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Mining locations
1 Tsumeb
2 Kombat
3 OkorusuFluorspar
4 SaltCompany
5 WalvisBaySaltRefiners
6 LangerHeinrich
7 Rössing
8 Navachab
9 Matchless
10 Otjihase
11 Skorpion
12 RoshPinah
13 Namdeb
14 DeBeersMarineNamibia
15 DiamondFields
16 TransHex
17 Samicor
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Table of ContentsHighlights............................................................................................................................page.3
Chamber.President’s.Review..............................................................................................page.4
Feature:.“We.are.are.being.proactive”................................................................................page.14
AngloGold.Ashanti.............................................................................................................page.20
De.Beers.Marine.Namibia..................................................................................................page.24
Langer.Heinrich.Uranium...................................................................................................page.26
Namdeb...............................................................................................................................page.28
Okorusu.Fluorspar..............................................................................................................page.34
Ongopolo.Mining.and.Processing.......................................................................................page.38
Rosh.Pinah.Zinc.Corporation..............................................................................................page.42
Rössing.Uranium................................................................................................................page.46
Sakawe.Mining.Corporation...............................................................................................page.50
Skorpion.Mining.................................................................................................................page.54
Trans.Hex.Marine.Namibia.................................................................................................page.58
Salt.and.Chemicals..............................................................................................................page.60
Feature:.“Namibia’s.uranium.exploration.boom”...............................................................page.62
Mining.and.the.economy....................................................................................................page.68
Annex.1:.Key.statistics.......................................................................................................page.72
Annex.2:.Chamber.members.and.committees....................................................................page.82
Annex.3:.Chamber.empowerment.strategy.........................................................................page.86
References...........................................................................................................................page.88
Glossary..............................................................................................................................page.93
HighlightsMarine diamond production outstrips
land production for the first time ever
Weatherly International plc buys
Ongopolo Mining and Processing (Pty)
Ltd
Langer Heinrich Uranium (Pty) Ltd
opens world’s first new uranium mine
in 20 years
Life of mine extended at Rössing and
Navachab
Record exploration spending of N$477
million (US$75 million) in 2005
Strong mineral prices especially
uranium oxide, gold, zinc and copper
Revised mining royalty tax introduced
at rates between 2% and 3% from 1
November 2006
Chamber of Mines refocusses on
needs of mining and exploration
companies
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A year has gone by since the publication of our first glossy review. As we had
hoped,.the.review.very.successfully.served.to.represent.our.industry.on.all.levels,.
both. locally. and. internationally.. It. has. become. the. Chamber’s. calling. card. and.
the mouthpiece of our industry. Our first review was handed out to government
ministries,.NGOs,. local. and. international.businesses,.municipalities,.prospecting.
companies,.embassies,.and.even.schools..
To.complement.the.review,.the.Chamber’s.website.went.live.in.February.2006..We.
don’t.yet.have.the.ability.to.assess.just.how.many.“hits”.the.website.has.received,.
but.plan.to.install.a.counter.very.soon..Of.course.a.website.is.only.as.useful.as.the.
degree.to.which.it.remains.current..We.intend.to.continually.add.breaking.news.and.
relevant information about our industry so that our website becomes the first port of
call.for.anyone.interested.in.mining.in.Namibia.
MME Imposes a Revised Royalty Tax on the IndustryAs.I.write,.news.of.the.government’s.decision.regarding.the.royalty.imposition.has.just.broken..The.
Chamber.vehemently.opposed.the.previous.imposition.of.a.royalty.on.gross.sales,.announced.by.way.
of.a.government.gazette.issued.in.November.2004..The.main.factors.behind.the.Chamber’s.discontent.
with.the.royalty.imposition.were.its.unaffordability,.especially.during.times.of.a.strong.local.currency,.
and.the.complete.lack.of.consultation.with.the.mining.industry,.through.its.representative,.the.Chamber.
of.Mines..
The.Minister.of.Mines.and.Energy.thankfully.agreed.to.postpone.the.imposition.until.
he.had.consulted.the.industry..In.2006,.Chamber.members.representing.the.larger.
mining.operations.were.each.given.an.opportunity.to.present.their.economic.cases.to.
the Ministry. Following several visits by Chamber office bearers, the Chamber was
afforded.the.opportunity.to.present.its.recommendations.to.the.Honourable.Minister.and.his.senior.
staff.of.the.Ministry.in.August.2006..The.Minister.had.appointed.the.Mining.Commissioner.to.oversee.
and.review.the.consultation.process,.and.to.make.recommendations.regarding.the.affordability.of.a.
royalty.on.gross.revenue.to.the.various.classes.of.minerals.and.metals..The.conclusion.of.this.process.
resulted in significant changes to the original imposition. On the 1.November.2006,.the.government.
made.known.its.intentions.in.the.Government.Gazette.No.3733..Accordingly,.the.Minister.has.now.
imposed.the.following.royalties.on.the.various.classes.of.minerals,.effective.from.1.November.2006..
Further.changes.were.introduced.on.1.December.2006.
Chamber President’s Review
Mineral Class Notice �48, �5 Nov �004 Notice �9�, � Nov �006Precious Metals 5 % � %Base and Rare Metals 5 % � %Semi Precious stones 4 % � %Industrial Minerals 4 % � %Nuclear Fuel Minerals 5 % � %�
Non Nuclear Fuel Minerals 4 % � %�
Mark DaweChamber President
TheMinistrythankfullyagreedtopostponetheimpositionoftheroyaltytaxuntilithadconsultedtheindustry.
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� Changed from �% to �% on � December �006� Changed from �% to �% on � December �006
It is certainly refreshing to know that in our fledgling democracy, stakeholders
are afforded the opportunity of debating and influencing matters of legislation so
important.to.the.future.of.our.industry.and.our.country..This.consultative.process.
is.becoming.a.trade.mark.of.Namibia,.where.freedom.of.the.press.has.reached.
unparalleled. levels. on. the. continent,. placing. it. squarely. among. the. rank. and.
file of the world’s true democracies. Notwithstanding this, Chamber members
remain. concerned. that. the. combination. of. the. royalty. tax. on. gross. revenue.
(albeit.at.a.reduced.level),.and.one.of.the.highest.mining.corporate.tax.rates.in.the.world.(37.5%),.
is.clearly.eroding.Namibia’s.competitiveness.ranking,.labeling.it.as.a.marginally.attractive.mining.
destination..The.combination.of.3%.royalty.(for.most.of.Namibia’s.non-diamond.mining.operations).
and 37.5% corporate tax, is simply too high. The combination firmly establishes Namibia as one of
the.highest.taxed.countries.in.the.world.for.mining.companies..
One.of. the.mechanisms.advocated.by. the.Chamber. is. that. the.Minerals.Bill. should.allow. for.a.
reprieve.from.the.payment.of.royalty.during.lean.times.for.the.mining.industry,.
specifically for operations that have become unprofitable. We have the
advantage. of. being. able. to. learn. from. the. South.African. experience. without.
needing.to.copy-cat.our.neighbour..Credit.is.due.to.the.Chamber.of.Mines.of.
South Africa, for having fought for and gained an exemption clause for unprofitable operations.
In.November.2006,.the.SA.government.acquiesced.to.the.Chamber’s.advice,.ending.with.a.win-
win.situation.for.both.government.and.the.mining.operations.in.South.Africa..The.combination.of.
high.corporate.tax.together.with.the.revised.royalty.rates.is.sure.to.negatively.impact.on.Namibia’s.
global.competitiveness.ranking..
Namibia’s Competitiveness RankingJust. how. competitive. is. Namibia. by. world. standards?. . Insight. Magazine’s. feature. on. Mining.
in. Namibia. states. that. Namibia. is. included. in. the. World. Economic. Forum’s. Annual. World.
Competitiveness. Ranking,. based. on. its. Global. Competitiveness. Index. (GCI).
and.Transparency.International’s.Corruption.Perceptions.Index.(CPI)..Namibia.
is. also. included. in. the. World. Bank’s. “Doing. Business. 2005”..Although. the.
statistics. were. issued. prior. to. the. government’s. recent. declaration. of. revised.
royalties,. Namibia’s. CPI. has. fallen. since. 2001,. but. it. improved. in. 2005..
Namibia’s. competitiveness. ranking. has. also. fallen. in. recent. years. as. more.
countries. have. been. assessed.. The. Insight. feature. goes. on. to. describe. South.
Africa’s. slide. down. the. slippery. slope. of. competitiveness,. especially. in. the. arenas. of. taxation,.
socio-economic agreements and labour regulations. Namibia’s taxation regime is now significantly
higher.than.that.of.South.Africa...
Many.see.the.umbilical.cord.joining.Namibia.to.its.past.colonial.masters.as.a.tether.that.prevents.
Namibia.from.realising.its.goals.of.economic.freedom.and.independence..They.feel.that.until.such.
Thecombinationofaroyaltyanda37.5%corporatetaxrateissimplytoohighandfirmlyestablishesNamibiaasoneofthehighesttaxedcountriesintheworld.
WehavetheadvantageofbeingabletolearnfromtheSouthAfricanexperience.
SouthAfricahasslid downtheslipperyslopeof
competitivenessintheareasoftaxation,socio-economicagreementsandlabourregulations.
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time.as.the.cord.is.severed,.economic.freedom.will.remain.an.elusive.dream,.overshadowed.by.a.
bullying.big.brother..But.there.are.also.unique.opportunities.to.be.harvested.from.the.geographic.
and. economic. links. to. our. neighbour.. Our. country. is. blessed. with. a. common. currency. unit,. a.
single.border.and.a.common.customs.union,.with.one.of.the.global.mining.powerhouses..Capital.
equipment and consumables so vital for our high tech mines flow freely across the border and
infrastructure. is. of. such. a. standard. that.most.mining.equipment. is. a.matter.of.days. away. from.
our.mines,.while.access.to.technology.is.merely.two.hours.from.our.capital..But.
perhaps. the.keenest.opportunity. lies. in.our. ability. to. learn. from.our.neighbour,.
as it finds its way down the rocky and challenging road of Black Economic
Empowerment.and.socio-economic.reform..According.to.Insight,.Behre.Dolbear.
and.Company’s. ranking.of.political. risk. to.mining.companies.paints.a.gloomy.picture.of.South.
Africa,.stating.that.“its.realignment.of.mining.rights.and.the.requirement.that.companies.‘sell’.an.
increasing.percentage.of.their.property.ownership.to.Formerly.Disadvantaged.Groups,.are.thinly.
disguised.forms.of.taxation”..
We.need.to.sit.back.and.critically.examine.the.South.African.models.with.a.view.to.learning.from.
them, so that we can maximize our mineral potential to the benefit of all of the country’s citizens. No
investors.like.to.be.told.to.give.up.26%.of.their.company.to.an.already.empowered.
individual.or.group.of.individuals..Mining.is.capital.intensive.and.fraught.with.risk..
