taxi Association (Nabta) to accompany the official taxi-tariff hike...

Boggelrugwalvis spoel uit

2 days ago - 14 January 2022 | Picture of the day

'n Boggelrugwalvis het gister laatmiddag by Langstrand Uitbreiding 1 tussen Swakopmund en Walvisbaai uitgespoel. Volgens 'n inwoner het die dooie walvis met laegety teen 'n...

Van Walvis tot wêreldklas animasieregisseur

2 days ago - 14 January 2022 | Art and Entertainment

Windhoek ∙ [email protected] Die Namibies gebore Reginald Amukoshi Emvula was een van die regisseurs van die animasiefilm Encanto wat Maandagoggend die Golden Globe-toekenning vir...

Maybe I was wrong –...

2 days ago - 14 January 2022 | Police

Windhoek ∙ Mathias Haufiku Police chief Sebastian Ndeitunga yesterday said he might have acted ‘ultra vires’ when he issued an internal memo to...

Shangula lambasts anti-vaxxers

2 days ago - 14 January 2022 | Ministries

Health and social services minister Kalumbi Shangula has implored vaccine sceptics to abandon the anti-vaccine campaign and to join the nation to successfully fight Covid-19...

Load More