Mining sector frustrated as Minerals Bill faces ongoing delays
The Chamber of Mines of Namibia has criticised the Ministry of Industries, Mines and Energy for stalling the Draft Minerals Bill, which is intended to replace the outdated 1992 Minerals Act.
Despite the Chamber’s efforts to provide input and technical support, delays in stakeholder engagement and internal reviews have slowed progress, frustrating industry leaders eager to modernise the country’s mining legislation.
Reflecting on attempts to update Namibia’s mining legislation, Chamber of Mines of Namibia CEO Veston Malango said that the mining lobby group had made significant efforts to provide input to the Bill, but the ministry had not responded positively to engagement.
“During the roundtable discussion in January 2024, the minister instructed ministerial officials to schedule a half-day workshop with the Chamber to conclude the outstanding matters on the Draft Minerals Bill. Despite the Chamber’s repeated follow-ups with MME regarding a date for the workshop, it never materialised,” Malango said.
Sectoral review
According to Malango, the Chamber subjected the proposed Bill to an internal industry review and informed the ministry, which, for its part, did not present the Bill for public scrutiny.
“Meanwhile, the Chamber was informed that the ministry had initiated another internal review of the Bill. Upon completion of this internal review, the ministry planned to commence further stakeholder consultations and finalise the Bill before the year’s end. The Chamber has yet to receive updates on the outcomes of the ministry’s internal review process or the stakeholder consultations,” Malango said.
“In addition, the Chamber offered free technical assistance to the ministry in the form of legal and geology experts to assist in the drafting of the Minerals Bill and new Licensing Regulations. The Chamber’s engagements were also influenced by concurrent developments on government free-carry and the Minerals agreement,” he added.
Need for review
Meanwhile, mining commissioner Isabella Chirchir in 2024 said the Bill wouldn't change much of the core of the long-standing legislation, but would instead focus on providing the minister with more powers to make regulations.
Recommendations contained in the Bill include adjustments to application costs, relaxation of exclusivity for reconnaissance licences and exploration licences, small-scale mining on mining claims, and exclusive prospecting licence areas requiring mineral agreements. The Bill also proposes lifting the cap on royalties from 5% to 10% for minerals other than diamonds, for which the 10% cap already applies.
The new law would prohibit ministry employees from acquiring rights for 12 months after leaving the ministry, while new provisions include enforcing at least 5% Namibian ownership in mining companies, requiring a production percentage to remain in the country for local beneficiation, as well as mine closure financing and rehabilitation responsibilities.
It would also introduce a small-scale mining permit. Furthermore, the new Bill is expected to define levies and charges that may be deducted from royalty payments, which the ministry said were sometimes inflated in the past.
Despite the Chamber’s efforts to provide input and technical support, delays in stakeholder engagement and internal reviews have slowed progress, frustrating industry leaders eager to modernise the country’s mining legislation.
Reflecting on attempts to update Namibia’s mining legislation, Chamber of Mines of Namibia CEO Veston Malango said that the mining lobby group had made significant efforts to provide input to the Bill, but the ministry had not responded positively to engagement.
“During the roundtable discussion in January 2024, the minister instructed ministerial officials to schedule a half-day workshop with the Chamber to conclude the outstanding matters on the Draft Minerals Bill. Despite the Chamber’s repeated follow-ups with MME regarding a date for the workshop, it never materialised,” Malango said.
Sectoral review
According to Malango, the Chamber subjected the proposed Bill to an internal industry review and informed the ministry, which, for its part, did not present the Bill for public scrutiny.
“Meanwhile, the Chamber was informed that the ministry had initiated another internal review of the Bill. Upon completion of this internal review, the ministry planned to commence further stakeholder consultations and finalise the Bill before the year’s end. The Chamber has yet to receive updates on the outcomes of the ministry’s internal review process or the stakeholder consultations,” Malango said.
“In addition, the Chamber offered free technical assistance to the ministry in the form of legal and geology experts to assist in the drafting of the Minerals Bill and new Licensing Regulations. The Chamber’s engagements were also influenced by concurrent developments on government free-carry and the Minerals agreement,” he added.
Need for review
Meanwhile, mining commissioner Isabella Chirchir in 2024 said the Bill wouldn't change much of the core of the long-standing legislation, but would instead focus on providing the minister with more powers to make regulations.
Recommendations contained in the Bill include adjustments to application costs, relaxation of exclusivity for reconnaissance licences and exploration licences, small-scale mining on mining claims, and exclusive prospecting licence areas requiring mineral agreements. The Bill also proposes lifting the cap on royalties from 5% to 10% for minerals other than diamonds, for which the 10% cap already applies.
The new law would prohibit ministry employees from acquiring rights for 12 months after leaving the ministry, while new provisions include enforcing at least 5% Namibian ownership in mining companies, requiring a production percentage to remain in the country for local beneficiation, as well as mine closure financing and rehabilitation responsibilities.
It would also introduce a small-scale mining permit. Furthermore, the new Bill is expected to define levies and charges that may be deducted from royalty payments, which the ministry said were sometimes inflated in the past.