Rewards. and. risk. are. equally. high..Accordingly,. competition. for. capital. among.
mining.and.exploration.companies.is.intense,.and.guided.by.the.potential.for.return.
on.investment..Mining.and.exploration.is.in.a.boom.phase.at.the.moment.but.our.
industry. has. seen. that. exploration. companies. will. take. their. money. and. run. next. door. if. their.
investment. is. perceived. to. be. more. lucrative. there.. Therein. lies. Namibia’s. unique. opportunity..
We.need.to.ensure.that.we.are.just.that.much.more.competitive.than.our.fellow.African.countries.
that.are.equally.endowed.with.world.class.resources..We.don’t.yet.have.a.Mining.Empowerment.
Charter.and.we.are.currently.reviewing.the.new.Minerals.Bill,.through.the.Minerals.Bill.Committee,.
on.which.the.Chamber.is.represented..These.key.pieces.of.legislation.will.dictate.the.future.of.our.
industry,.and.as.our.industry.is.the.backbone.of.our.country,.they.could.very.well.determine.the.
future.of.our.country.
The Chamber believes it is possible to provide sufficient incentives to investors in mining and
exploration. to. attract. all. but. the. most. cautious,. while. still. providing. for. the.
needs of the fiscus and of a people previously deprived of many of the rewards
of. the. country’s. very. substantial. mineral. endowment.. We. have. proposed. a.
system. of. windfall. taxation. to. the. government. and. we. have. offered. to. assist.
the.government.to.shorten.the.EPZ.tail,.whereby.the.incentives.provided.under.
the EPZ regime would still be a benefit to the mining industry but through the
Minerals Agreement, as provided for in the Act. These benefits would be for a limited period, to
be.determined.case.by.case,.in.order.to.facilitate.recouping.of.the.capital.investment,.whereafter.
BehreDolbear&Company’srankingpaintsagloomypictureofSouthAfrica.
Miningandexplorationisinaboomphasebutourindustryhasseenthatexplorationcompanieswilltaketheirmoneyandrunnextdoor.
WehaveproposedasystemofwindfalltaxationtothegovernmentandhaveofferedtoassistthegovernmenttoshortentheEPZtail.
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they.would.fall.away.and.all.applicable.taxes.would.apply..Mining.is.historically.a.boom.and.bust.
industry, driven by sinusoidal cycles of commodity prices. We need to be certain that the non profit-
based.taxation.measures.still.allow.our.operations.some.breathing.room.to.survive.during.the.low.
ebb. in. the. cycle.. Contrary. to. public. perception,. the. Chamber. is. not. opposed.
to.the.principle.of.a.royalty.on.gross.sales,.but.we.believe.the.combination.of.
royalty and profits based tax should be both competitive and affordable.
Mining’s Contribution to the EconomyThe.state.of.health.of.the.mining.industry.is.masked.by.the.exchange.rate.between.the.Namibia.
dollar. and. the. US. dollar.. In. December.
2004, when MME first imposed its non
diamond.mining.royalty,.the.local.currency.
had.almost.doubled.in.value.in.a.single.year..
MME.could.not.have.chosen.a.worse.time.
to. invoke. the. royalty. tax. on. the. industry..
Operational. costs. of. mines. increase. year-
on-year.at.a.rate.that.is.typically.well.above.
the. CPI. or. the. PPI..The. reason. for. this. is.
most.likely.due.to.the.price.of.mining.capital.
equipment,. spares. and. consumables. being.
ever.more.scarce,.in.response.to.the.supply.
and. demand. balance,. as. we. experience. a.
boom.in.mining.globally...
The.combination.of. increasing.costs.of.between.six.and. ten.%.(annually.compounded).with.an.
appreciating.local.currency,.can.result.in.a.situation.where.many.operations.become.marginal..This.
was the case in 2004 when the royalty was imposed and the trend continued into 2005 and the first
quarter.of.2006,.as.our.statistics.in.this.review.demonstrate..
As the profitability of our operations was eroded by the exchange rate, so revenue
from.taxation.fell.from.nearly.N$2.5.billion.in.2002/2003.to.around.N$400.million.
in.2005/2006..Over.the.same.period,.non-diamond.mining.taxation.fell.to.around.
N$10.million,.a.clear.sign.that.our.mines.were.struggling.to.balance.their.books.
What.stronger.case.can.there.be.for.the.Chamber’s.position.that.the.government.should.consider.
the profitability of individual operations and allow for reprieve from the non-profit based royalty in
situations.of.unaffordability?.
2006.was.a.windfall.year.for.our.operations,.translating.to.a.dramatic.turn-around.from.the.losses.
experienced.by.many.operations.in.2004.and.2005..Commodity.prices.have.reached.unprecedented.
Wearelikelytoseeadramaticincreaseinthevalueaddedcontributionofnondiamondminingtooureconomy.
Theprofitabilityofouroperationswaserodedbytheexchangerate.
Mining value added as % of GDP
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
1990 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05
Source: National accounts, CentralBureau ofStatistics
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levels.for.gold,.copper,.zinc.and.uranium..The.boom.in.minerals.and.metals.has.largely.been.driven.
by.the.blossoming.of.the.dragon.and.tiger.economies.and.their.hunger.for.resources..As.there.seems.
no.let.up.in.the.growth.of.these.economies,.high.commodity.prices.are.likely.to.be.a.feature.for.
some.time.to.come.
Although. the.contribution. to.GDP.by.diamond.mining. far.exceeds. that.of.non-diamond.mining.
operations,.we.are.likely.to.see.a.dramatic.increase.in.the.value.added.contribution.of.non-diamond.
mining.to.our.economy..Value.added.from.our.industry.has.grown.from.N$1.084.billion.in.1990.to.
N$3.576.billion.in.2005..The.ratio.of.contribution.between.diamond.mining.to.non-diamond.mining.
has.shifted.from.50/50.in.1990.to.90/10.in.2004.respectively.according.to.Insight,.as.non-diamond.
mining.operations.battled.to.make.ends.meet.in.response.to.the.strength.of.the.local.currency.
Mining exports represented just over 50% of total exports in 2004. This figure is likely to increase
significantly over the 2005/2006 period.
The Energy SituationAs.the.winter.of.2006.approached,.it.became.clear.that.Namibia.would.experience.a.shortage.of.
power..Apart.from.the.Ruacana.hydro-electric.plant.which.provides.up.to.one.half.of.the.country’s.
electricity. requirements,.Namibia. is.dependent.upon.South.Africa. for. the.majority.of. its.power..
The.Namibian.high.voltage.reticulation.is.sourced.from.the.Cape.and.is.thus.dependent.upon.the.
nuclear.power.plant.at.Koeberg..Eskom,.the.South.African.power.utility,.announced.a.failure.in.
one.of.the.nuclear.reactors,.unfortunately.coinciding.with.the.maintenance.of.the.second.reactor..
Major.load.shedding.strategies.were.implemented.in.the.Cape.and.restrictions.were.placed.on.the.
quantity. of. power. delivered. to. Namibia.. NamPower. proactively. called. for. a. meeting. of. major.
power.consumers..Prior.to.this.meeting.the.Chamber.Council.coordinated.the.industry’s.approach.
to.NamPower,.ensuring. that.mining.would.
be. prioritized. and,. in. the. event. of. load.
shedding,. ample. warning. would. be. given.
to. our. operations.. Skorpion. Zinc,. which.
alone. consumes. up. to. 20%. of. Namibia’s.
power,. was. constantly. in. touch. with. both.
NamPower. and. Eskom. as. it. carried. out.
significant load shedding. Cooperation
between. the. Chamber. and. NamPower.
resulted.in.very.little.inconvenience.for.our.
operations.......
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The Chamber’s Burning IssuesThe. issue.of. royalty. tax.has. absorbed.much.of. the.Chamber’s. time.over. the.past. two.years,. as.
have.our.other.“burning.issues”.of.Black.Economic.Empowerment,.Transfer.Pricing,.and.Minerals.
Beneficiation.
The.Chamber.has.consulted.extensively.with.the.government.on.these.issues,.
making.the.position.of.our.members.clearly.known..We.wholeheartedly.support.
and.endorse.the.need.for.Broad.Based.Black.Economic.Empowerment.as.a.means.
of.realigning.the.distribution.of.wealth.and.strengthening.the.economic.backbone.
of.our.economy..We.have.proposed.a.multi-faceted,.non.prescriptive.approach,.
termed.our.“seven.pillars.of.empowerment”..We.trust.government.will.take.our.
views.into.account.as.it.formulates.the.national.policy.on.empowerment..
We.also.fully.support. the.government.in. its.efforts. to.stamp.out. the.practice.of. transfer.pricing,.
which.we.do.not.tolerate.among.our.member.institutions..
We have attempted to demystify the issue of beneficiation, by demonstrating to
the. government. that. miners. are. not. good. manufacturers. and. manufacturers. are.
not good miners and that there is a very clearly defined barrier, beyond which
beneficiation is no longer the responsibility of mining companies, but that of
manufacturing.companies..Manufacturing.falls.under.the.ambit.of.the.Ministry.of.
Trade.and.Industry..We.have.proposed.to.Minister.Nghimtina.that.a.joint.committee.
comprising. of. the. Chamber. of. Mines,. and. the. Ministries. of. Mines. and. Energy.
and Trade and Industry, should be set up to identify and recommend beneficiation
opportunities. for.minerals.and.metals. in.Namibia..Although. this.committee.has.
not.yet.been.established,.we.remain.committed.to. that.process,.but. insist. that. it.
remains.the.domain.of.the.manufacturing.sector.that.is.so.poorly.developed.in.our.country.
The Chamber Establishes the Mine Rehabilitation and Closure CommitteeAnother.milestone.for.the.Chamber.has.been.the.establishment.in.2006.of.the.Mine.Rehabilitation.
and. Closure. Committee.. In. the. absence. of. governing. legislation,. Chamber. members. intend. to.
ensure.that.the.industry.adopts.the.highest.environmental.and.social.standards.for.mine.closure.and.
rehabilitation. To this end, the first meeting of this committee took place in August 2006 and set
as.its.main.objective.the.establishment.of.minimum.standards.among.Chamber.members.for.mine.
closure,.mine.rehabilitation.and.after.care.
The.committee.has.set.its.own.terms.of.reference.within.the.context.of.minimum.standards.for.our.
mining industry, ensuring that closure plans are site specific, and that they not only concentrate
on.environmental.rehabilitation,.but.also.take.into.account.the.often.disastrous.social.implications.
of mine closure. It was decided at the first meeting of this committee, under the Chairmanship
Wehaveproposedour“sevenpillarsofempowerment”andwetrustgovernmentwilltakeourviewsintoaccountasitformulatesthenationalpolicyonempowerment.
Minersarenotgoodmanufacturersandmanufacturersarenotgoodminersandthereisaveryclearlydefinedbarrier,beyondwhichbeneficiationisnolongertheresponsibilityofminingcompanies,butthatofmanufacturingcompanies.
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of.the.President.of.the.Chamber,.that.all.future.meetings.would.take.place.on.site.at.the.various.
operations. The first such site meeting, led by the committee’s newly elected chairperson, Mr Rainer
Schneeweiss,.took.place.at.Rössing.mine.in.November.2006..Council.looks.forward.to.receiving.
the.recommendations.of.this.committee.and.the.establishment.of.a.set.of.minimum.standards.that.
will.govern. the.manner. in.which.our.members.operate.as. responsible.corporate.citizens,.and.as.
world.class.mining.companies.
The Chamber Sets Ethical Standards As.part.of.its.strategic.planning.refocus,.the.Chamber.Council.agreed.upon.
various. ethical. standards. expected. of. our. members.. In. response. to. the.
shortage.of.skills.in.the.region,.the.Chamber.established.ethical.guidelines.for.
recruitment.of.personnel.from.within.Chamber.organisations,.which.will.be.
incorporated.into.the.Chamber’s.charter.as.a.policy.document....
The Chamber Undertakes a Skills Needs and Supply AnalysisIn.previous.years.the.Chamber.put.together.an.analysis.of.the.skills.required.by.our.industry.at.both.
the tertiary and artisan level. In its assessment of the threats to our industry, Council identified the
shortage of available skills as one of the most critical issues that would influence the effectiveness of
our industry in future years. Council identified that previous skills analyses were not as effective as
they.could.have.been,.owing.to.the.fact.that.any.analysis.would.have.to.be.dynamic,.all.embracing.
and.continually.updated.to.remain.relevant..Council.decided.to.appoint.a.professional.
consultant.to.this.process,.whereby.the.skills.needs.analysis.would.be.complemented.
by.an.analysis.of.the.students.and.artisans.from.each.of.the.operations.and.from.the.
government,.already.in.training.and.that.will.be.fed.into.our.industry.on.an.annual.
basis..
There.is.a.clear.need.for.the.industry.to.coordinate.its.training.and.skills.development.
across. the. board,. balancing. the. requirement. against. the.supply. of. graduates. and.
artisans already in the process of obtaining their qualifications. Cognisant of the skills
crisis,.Chamber.members.have.recently.increased.their.commitment.to.training.and.
skills.development..Our.members.invest.heavily.in.skills.and.in.many.cases.operations.
are.training.more.tertiary.students.(through.universities.and.technikons).and.artisans.
(through.NIMT).than.can.be.absorbed.by.their.own.companies..Clearly.this.creates.an.
opportunity.for.other.companies.and.especially.newcomers,.such.as.Langer.Heinrich.
Uranium..The.Ministry.of.Mines.and.Energy.also.provides.bursaries,.the.product.of.
which.is.often.taken.up.by.industry..The.upgrading.of.skills.is.viewed.as.one.of.the.
main.pillars.of.the.Chamber’s.empowerment.policy..Pursuant.to.this,.the.Chamber.
invited. the. executive. director. of. the. Namibian. Institute. of. Mining.Technology. to.
become. a. member. of. Council.. Mr. Müller’s. contribution. at. Council. meetings. has.
dramatically. improved. the. coordination. of. skills. development. and. alignment. of.
TheChamberestablishedethicalguidelinesfortherecruitmentofpersonnelfromwithinChamberorganisations.
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The. Namibian. Institute. of. Mining.Technology. (NIMT). was. founded. shortly. after.independence.in.1990..Located.in.the.mining.town.of.Arandis.near.Rössing.mine,.its.mission.is.to.provide.the.skilled.artisans.required.by.Namibia’s.mining.industry..Under. the.enduring. leadership.of.Mr.Eckhart.Müller,.NIMT.has.grown.to.a.stage.where, for the first time in 2005, it had taken in 900 trainees and produced 120 artisans over.12.trades..Of.these.trainees,.590.have.bursaries..NIMT.has.a.staff.of.65.and.all.lecturers and training officers have completed the assessor training accredited by the South African Qualifications Authority (SAQA). It has a NOSA 5 star platinum safety.rating..NIMT.is.governed.by.an.independent.board.of. trustees.which.meets.three.times.a.year..In.2005.it.had.a.turnover.of.N$16.million.
Private.Bag.5025,.SwakopmundTel:..064.510.126/138Fax:..064.510.369Email:[email protected]
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Namibian Institute of Mining Technology
training.with.the.technical.requirements.at.our.operations..As.part.of.the.skills.alignment.process,.
the.Chamber.initiated.ongoing.reciprocal.visits.by.NIMT.lecturers.and.engineers.from.the.mines.
to.NIMT.and.the.mines.
The Chamber Supports Small Scale MiningAs.mentioned.in.our.previous.review,.support.of.the.small.scale.mining.sector.has.become.an.area.
of strategic focus for the Chamber. Rössing and Navachab mines have significantly contributed
to. this.process..We.believe.the.Chamber.has.added.and.will.continue.to.add.much.value.to. this.
underdeveloped.sector.of.our.economy..Small.Scale.Mining.is.featured.in.this.review.
The Chamber Carries Out a Strategic Planning Process
Council,. at. its. meeting. of. 21. September. 2005,. made. a. decision. to. reassess. its. objectives. and.
develop.a.mission.and.vision.statement,.and.to.critically.examine.its.effectiveness,.perceived.status.
and.level.of.service.to.its.members..
The first strategic planning meeting of the Council took place on 23 February 2006 and was preceded
by.the.Council.meeting.on.the.previous.day.at.Okorusu.mine..The.workshop.was.moderated.by.
Mr.Bob.Meiring.and.was.attended.by.almost.all.Council.members..Exploration.companies.were.
encouraged to participate in this process. During the first session, strategic issues affecting the
mining industry and the Chamber were identified and discussed in detail, by way of a thorough
SWOT.analysis.
The.second.strategic.planning.session.of.the.Chamber.took.place.at.Skorpion.Zinc.mine.on.the.
30.September.2006..The.objectives.of.the.second.session.were.to.refocus.the.Chamber.on.a.new.
mission/vision. statement. and. to. critically. examine. the. SWOT. analysis,. by. way. of. identifying.
strategies.and.actions,.performance.indicators.and.targets.for.each.of.the.strengths,.weaknesses,.
opportunities.and.threats..
Members.were.unanimous.on.the.adoption.of.a.new.mission.and.vision.statement.
Mission:To efficiently promote, encourage, protect and foster responsible exploration and mining in Namibia, to the benefit of the country and all stakeholders.
Vision:To be acknowledged as the champion of the exploration and mining industry in Namibia.
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Once.strategies.and.actions,.performance.indicators.and.targets.had.been.agreed.upon,.Council.conducted.
its first litmus test of the Chamber’s effectiveness, with scores of red, orange and green attributed to the
Chamber’s.performance.on.each.strategy/action..It.was.agreed.that.this.test.would.be.conducted.at.each.
Council.strategic.session,.ensuring.a.process.of.continuous.improvement.at.the.Chamber..
The. strategic. planning. process. was. considered. a. resounding. success,. but. it. is. clear. that. there.
remain.enormous.challenges.for.the.Chamber.in.the.exciting.and.dynamic.environment.in.which.
we.operate..We.believe.we.are.up.to.these.challenges.and.intend.to.relentlessly.pursue.our.new.
goal…to.promote,.encourage,.protect.and.foster.responsible.exploration.and.mining.in.our.country,.
to the benefit of all stakeholders.
I.recently.came.across.the.national.school.curriculum’s.version.of.mining.in.Namibia,.as.it.is.taught.
to.school.learners.throughout.the.country..The.information.on.mining.was.out.of.date.by.at.least.
twenty.years..We.shall.ensure.that.as.many.schools.as.possible,.as.well.as.the.Namibian.Institute.of.
Educational.Development,.which.is.responsible.for.curricula.in.our.schools,.receive.several.copies.
of.our.review..Council.is.debating.the.establishment.of.a.promotional.video/DVD.on.mining.that,.
if.agreed.to,.would.be.shown.at.all.schools..We.hope.to.attract.the.best.gems.in.the.country.to.our.
exciting.industry..
I.wish.to.use.this.stage.to.acknowledge.the.professionalism,.passion.and.dedication.of.my.fellow.
colleague.at.the.Chamber..Our.new.General.Manager,.Veston.Malango,.has.taken.on.his.tasks.at.
the.Chamber.with.such.enthusiasm.and.commitment,.I’m.convinced.that.under.his.leadership,.the.
Chamber.can.only.grow.from.strength.to.strength..It.has.been.an.enormous.pleasure.for.me.to.work.
with.Veston.
The.President’s.review.would.not.be.complete.without.the.acknowledgement.of.the.input.of.one.
individual.who.undoubtedly.has.done.so.much.for.mining.in.Namibia..
Robin.Sherbourne.is.an.economist.with.a.passion.for.Africa,.intensely.focused.on.using.his.enormous.
talents.to.assist.our.country.and.our.continent.to.rise.out.of.the.quagmire.of.underdevelopment..He.
not.only.produces.this.review,.but.also.passionately.advises.both.the.Chamber.and.the.Government.
on. matters. of. policy. and. economics.. His. magazine,. Insight. Namibia,. has. been. heralded. as. the.
leading,.award.winning.current.affairs.magazine..Robin’s.unique.manner.of.setting.the.stage.for.
dialogue.and.discussion,.by.asking.questions,.but.not.proposing.answers,.has.made.us.all.a.little.
more. introspective. about. where. we. wish. to. see. our. industry. in. the. future.. Robin. also. recently.
authored. and. produced. what. is. perhaps. the. most. comprehensive. and. professional. publication.
ever.published.about.Nambia’s.mining. industry..Sponsored.by. the.Minerals.Development.Fund.
of.Namibia,. entitled. “Mining. in.Namibia:.Past.Performance,.Future.Prospects”,. the.publication.
contains. everything. the. investor. needs. to. know. about. mining. in. Namibia.. It. complements. our.
annual.review.perfectly.
We.at.the.Chamber.are.greatly.indebted.to.Robin!
Mark.Dawe
President
Chamber.of.Mines.of.Namibia
November.2006
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I:.Aren’t.government.and.the.Chamber.on.a.collision.course.over.a.number.of.big.issues.such.as.the.mining.royalty.tax.and.value.addition?
VM:.I.wouldn’t.describe.it.as.a.collision.course.but.we.have.a.difference.of.opinion..I.am.optimistic.it.can.be.resolved.
I:.But.what.room.is.there.for.compromise?
VM:.The.issue.is.not.that.the.mining.industry.doesn’t.want.to.pay.royalty..That.must.be.very.clear..Our.position.is.that.we.could.pay.royalty.but.then.you.have.to.look.at.the.whole.taxation.system..Currently.if.you.compare.in.the.region.our.corporate.tax.is.the.highest.at.37.5%..If.you.could.look.at.a.corporate.tax.rate.that.was.much.lower,.then.you.could.talk.of.imposing.a.royalty.of.between.1%.and.5%.
I:.Are.you.then.in.negotiations.with.government?
VM:.We.have.agreed.with.MME.what.is.the.way.forward.to.resolve.the.issue.around.the.royalty.tax..The.Ministry.has.set.up.a.committee.headed.by.the.Mining.Commissioner.which.would.invite.operations.to.come.and.present.and.say.why.they.cannot.pay.the.royalty.to.that.extent.and.to.show.the financial status of the operations. We have also agreed that the Chamber of Mines was to give the final presentation to the Minister to sum it all up. Now the importance of us coming last is because.we.appreciate.the.Minister.doesn’t.want.to.restrict.the.presentations.to.operating.mines..
“We are being proactive”
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The General Manager, Veston Malango, discussed a wide range of issues affecting the mining industry in an interview with insight magazine during 2006.
The.royalty.tax.is.creating.serious.problems.for.exploration.companies..We.as.the.Chamber.will.represent.the.exploration.companies..
I:..But.government.has.already.pencilled.in.N$30.million.from.this.tax.in.the.budget!
VM:.Government.is.listening..It’s.a.question.of.how.articulate.we.are.as.a.Chamber.to.drive.these.things.home..My.consolation.is.that.we.have.such.a.wonderful.working.relationship.
I:. . You. say. you. have. a. wonderful.working. relationship. but. from. the.outside.it.looks.more.like.the.dialogue.of.the.deaf?
VM:.Of.course,.the.manner.in.which.the.tax.was.announced.is.something.else..In.fact.industry.was.surprised and dismayed and immediately contacted the Office of the Mining Commissioner. The biggest.consolation.is.the.fact.that.the.Minister.admitted.that.it.shouldn’t.have.been.announced.in.the.way.it.was.and.I.think.that.is.positive..I.like.to.believe.the.Ministry.erred.just.like.anyone.else.
I:..But.isn’t.government.working.on.a.new.tax.in.the.new.Minerals.Act?
VM:.That’s.what.I.hear.but.a.few.weeks.ago.I.received.a.letter.from.the.PS.of.Mines.inviting.me.to.MME’s.Minerals.Bill.committee.to.work.on.the.current.Minerals.Bill.which.I.understand.is.with.the.legal.drafters..We’re.going.to.relook.at.all.these.issues.and.to.make.sure.that.the.interests.of.the.industry.are.taken.care.of.
I:.So.is.the.Chamber.convinced.that.the.industry.is.doing.as.much.value.addition.in.Namibia.as.is.economically.viable?
VM:.Unfortunately.that.is.the.perception.that.is.out.there..We.are.very.much.aware.of.it..One.of.our.main.challenges.is.to.change.that.perception..There.are.a.lot.of.myths.about.value.addition..My.job.is.to.demystify.value.addition.
I:.Well,. let’s. try. and. demystify. it..Which. mining. operations. in. Namibia. have. the. potential. for.greater.value.addition?
VM:.That’s.a.good.question..You.have. to. look.at. it. from.the.economic.point.of.view..I’m.now.driving two concepts within value addition: mining beneficiation and manufacturing beneficiation. I’m. simply. saying. there. is. an. end. line. beyond. which. the. mining. industry. cannot. put. anything.further in terms of beneficiation. Anything that happens thereafter to our mineral products should be seen as manufacturing beneficiation.
I:. Does. the. Chamber. believe. there. is. potential. for.more.cutting.and.polishing.of.diamonds.in.Namibia?
VM: The Chamber supports all forms of beneficiation. I was involved in the Diamond Act which.paved.the.way.for.diamond.cutting.and.polishing.and.I’m.very.proud.of.that.piece.of.legislation..There. is.a.concern. that. the.cutting. factories.are.struggling. to.get. the. rough. they.need.
I:. Because. government. hasn’t. invoked. the. relevant. sections. of. the. Diamond. Act?. All. these.companies.have.come.here.in.the.mistaken.belief.that.they.would.have.access.to.Namibia’s.rough.diamonds.
VM: If the cutting industry is to flourish there has to be rough. The sections you are referring to were.meant.to.make.provision.for.this.
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“If you expect the mining multinationals to do the industrialisation for you then you are in for a big surprise.”
“The Chamber supports all forms of beneficiation.”
I:.So.why.hasn’t.this.happened?
VM:. My. understanding. is. that. this. is.precisely. what. is. being. looked. at. in. the.negotiations.that.are.going.on..Government.is. working. on. that.. I’m. not. privy. to. the.outcome.. My. understanding. from. the.media.is.that.there.is.a.stalemate.
I:.But.does.the.Chamber.believe.potential.exists?
VM:. There. is. potential.. But. the. point. I’m. making. here. supports. my. concept. of. mining. and.manufacturing beneficiation. Cutting and polishing is outside the ambit of mining companies. The.point.I’d.like.to.make.is.that.mining.thrives.on.inherited.comparative.advantages.–..mineral.resource.endowment,.land.and.low.cost.labour..Manufacturing.thrives.on.competitive.advantages.–.skills,.knowledge,.technology.–.which.have.got.to.be.acquired.or.created..Our.position.is.that.we.would.like.to.assist.the.Ministry.of.Trade.and.Industry.to.advise.how.value.addition.based.on.our.mineral.products.can.be.enhanced..Mining.creates.a.platform.for.industrialisation.
I:.But.we’ve.seen.many.countries.with.thriving.mining.industries,.especially.in.Africa,.not.going.that.further.step.
VM:.That’s.my.point..If.you.expect.the.mining.multinationals.to.do.the.industrialisation.for.you.then.of.course.you.are.in.for.a.big.surprise..You’ve.got.to.bring.in.other.multinationals.who.are.traditionally. in. manufacturing. and. that. will. depend. on. your. economic. environment.. And. that.environment.is.what.we.are.saying.to.Trade.and.Industry,.we.want.to.help.the.government.to.create.it.
I:.You.mentioned.Ongopolo.but.we.know.things.are.not.going.well.there..Has.the.company.been.run.on.business.principles?.Does.it.have.a.sustainable.business.future?
VM:. I.believe.it.has.a.future..We’ve.got.resources..We.need.to.do.much.more.exploration..The.results.of.all.the.money.and.government.guarantees.are.there.for.all.to.see.at.Otjihase.exploration.drilling.and.Kombat.shaft.sinking.project.which.is.now.complete.
I: Isn’t the hard reality that Ongopolo was insufficiently capitalized when it was set up and we tried to.do.BEE.on.the.cheap?
VM:. Certainly. Ongopolo. needed. much. more. money. to.do. the. exploration. but. who. would. give. the. money?. My.understanding. is. that. government. has. sanctioned. the. deal.between. Ongopolo. and. Weatherly. International.. No. one.wants.to.see.Ongopolo.fail.
I:..Is.Weatherly.a.good.strategic.partner?
VM:.Weatherly. is. not. the. best. option. but. you. see,. we’ve.got.a.precarious.situation..It’s.either.Weatherly.or.Ongopolo.falls.down..Ongopolo. is. in. such.a.situation. that.you.can’t.bargain. from. such. a. weak. position.. If. Ongopolo. had. had.discussions.even.six.months.ago.I.think.we.would.have.had.a.better.deal.
I: From.the.outside.the.Chamber.has.always.seemed.a.rather.sleepy organisation with a very low public profile. As new
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“The Chamber has cautioned the Ministry that it should not go along the prescriptive South African route of empowerment.”
GM.will.you.do.anything.differently.from.your.predecessors?
VM:.We.are. looking.at.a.new.Chamber..My.position. is. that. it.has. to.be. revamped. to.meet. the.challenges.of.today..The.Chamber’s.members.are.expecting.much.more.than.before..We.want.to.be.proactive..We.now.have.a.Chamber.website.which.makes.information.available..People.are.excited..They.phone.me.up.from.all.over.the.world..Secondly.the.Chamber.and.government.have.no.choice.but.to.work.together.in.promoting.Namibia..We.made.a.resolution.to.promote.Namibia.jointly..This.year we were there at the mining indaba in Cape Town for the first time ever and by the way we had a.joint.booth.–.government.through.MME.and.the.private.sector.through.the.Chamber..It.can’t.be.better.than.that!.We.are.even.sharing.the.costs..The.thrust.of.the.new.Chamber.is.service.delivery..I.want.the.members.to.see.that.it.pays.to.belong.to.the.Chamber..I.must.tell.you.I’m.very.happy.with.the.response.that.I’m.seeing..I’m.actually.keeping.people.at.bay.from.joining..I’m.saying.you.wait.until.you.get.your.mineral.rights.then.I.will.table.your.application.to.the.Chamber’s.council..We.are.a.very.slim.Chamber,.but.we.are.trying.to.do.so.much.
I:. .Are.you.happy.with.the.performance.of.the.Ministry.of.Mines.and.Energy?
VM:. It. is. very. clear. that. Chamber.members. are. not. very. happy. with. the.performance. of. the. Ministry.. But. when.the. industry. says. it. is. not. happy. it’s. on.one issue – licensing and the Office of the Mining Commissioner. It is the slow pace at which mineral.rights.are.processed..On.other.matters.such.as.geological.data,.it.is.world.class..The.Mining.Commissioner has told us of the problems they are having. It starts with qualified staff to do the vetting of applications. His cry is that if he is given two or three additional qualified and experienced geologists, he can do wonders. We are asking government to recruit more qualified staff.
I:.But.isn’t.the.truth.that.you.as.an.industry.pinch.all.the.people.from.the.Ministry?.Government.pays.to.train.all.these.people.who.then.go.off.and.get.much.nicer.jobs.with.industry?
VM:.I.don’t.think.so..I.think.what.industry.does.is.good.for.government..The.Mining.Commissioner.needs geologists who have experience in the field not young students straight out of university. The best.the.Ministry.can.do.is.to.allow.graduates.to.go.on.job.attachments..That.is.what.the.Mining.Commissioner. needs.. If. government. lets. us. do. what. we. are. doing. right. now. we. will. take. this.country. to.greater.heights..The. investment.climate.as. far.as.mining. is.concerned.has.been.very.good.since.independence..Our.position.is.that.we.don’t.want.government.to.destroy.what.we.have.enjoyed.since.independence..The.situation.we.are.having.with.the.royalty.issue.has.the.potential.to.basically.disrupt.the.successes.we.have.built.to.date.
I:..You.say.we’ve.been.successful.under.the.Minerals.Act.but.the.hard.fact.is.we’ve.only.seen.one.new.mine.open.
VM: As.a.success.factor.you.can.use.the.number.of.mines.opened.since.independence.but.that’s.not.the.only.factor..We’ve.seen.a.lot.of.reinvestment.in.existing.operations.–.Namdeb,.Rössing,.Okorusu,. Navachab. –. which. is. basically. like. opening. another. mine!. But. coming. back. to. your.question,. commodity. prices. we. are. enjoying. now. have. stimulated. interest. in. exploration. but.investors.stayed.back.during.periods.of.bottom.metal.prices..Another.point.which.is.rarely.talked.about.is.the.issue.of.technology..Skorpion.was.not.there.because.the.technology.was.not.there.to.extract.zinc.from.an.oxide.ore.body.
I:.Is.the.industry.putting.enough.money.into.bursaries?
VM:.Yes. big. time.. Rössing. alone. is. funding. over. 80. bursaries. at. NIMT. alone..We. have. a. big.shortage.of.artisans..The.executive.director.of.NIMT.is.now.on.the.Chamber.council..NIMT.itself.
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“We don’t want government to destroy what we have enjoyed since independence.”
is.a.product.of.the.mining.industry!.The.Chamber.itself.had.to.sell. the.residence.of.the.General.Manager.in.an.up.market.residential.area.and.put.the.proceeds.in.an.investment.account..All.interest.generated is used to finance bursary students at NIMT every year. We’ve got to do much more than before..There’s.another. threat.. If.we’re.not. careful.we’ll. even. start. losing.our.artisans. to.South.Africa..
I:.Does.the.Chamber.have.a.view.on.how.a.BEE.policy.should.be.pursued.by.government?
VM:.A.few.years.back.we.were.requested.to.draw.up.a.mining.charter..What.the.Chamber.did.then.was. to. look.at.all.aspects.of.empowerment..Consequently. the.Chamber.has.come.up.with.what.we. are. calling. the. seven. pillars. of. empowerment:. ownership,. literacy. and. numeracy,. education.and training, employment practices, community development, procurement, and beneficiation. That.proposal.was.presented.to.the.Minister.of.Mines..In.fact.I.have.now.been.contacted.by.the.PS of Mines to join the Ministry to refine the various ideas including ours to produce the mining charter..At.the.same.time.the.Chamber.has.cautioned.the.Ministry.that.it.should.not.go.along.the.prescriptive.South.African.route.of.empowerment..We’re.privileged.to.be.able.to.learn.the.lessons.from.South.Africa..Whilst.the.intentions.are.good,.from.what.we.hear.the.results.are.not.what.was.intended..Empowerment. is.driving.away. investment..But. again.we.are.being.proactive.because.as.you.are.aware. there. is.no.national.policy.and. legal. framework.on.BEE..The.southern.mines.of.Namdeb,.Skorpion.and.Rosh.Pinah.together.formed.an.association.for.driving.empowerment.through. procurement.. The. Chamber. has. endorsed. this. initiative. and. together. with. MME,. the.Namibia.Preferential.Procurement.Council.was. launched. in.early.December.2005..My. job. is. to.encourage.other.Chamber.members. to. join. the.NPPC.because.we.believe. it. offers. an. excellent.opportunity.for.empowerment.
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AngloGold AshantiAngloGold Ashanti is the sole owner of Navachab mine near Karibib,
Namibia’s only gold mine. Navachab is an open pit mine which produces
gold bullion for export to the Rand gold refinery in South Africa. For more
information go to www.anglogoldashanti.com
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Production.at.Navachab.reached.81,000oz.in.2005.compared.to.67,000oz.in.2004..Although.the.
average gold price was below what had been budgeted during the first half of 2005, the second half
of.the.year.turned.out.much.more.favourably.and.the.year.ended.with.an.average.price.of.N$91,055.
compared.to.a.budgeted.price.of.N$90,200..Combined.with.an.increase.in.grade.to.2.05g/t.and.a.
decline in cash costs to US$321 thanks to increased volumes, Navachab exceeded budgeted profits
by.50%..However,.no.tax.was.paid.in.2005.due.to.the.capital.allowance.arising.from.the.N$138.
million.investment.required.to.change.to.owner.mining.in.the.previous.year.
Gold.production.is.expected.to.rise. to.between.81,000oz.and.85,000oz.in.2006..
The.main.pit. has. reached. its.maximum.depth.of. some.190m.so.mining. is. now.
taking.place.on.the.eastern.side.of.the.pit..A.smaller.satellite.pit.“Grid.A”.has.been.
established.which.will.allow.higher.grade.ore.to.be.blended.with.the.lower.grade.
from.the.main.pit.so.that.overall.production.can.be.maintained.during.the.coming.
two to three years using a separate fleet of smaller 35 tonne haul trucks working a
day shift five days a week.
Navachab.suffered.three.lost-time.injuries.in.2005.and.has.recorded.four.lost-time.injuries.to.date.
in.2006..Navachab.concluded.two-year.agreements.with.the.MUN,.the.current.one.of.which.is.due.
to.expire.at.the.end.of.2006..One.illegal.two-day.stoppage.took.place.in.June.involving.the.handing.
over.of.a.petition.against.certain.company.policies.and.conditions.of.service..These.issues.have.now.
been.taken.up.in.the.monthly.meetings.of.management.and.unions.
Navachab currently has six bursary students studying mining related qualifications in South Africa.
In.addition. the.mine.renewed.its. focus.on. training.and.development. in.2005.starting.a.business.
understanding.programme.which.aims.to.equip.all.employees.with.the.skills.that.enable.them.to.
understand.the.business.of.gold.mining.
Navachab. carried. out. exploration. within. the.
existing. mining. licence. area. as. well. as. in. the.
five EPL areas held by AngloGold Ashanti. This
included. RC. drilling,. mapping,. some. diamond.
drilling. and.a.high. resolution.magnetic. survey..
This.will. continue.during. the.coming.year. and.
provision.has.been.made.for.30,000m.of.further.
drilling.
Navachab. is. in. the. process. of. implementing.
ISO14001.by.the.end.of.2006.with.accreditation.
expected to take place in the first quarter of
2007..This.will.lead.to.a.further.improvement.of.
the. mine’s. environmental. management. system..
• Gold price above US$500/oz throughout reporting period
• Production up to 8�,000oz in �005 from 6�,000oz in �004
• Commenced with pit extension extending life of mine to �0��
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Shareholders AngloGold Ashanti Ltd �00%Mines in Namibia Navachab gold mine near Karibib (ML��)Date of production start �989Latest life of mine estimate �0��Output in �005 �,5�9 kg (8�,000oz)Permanent employees at end �005 ��0Contractors at end �005 8Expatriate employees at end �005 4Turnover in �005 N$��0.5 millionWages and salaries in �005 N$40.� millionFixed investment in �005 N$44.9 millionExploration and prospecting in �005 n/aProfits in �005 N$�5.9 millionCorporate tax paid in �005 NilRelated operations in Namibia None
EPLs at end of �006EPL999, EPL�69�, EPL�858, EPL���5, EPL���6
Safety ratings at end of �005 4 star NOSAAffirmative Action plan approved yesNumber of bursaries awarded in �005 6General Manager Mr Gerry ArnatContact details PO Box �50, Karibib
Tel: +�64 64 55�0��Fax: +�64 64 550���Email: [email protected]
Navachab.mine.holds.regular.stakeholder.meetings.with.the.community,.the.last.of.which.was.held.
in.April.2006.but.no.issues.of.concern.were.raised..The.use.of.cyanide.in.the.recovery.of.gold.is.
a.core.concern.for.the.gold.mining.industry.and.is.critical.to.its.viability..AngloGold.Ashanti.was.
party to the development of the International Cyanide Management Code and was one of the first
signatories.announced.in.November.2005..
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De.Beers.Marine.Namibia.(DBMN).mined.over.4.8.square.kilometers.in.the.Atlantic.1.concession.
area.during.2005.producing.a.record.920,000.carats.of.rough.diamonds.compared.to.an.original.
budget. of. 4.4. square. kilometers. and. 820,000. carats.. Mid-water. concessions.
mined.under.contract.by.DBMN’s.BEE.partner.EPIA.contributed.29,600.carats.to.
overall.output.to.bring.the.total.output.to.950,000..The.exceptional.performance.
in Atlantic 1 was mainly due to DBMNs significant improvements in efficiencies
driven. partly. by. implementation. of. R&D,. an. incentive. bonus. scheme. and.
increased assets utilisation. DBMN currently operates five production vessels:
mv Debmar Atlantic (14,952t), mv Debmar Pacific (14,952t), mv !Gariep (10,498t), mv Grand
Banks(10,424t),.and.mv.Ya.Toivo...A.feasibility.study.is.in.progress.for.an.additional.mining.vessel.
which,.if.viable,.will.commence.production.in.2009.
De Beers MarineNamibiaDe Beers Marine Namibia is the marine prospecting and mining contractor
for Namdeb’s Atlantic 1 concession. For more information go to
www.namdeb.com or Namdeb Annual Review 2005 and
“Twelve Important Facts About Knowing Us”.
• Record production of 922,000 carats in 2005 outstrips land production for the first time ever
• OHSAS 18001 certification obtained for the first time.
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Due to the complex nature of a patchy marine resource, significant vessel days (97 days) were spent
sampling.during.2005.in.an.effort.to.develop.the.reserves.to.sustain.the.mining.operations.in.the.future...
An.attempt.to.sample.areas.covered.under.thick.mud.overburden.was.made...The.results.indicated.
that. further. technical.development.work.on. the.sampling. tool. is. required..DBMN.achieved.5.star.
platinum NOSCAR certification from the NOSA Integrated SeaSafe System, the International Safety
Management (ISM) certification and the Occupational Health and Safety Advisory Services (OHSAS)
18001 certification. A total of 4 lost-time injuries were recorded in 2005. The LTIFR was 0.32 for 2005.
DBMN was recertified to ISO 14001 in December 2005 and initiated an environmental stakeholder
engagement.strategy.to.ensure.that.all.stakeholders.including.the.general.public.and.employees.of.the.
company.are.aware.of.the.importance.of.the.company’s.environmental.research.and.its.commitment.
to.the.environment..The.existing.Environmental.Impact.Assessment.and.Environmental.Management.
Plan.were.updated.for.the.pre-feasibility.phase.of.the.marine.dredging.project.
Labour. relations. continued. to. be. characterized. by. an. atmosphere. of. constructive. engagement.
between.management.and.the.two.joint.unions,.the.Mineworkers.Union.of.Namibia.(MUN).and.the.
National.Union.of.Mineworkers.of.South.Africa.(NUM).
In. September. 2005. management. and. unions. signed. a. revised. Flexibility.Agreement. to. regulate.
flexible work practices and to ensure that employees meet the operational challenges faced by
the.company..The.agreement.is.critical.in.facilitating.the.adaptability.and.mobility.of.employees.
within.and.between.departments..The.company.and.unions.concluded.a.two-year.wage.agreement.
in.August.2005.covering.the.period.1.April.2005.to.31.March.2007.
DBMN.supported.a.variety.of.community.initiatives.in.Namibia.through.its.Social.Responsibility.
Committee..DBMN.donated.almost.N$300,000.to.projects.involving.education.and.skills.training,.
the.environment.and.community.development.
Shareholders De Beers 70%Government of Namibia 30%
Mines in Namibia NoneEstablished January 2001Output in 2005 922,000 caratsPermanent employees at end 2005 596Contractors at end 2005 NoneExpatriate employees at end 2005 176Related operations in Namibia NoneEPLs at end of 2006 None
Safety ratings at end of 2004 5 star platinum certification with NOSCAR status. OHSAS 18001 certification
Affirmative Action plan approved yesNumber of bursaries awarded in 2005 8Managing Director Mr Otto Shikongo
Contact details
PO Box 23016, WindhoekTel: + 264 61 297 8400Fax: +264 61 297 8140Email: [email protected]
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Langer Heinrich uranium mine is Namibia’s second uranium mine and the world’s first all new
conventional.uranium.mine.in.two.decades..The.owner.of.Langer.Heinrich.is.Paladin.Resources.
which. is. listed.on. the.ASX.and.TSX.and.has. subsidiary. listings.on. four. regional. exchanges. in.
Germany..Paladin.gained.the.mineral.rights.when.it.purchased.the.Namibian.registered.company.
Langer.Heinrich.Uranium.(Pty).Ltd.from.Acclaim.Uranium.in.August.2002.
Since.then.Paladin.has.spent.US$92.million.to.get.the.mine.operational.in.four.
years.. Zero. lost-time. injuries. were. achieved. in. the. construction. of. the. mine..
Construction. was. undertaken. by. engineering. contractor. GRD. Minproc. and. a.
range.of.subcontractors.including.Group.5.and.Murray.&.Roberts.led.by.project.
manager. Jim.Morgan..The.mine.was.commissioned.on.28.August.2006.–.one.
Langer Heinrich Uranium
Langer Heinrich uranium mine is owned by Paladin Resources which is listed
on the Australian and Toronto stock exchanges. Langer Heinrich will shortly
commence production of uranium oxide “yellow cake” for export to power
utilities worldwide. For more information go to www.paladinresources.com.au
• Commissioning ahead of time and to budget of new US$9�
million uranium mine
• Uranium prices reaching record highs of US$��/lb at the time of
going to press
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Shareholders Paladin Resources (Pty) Ltd (�00%)Mines in Namibia Langer Heinrich ML�40Date of production start December �006Latest life of mine estimate �0��Output in �005 0Permanent employees at end �005 �0Contractors at end �005 550Expatriate employees at end �005 �Fixed investment in �005 N$580 millionManaging Director Garnet HallidayGeneral Manager Wyatt Buck
Contact details
PO Box �56, SwakopmundTel: +�64 64 40� 6�0Fax: +�64 64 40� 659Email: [email protected]
month.early.–.and.is.due.to.start.full-scale.production.by.December.2006..Langer.Heinrich.will.
produce. 1,080. tonnes. (2.6Mlb). of. uranium. oxide. –. UO4.H2O “yellow cake” – a year. The first
contracted shipment of uranium oxide concentrate is expected to be shipped late in the first quarter
of.2007.with.production.ramp-up.reaching.full.capacity.by.the.third.quarter.of.the.same.year..
Langer.Heinrich.will.exploit.a.deposit.with.an.ore.grade.of.0.08%,.some.three.times.higher.than.
Rössing’s..In.contrast.to.Rössing,.the.uranium.ore.is.not.contained.in.granite.but.in.sediment.making.
it.much.easier.and.less.water.intensive.to.mine..Langer.Heinrich.will.employ.an.innovative.alkaline.
rather than acid leaching process to separate out the uranium from the ore, the first time the process
has.been.used.on.such.a.scale..In.the.past.year.Langer.Heinrich.conducted.11,000m.of.RC.drilling.
over.a.5km.area.to.the.west.of.previous.drilling.so.that.its.inferred.resource.has.increased.by.52%.
The. General. Manager. of. the. mine. is.
Canadian. national. Wyatt. Buck. who.
previously.worked.for.Canada’s.Cameco.
at.McArthur.River.and.Key.Lake,.among.
the. largest. uranium. mines. in. the. world..
Langer. Heinrich. is. planning. to. achieve.
ISO14001 certification next year and
has. already. established. a. community.
information.forum.which.holds.meetings.
every.quarter.in.Swakopmund.and.Walvis.
Bay.
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Namdeb
Namdeb is a 50:50 partnership created in 1994 between De Beers and the
Government of Namibia. Namdeb has long-term mining concessions in
the south west of Namibia both on land, adjacent to the Orange River and
offshore. All Namdeb’s rough diamonds are sold to De Beers’ Diamond Trading
Company where they are sorted, mixed and sold to sightholders and to other
buyers through Diamdel. Namdeb owns 30% of De Beers Marine Namibia,
which mines its offshore Atlantic 1 concession, and 100% of NamGem in
Okahandja which cuts and polishes diamonds bought from the DTC with
the assistance of a technical partner Lazare Kaplan International. For more
information see Namdeb’s Annual Review 2005 or go to
www.namdeb.com or www.debeersgroup.com
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Namdeb’s.annual.review.for.2005.was.entitled.“Ten.Million.Carats.by.2010”.signaling.the.company’s.
intent. to. raise. average. annual. production. levels. above. those. achieved. since. 1990. in. the. face. of.
declining.land.reserves..At.1.8.million.carats,.production.in.2005.was.marginally.down.on.the.1.9.
million produced during the record year of 2004. However, for the first time ever more diamonds
were.mined.from.the.Atlantic.1.concession.–.922,000.carats.–.than.elsewhere.thanks.to.the.efforts.
of.De.Beers.Marine.Namibia.and.its.shallow.water.contractor.Epia..Demand.for.rough.diamonds.is.
expected.to.remain.strong.over.the.coming.year..However,.given.the.current.high.levels.of.debt.in.
many.of.the.world’s.cutting.centres,.price.increases.are.likely.to.be.nominal..During.2006,.Namdeb.
will be investing for the future and plans significant expenditure on new capitalas well as research
and.development.
Namdeb.holds.six.mining.licences:.Mining.Area.1,.Bogenfels.and.Elizabeth.Bay.
licences,.which.extends.from.the.Orange.River.in.the.south.to.Lüderitz.in.the.
north.and.from.a.few.kilometers.offshore.in.the.Atlantic.Ocean.to.between.20km.
and.35km.inland;.Douglas.Bay,.which.extends.north.of.Lüderitz.for.some.60km.
and.approximately.15km.inland.of.the.Atlantic.high-water.mark;.Orange.River,.
which.extends.along.the.Orange.River.for.about.50km.inland.from.the.Mining.
Area.1.boundary;. and.Atlantic.1.which.encompasses.a.portion.of. the.middle.
shelf.of.the.Atlantic.Ocean.from.the.boundary.of.Mining.Area.1.to.about.65km.
from.the.shore..Namdeb.is.currently.investing.in.a.variety.of.new.techniques.and.
technologies.to.extend.the.life.of.its.onshore.operations.
A. shallow. water. marine. dredging. trial. was. carried. out. in. Chameis. Bay.. In.
January. and. February. 2005. the. vessel. mv. Phillipo. Bruneleschi,. was. hired. from. international.
dredging.contractor.Jan.de.Nul.to.dredge.and.pump.500,000t.of.shallow.water.mineralized.gravel.
to.paddies.for.treatment.at.the.Pocket.Beach.Site.2.plant..The.main.objectives.of.this.trial.–.pipeline.
construction.and.positioning,.dredging.cleanup,.pumping.and. reclamation,. the.assessment.of. its.
environmental.impact.and.the.removal.of.the.pipeline.–.proved.successful..Subsequent.approval.
was.granted.for.a.larger.scale.trial.project.in.the.Atlantic.1.licence.area.which.involves.dredging.
from.the.Atlantic.1.area.using.the.Jan.de.Nul.vessel.mv.Vasco.da.Gama.as.well.as.the.design.and.
construction.of.a.treatment.plant.and.infrastructure.to.recover.diamonds.from.the.dredged.material..
The.information.gathered.from.this.trial.will.form.the.basis.of.a.feasibility.study.into.the.long-term.
viability.of.marine.dredging.
The.seawalker.platform.was.tested.as.a.secondary.mining.system.prototype.in.the.dredge.pond.for.
2005..The.objective.was.to.determine.the.effectiveness.of.this.type.of.wet.mining.method.compared.
• Diamond sales maintained at N$4 billion
• Offshore diamond mining exceeds onshore for the first time ever
• Excellent performance from Orange River mines
• Further improvement in overall safety
• ISO �400� certification retained
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to.the.conventional.bedrock.bulk.excavation.and.cleaning.method.
The.Jet.Rig.Platform.operated.as.a.sampling.tool.in.the.Inter.Tidal.Corridor.in.2005.where.three.
sample.panels.were.successfully.completed.
The.Elizabeth.Bay.Resource.Extension.project.was.handed.over.to.the.production.team.but.ramp-
up.progressed.slower.than.anticipated.
The.Pocket.Beaches.Mine.Phase.2.project.aims.to.mine.the.deposits.at.sites.11.and.12.in.2007..
High levels of confidence have now been achieved in the estimate and the technical aspects of the
cut-off.wall.concept.where.the.greatest.project.risk.lies..Approval.for.this.N$217.million.project.
was.granted.in.August.2005.
The. Optimised. Recovery. By. Innovative. Technologies. (ORBIT). project. aims. to. increase. the.
processing rate of the recovery tailings by a factor of five using innovative technologies such as
wet.X-rays.and.optical.sorters..This.fast.track.project.was.approved.at.the.beginning.of.2005.and.
commissioned.in.December.2005.
Namdeb.recorded.4.million.fatality. free.shifts.since. the. last. fatality.occurred. in.February.2002..
During.the.last.reporting.period,.Namdeb.recorded.2.13.its. lowest.ever. lost. time.injury.severity.
rate. and. a. 65%. improvement. against. the. previous. year..All. of. Namdeb’s. operations. have. been.
audited.on.the.NOSA.integrated.safety,.health.and.environmental.system.and.all.three.operations.
achieved. 5. star. platinum. grading. and. NOSCAR. status.. Mining. Area. No. 1. retained. its. third.
consecutive.NOSCAR,.Orange.River.mines.their.seventh.and.Elizabeth.Bay.mine.its.eighth..All.
three.Namdeb.operations.were.listed.in.the.International.Top.100.for.world.class.Safety,.Health.and.
the.Environment.(SHE).performance.
Notwithstanding.a.near.one.hundred.year.history.of.mining.in.Namibia’s.mega-placer.diamond.deposit,.
Namdeb.and.its.partners.continued.to.conduct.extensive.exploration.and.evaluation.sampling.operations.
throughout.its.mineral.licences.
In.central.and.southern.Mining.Area.1,.a.recently.purchased.large.diameter.bucket.auger.drill.is.
being.used.to.evaluate.beaches.in.areas.of.accreted.shoreline..The.same.tool.will.be.used.to.sample.
diamond. resources. contained. in.
the. 60. to. 80. million. ton. tailings.
dumps. for. future. retreatment.
operations.. A. specially. designed.
mobile.sampling.unit,.the.“Jet.Rig”.
is.being.used.to.explore.the.inter-
tidal.and.surf.zone.areas.bordering.
the. conventionally-mined. linear.
beaches.of.Mining.Area.1.
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Drilling of the Meso-age fluvial deposits of the
Orange. River. was. started,. while. planning. of. a.
second.phase.of.evaluation.sampling.of.the.Proto-
age.Sendelingsdrif.deposit.is.underway.
In. Mining. Area. 1,. mining. licence. extensions. to.
the. known. resources. at. the. Elizabeth. Bay. and.
Pocket.Beaches.Mines.are.being.investigated.while.
exploration. and. evaluation. sampling. continues.
in the deflation valleys of those licences and the
Douglas.Bay.licence.
Prospecting.for.primary.kimberlite-hosted.diamond.
deposits. was. started. in. the. Caprivi. in. northern.
Namibia where an aeromagnetic survey was flown over a reconnaissance licence area RL 84.
Namdeb.maintained.constructive. relationships.with. its. employees.and. social.partners..No.work.
stoppages. or. labour. unrest. was. experienced. during. 2005. and. a. two-year. wage. agreement. was.
reached..Namdeb. spent.over.N$18.million.on.employee. training.and.development.programmes.
which. has. four. main. components:. technical. training. and. skills. upgrading,. supervisory. and.
management.training,.university.bursaries,.and.assistance.with.self-study..Namdeb.awarded.eight.
university.bursaries.bringing.the.total.to.46.
Most.of.Namdeb’s.operations.are. located. in. the.Namib.desert. far. from.any.human.settlements..
However,.through.its.Social.Fund,.the.company.invests.over.N$2.5.million.a.year.in.community.
projects.aimed.at.improving.social.welfare,.access.to.basic.services,.education,.health.as.well.as.
promoting.arts.and.culture..Namdeb.is.committed.to.contributing.to.the.sustainable.development.
of.the.communities.in.which.it.operates.and.has.adopted.a.range.of.policies.and.programmes.to.
achieve.this..In.order.to.secure.the.sustainable.future.of.Oranjemund,.a.special.purpose.company.
Oranjemund.Town.Management.Company.(OTMCo).was.established.to.manage.the.issues.relating.
to.the.future.of.the.town.once.mining.has.ceased..Namdeb.also.created.a.special.purpose.vehicle,.
the. Oshipe. Development. Fund. to. support. the. development. and. growth. of. Small. and. Medium-
sized Enterprises in Namibia, through financing, equity participation, and business, technical and
managerial.support.services.
Namdeb’s.Environmental.Management.System.(EMS).was.audited.by.the.South.African.Bureau.of.
Standards.(SABS).during.September.2005..The.EMS.continued.to.comply.with.the.ISO.14001:1996.
requirements.and.great.progress.has.been.made.towards.upgrading.to.the.ISO.14001:2004.
Namdeb supports the economic beneficiation of minerals in Namibia in order to contribute towards
skills.development.and.job.creation.in.line.with.the.Government’s.national.development.objectives..
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For. this. reason,. Namdeb. continues. to. invest. in. NamGem,. its. cutting. and. polishing. factory. in.
Okahandja.. The. presence. of. a. skilled. and. experienced. technical. partner. in. the. form. of. Lazare.
Kaplan.International.is.already.proving.its.worth.with.production.rising.by.42%.in.2005.to.24,000.
rough.carats..Operational.capacity.improved.and.a.new.preparation.unit.for.planing.and.sawing.was.
introduced.which.allows.the.company.to.prepare.its.own.goods.
Namdeb’s.shareholders.are.currently.reviewing.the.marketing.agreement.that.forms.the.basis.for.
their.50:50.partnership.
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ShareholdersGovernment of Namibia 50%De Beers 50%
Concessions in Namibia
Orange River (ML4�)Mining Area � (ML4�)Bogenfels (ML44)Elizabeth Bay (ML45)Douglas Bay (ML46)Atlantic � (ML4�)Midwater (ML ��8 A, B and C)
Date of production startSince the �9�0sOrange River �990
Latest life of mine estimate From 5 to �5 yearsOutput in �005 �,��4,409 caratsPermanent employees at end �005 �,956Contractors at end �005 ��0Expatriate employees at end �005 55Turnover in �005 N$4,000.0 millionWages and salaries in �005 N$56� millionFixed investment in �005 N$��6 millionExploration and prospecting in �005 N$�4.5 millionProfits in �005 N$��� million
Corporate and royalty tax paid in �005
N$6�0 million
Related operations in Namibia
De Beers Marine NamibiaNamGem Diamond Cutting and Manufacturing CompanyDTC NamibiaDiamdel Namibia
EPLs at end of �006EPL���6, ����, EPL (Caprivi) �605, �606,�60�, �608, �609, �6�0, �6��
Safety ratings at end of �004 5 star platinum NOSCARAffirmative Action plan approved yesNumber of bursaries awarded in �005 8 bringing the total to 46
Managing DirectorGeneral Manager
Ms Inge ZaamwaniMr Chris Sivertsen
Contact details
PO Box �906, WindhoekTel: +�64 6� �04 ����Fax: +�64 6� �04 ���4Email: [email protected]
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Okorusu Fluorspar mine near Otjiwarongo, owned and operated by chemicals
and pharmaceuticals giant Solvay, is an open pit mine producing 97.5% pure
acid grade fluorspar for export to Solvay’s plants in Germany and Italy, where
it is turned into hydrofluoric acid for use in the production of refrigerants,
plastics, chemicals and pharmaceuticals. For more information go to www.
solvay.com or www.solvayflour.com
Okorusu Fluorspar
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Production at Okorusu mine has been increasing significantly in both quantity
and. quality. since. Solvay. bought. the. operation. in. 1997.. In. 2005. Okorusu.
produced 114,886wmt of fluorspar of 97.5% purity, placing it among the
world’s top four producers of acid grade fluorspar and Namibia’s largest bulk
exporter. overseas.. This. impressive. performance. can. largely. be. put. down. to.
unique.breakthroughs. in.metallurgical.processing. technology,.combined.with.
advanced.ore.blending.techniques..Of.this.output,.Okorusu.sold.42,000wmt.to.
the.Solvay.plant.at.Porta.Maghera.in.Italy.and.the.remaining.71,000wmt.to.the.
Solvay.plant.at.Bad.Wimpfen.in.Germany..The.price.paid.by.Solvay.was.some.
7%.higher. than. in.2004..Through. its.continued.success,.Okorusu.has.almost.
completed.the.repayment.of.its.Sysmin.and.Minerals.Development.Fund.loans.
of.N$22.5.million.
The world acid grade fluorspar market has been strengthening each year
since.the.late.1990s,.primarily.owing.to.the.fact.that.China.is.consuming.ever.
greater.amounts.of.domestic.production...The.Chinese.government.continues.
to impose an export licence fee on external sales of Chinese fluorspar, which
has helped stabilize the fluorspar market in the rest of the world. Although
prices have firmed slightly in 2006, further increases are likely to be countered
by.the.debottlenecking.of.several.operations.and.the.possibility.of.two.or.more.large.new.mines.
coming.on.stream...Production.at.Okorusu.is.on.target.to.reach.127,000wmt.ranking.it.as.the.third.
largest fluorspar mine in the world with Solvay Fluor ranking number two in the world for fluorine
production.
Okorusu.holds.three.EPLs.in.Namibia.but.exploration.in.2005/06.was.severely.
curtailed for cashflow purposes. Since the mine has not enjoyed the same
price. rises. as. precious. and. base. metals. or. uranium,. the. strength. of. the. local.
currency has impacted negatively on profitability, despite major improvements
in.production.
Okorusu. lost. a. NOSA. star. in. August. 2005. due. to. procedural. weaknesses..
However, the fifth star was regained in August 2006. Two disabling injuries
were.recorded.for.the.year...Labour.relations.at.the.mine.remained.good.with.no.
disputes.and.no.industrial.action.taking.place.during.the.year..Okorusu.plans.to.award.two.bursaries.
at.the.tertiary.level.and.four.bursaries.to.NIMT.in.2006..The.company.continues.to.be.the.main.
sponsor.of.the.Occupational.Health.and.Educational.Awareness.Programme.(OHEAP),.along.with.
Pact,.a.US.NGO..Okorusu.founded.OHEAP.under.the.auspices.of.the.Chamber.of.Mines.in.1999..
Okorusu. continues. to. sponsor. a. variety. of. community. based. projects. in. Otjiwarongo. and. in.
the. Otjozondjupa. region. and. has. entered. into. a. cooperation. agreement. with. the. Otjiwarongo.
Municipality..This.unique.agreement.allows.Okorusu.to.be.represented.on.the.Town.Council.Social.
• Further increase in production to ��4,886 wet metric tonnes
(wmt) in �005 from �04,�6�wmt in �004, with ���,000 tonnes targeted for �006
• Further technological breakthroughs in mineral separation resulting in
higher mineral recoveries and even purer concentrates
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Upliftment Board which will decide upon focus areas for financial support. Okorusu is also about to
implement.a.Community.Trust.Fund,.to.be.jointly.administered.with.the.local.authorities..Okorusu.
continues.to.sponsor.the.communications.system.for.the.region’s.ambulances.as.well.as.the.radio.
relay.station.for.the.farming.community.
The. mine. operates. an. Environmental. Rehabilitation. Fund,. which. sets. aside. N$0.50. for. every.
tonne.milled..The.Environmental.Management.Plan.is.managed.by.an.independent.consultant.with.
meetings.taking.place.every.quarter.
Okorusu. and. Marburg. farms,. on. which. the. mine. operates,. were. expropriated. by. the. Namibian.
Government. in. December. 2005,. as. part. of. its. policy. to. accelerate. the. process. of. commercial.
land.reform.in.the.country..Okorusu.had.attempted.to.purchase.the.farms.and.to.donate.them.to.
an. employee. trust. owned.and.managed.by. the.workforce..However,. the.Ministry.of.Lands. and.
Resettlement.chose.to.expropriate.the.farms.and.use.them.for.resettlement.
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Shareholders Solvay Fluor (�00%)
Mines in NamibiaOkorusu Fluorspar mine near Otjiwarongo (ML�4/�/�/�/90)
Date of production start �988Latest life of mine estimate �0�4
Output in �005��4,886t (9% moist, 9�.5% pure CaF� filter cake concentrate)
Permanent employees at end �005 �49Contractors at end �005 �0Expatriate employees at end �005 4Turnover in �005 N$94.8 millionWages and salaries in �005 N$��.8 millionFixed investment in �005 N$9.9 millionExploration and prospecting in �005 N$0.��8 millionProfits in �005 NilCorporate tax paid in �005 NilRelated operations in Namibia None
EPLs at end of �006EPL���4 (Okorusu)EPL ���5 (Omburo)EPL �095 (Aes)
Safety ratings at end of �005 4 star NOSAAffirmative Action plan approved Yes
Number of bursaries awarded in �0054 artisans (NIMT)� tertiary education (Wits, Unam)
Managing Director Mr Mark Dawe
Contact details
PO Box ���6, OtjiwarongoTel: +�64 6� �05 404Fax: +�64 6� �05 40�Email: [email protected]
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Ongopolo Mining and Processing mines copper at Otjihase, Matchless,
Kombat, Tsumeb West, and Tschudi mines in Namibia and smelts concentrates
from these mines and also copper concentrates from other mines in Zambia
and the DRC at its smelter in Tsumeb to produce blister copper for export to
world markets.
For more information go to www.weatherlyplc.com
Ongopolo Mining and Processing
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A. turbulent. period. for. Ongopolo. Mining. and. Processing. ended. when.Weatherly. International’s.
offer.to.buy.97%.of.the.company.received.the.blessing.of.Namibia’s.High.Court.on.17.July.2006..
By. that. stage,. however,. Ongopolo. had. already. been. under.Weatherly. management. since.April..
Under. the. company’s. previous. management. and. shareholders,. Ongopolo. had. run. into. a. severe.
cash flow crisis which eventually led it to approach the Namibian Government for a loan guarantee
of N$70 million which was granted in September 2005, but on condition that the company find a
suitable.equity.partner..Ongopolo.management.claimed. the.company.was.being.held.back.by.a.
combination.of.unexpected.water.problems.at.its.new.Asis.Far.West.shaft.and.a.hedging.programme.
which meant it could not benefit from higher copper prices. Limited production from its existing
operational mines, Otjihase, Kombat and Matchless, was insufficient to maintain viable throughput
at.the.smelter.
Weatherly.International,.which.listed.on.the.Alternative.Investment.Market.(AIM).
in.London.on.15.December.2005.raising.£2.345million.gross,.is.a.relatively.new.
company. led. by. two. key. personalities. Rod. Webster. and. Dr. Wolf. Martinick..
At.that.point.Weatherly.had.acquired.one.major.interest.Puku.Minerals.Ltd.in.
Zambia. which. holds. the. licence. to. the. closed. Luanshya. underground. copper.
mine.and.tailings.dam.on.the.Zambian.copper.belt..Weatherly.raised.a.further.
£3.75.million.net.on.28.July.following.the.deal.with.Ongopolo.which.gave.the.
group.a.cash.balance.of.£13.5.million.
Weatherly’s.US$30.million.deal.with.Ongopolo.saw.it.pay.US$9.million.in.cash.to.key.lenders.
to.Ongopolo.and.issue.47.million.shares.to.convert.all.outstanding.debt.into.shares.in.Weatherly.
International..Following.the.deal,.Bank.Windhoek.and.the.Government.Institutions.Pension.Fund,.
which were among the most significant lenders to Ongopolo, ended up owning 10.24% and 4.15%
respectively.in.Weatherly.International,.while.other.lenders.–.the.Minerals.Development.Fund.and.
Standard.Bank.–.decided.they.could.or.would.not.take.up.equity..The.remaining.US$20.million.is.
to.be.injected.into.Ongopolo.to.fund.its.rejuvenation.
Weatherly’s. strategy.over. the.next.18. to.24.months. is. to. raise.production.at.Otjihase. through.a.
combination of backfilling and pillar recovery as well as surface mining and to establish mining
operations.at.Tschudi..Tsumeb.West,.Kombat.and.Matchless.mines.are.under.care.and.maintenance.
for. the. time. being..Additional. concentrates. trucked. from. Zambia. and. the. DRC. will. enable. the.
company.to.exploit.the.refurbished.smelter.capacity.to.the.maximum..Exploration.activities.at.the.
Asis.Far.West.shaft.are.continuing
The last year has been dominated by the precarious financial position of Ongopolo and the takeover
by.Weatherly. International.. Production. targets. were. not. achieved.during. the. year. and,. with. the.
exception of the Asis Far West exploration shaft, no significant exploration was undertaken.
Ongopolo.subscribes.to.NOSA.but.no.audit.was.carried.out. in.2005.so.the.previous.NOSA.star.
• Takeover of Ongopolo by Weatherly International plc completed
• Refurbishment of Smelter Number � completed
• Copper prices above US$5,000 per tonne during the reporting period
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ratings.–.5. stars. for. the.Tsumeb. smelter. and.Kombat.mine,.4. stars. for.Otjihase. and.3. stars. for.
the.Tsumeb.operations.–.were. retained..One. fatality.occurred.during.2005/06.and. the.company.
recorded.seven.reportable. injuries,.14.disabling. injuries.and.53.minor. injuries..Labour. relations.
remained.calm.throughout.this.turbulent.period.
Ongopolo. awarded. only. two. bursaries. during. 2005. but. under. Weatherly. the. company’s. entire.
education,.training.and.skills.development.programme.is.in.the.process.of.being.revamped.
Weatherly.contracted.Synergistics.Environmental.Services.to.carry.out.environmental.audits.of.all.
the.company’s.operations..These.audits.showed.that.all.operations.are.currently.operating.within.
the.limits.imposed.by.current.environmental.policy.and.legal.requirements.
Shareholders Weatherly International plc 9�%Employee trust �%Original shareholders �%
Mining licences in Namibia Mining licenses:�4/�/�/�/��E: Uris �4/�/�/�/�: Berg Aukas�4/�/�/�/�4B: Berg Aukas�4/�/�/�/��: Harasib�4/�/�/�/48: Khusib�4/�/�/4/�/�496: Valencia�4/�/�/�/��A: Tsumeb West�4/�/�/�/��D: Tsumeb�4/�/�/�/��5: Tschudi�4/�/�/�/�5: Bobos Silica�4/�/�/�/��A: Kliplime �4/�/�/�/��C: Gross Otavi�4/�/�/�/��B: Asis �4/�/�/�/9: Asis Ost�4/�/�/�/�6: Asis West�4/�/�/�/�: Friedenhau (Matchless)�4/�/�/�/�0: Otjihase�4/�/�/�/��: Otjihase
Date of production start Otjihase Mine: �000Matchless Mine: �005Kombat Mine: under evaluationTsumeb West Mine: �00�Tschudi Mine: �00�Ongopolo Processing Limited (Smelter): �000
Latest life of mine estimate Otjihase Mine: 5 years Matchless Mine: 8 yearsKombat Mine: under evaluationTsumeb West Mine: 5 years Tschudi Mine: 5 years +
Output in �005/06 Blister Copper: ��,699.��t (captive 8,055.��t)Silver: �4,�0�.5�kgGold: �4�.4�kgArsenic Trioxide: 50.��tLead bearing material: 8��.�0tPyrite: 8,45�.��t
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Permanent employees at end �005/06 90�Contractors at end �005/06 5�Expatriate employees at end �005/06 ��Turnover in �005/06 N$��8.� millionWages and salaries in �005/06 N$90. 8Fixed investment in �005/06 NilExploration and prospecting in �005/06 N$40.4 millionProfits in �005/06 A loss of over N$�00 million is expectedCorporate tax paid in �005/06 NilRelated operations in Namibia Ongopolo Processing EPZEPLs at end of �006 EPL�4/�/�/4/�/���: Tsumeb
EPL�4/�/�/4/�/�6�: OtjihaseEPL�4/�/�/4/�/���6: TsumebEPL�4/�/�/4/�/�906: TsumebEPL�4/�/�/4/�/�066: TsumebEPL�4/�/�/4/�/���6: ElbeEPL�4/�/�/4/�/����: KhorixasEPL�4/�/�/4/�/���4: Otavi
Safety ratings at end of �004 Tsumeb Smelter: 5 StarsKombat Mine: 5 StarsOtjihase Mine: 4 StarsTsumeb Operations: � Stars
Affirmative Action plan approved yesNumber of bursaries awarded in �005 �Managing Director Mr Rod WebsterContact details PO Box 40, Tsumeb
Tel: +�64 6� ��� 4�0�Fax: +�64 6� ��� 4���Email: [email protected]
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Rosh Pinah Zinc CorporationRosh Pinah, majority owned by Kumba Resources (now Exxaro) of South Africa,
is an underground mine producing zinc concentrate for export to Kumba’s
Zincor refinery in South Africa and lead concentrate for export to world
markets. For more information go to www.kumbaresources.com.
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Since.the.mining.licence.of.Rosh.Pinah.reverted.to.the.Government.of.Namibia.which.then.awarded.
it. to.PE.Minerals.at. the.end.of.1995,.Rosh.Pinah.mine.has.been.operated.by.Kumba.Resources.
(formerly.Iscor).under.an.arrangement.that.sees.a.royalty.paid.to.PE.Minerals..This.royalty.has.been.
ploughed.back.into.exploration.at.the.mine.ever.since.PE.Minerals.purchased.a.6.1%.stake.in.the.
company.in.2003..Production.at.the.mine.has.increased.rapidly.in.the.past.few.
years but the company is struggling to delineate sufficient deposits to maintain
this.production..A.concerted.increase.in.exploration.commenced.in.early.2005.
with.the.aim.of.extending.the.life.of.mine.which.at.that.stage.had.declined.to.just.
four.years..The.exploration.drilling.programme.achieved.38,300m.by.the.end.of.
2005.and.11,000m.of.tunnel..This.effort.paid.off.and.the.resource.increased.from.
5.87.to.6.89.million.tonnes..For.2006.42,000m.of.additional.drilling.has.been.planned.with.the.aim.
of.extending.the.life.of.mine.beyond.2015..A.regional.exploration.strategy.is.being.formulated.for.
both.zinc.and.copper.to.support.the.aim.of.extending.the.life.of.mine.
Rosh Pinah has traditionally participated in the NOSA system of safety certification. During the
past.year.Rosh.Pinah.recorded.four.lost.time.injuries.but.went.on.to.obtain.Occupational.Health.
and Safety Advisory Services (OHSAS) 18000 certification as well as ISO 14000 integrated
certification. Dust has presented a particular environmental problem in Rosh Pinah which is being
addressed.by.watering.the.roads.more.frequently.
An. unfortunate. strike. over. wages. in. November. 2006. lost. the. mine. two. weeks. of. production..
Despite.this,.labour.relations.during.the.year.were.conducive.and.mature.which.can.be.attributed.
to.change.management.initiatives.such.as.the.High.Performance.Culture.(HPC).and.Voice.of.the.
People.initiatives.which.are.aimed.at.enhancing.transformational.leadership,.empowering.people,.
stimulating creativity and reducing conflict and the number of grievances.
Rosh.Pinah. runs. an.ongoing. supervisory. skills.development.programme. in. support.of. its.HPC..
Technical.and.formal. training.is.ongoing.and.study.loans.are.made.available.to.employees..The.
company. currently. supports. six. external. bursaries. and. will. support. a. further. six. in. the. coming.
year.
• Further increase in production of zinc concentrate to ��6,���t in �005 from ���,���t in �004
• Further extensive exploration drilling
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Rosh Pinah mine makes a significant contribution to the improvement of living conditions in the
town.of.Rosh.Pinah..The. infamous.Sands.Hotel. is. in. the.process.of.being. relocated..Donations.
were.made.to.Tsumkwe.M’kats.and.Hoeksteen.Primary.School.in.the.form.of.school.uniforms.and.
additional.classrooms.and.have.also.upgraded.the.police.station.and.jail..The.tarring.of.the.road.
from.Aus.has.now.been.completed.making.travel.to.the.mine.much.easier.and.safer..
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Shareholders Exxaro Resources 89.5%Rosh Pinah Mine Holdings 4.4%PE Minerals 6.�%
Mines in Namibia Rosh Pinah zinc and lead mine ML�4/�/�/�/�9 (licence held by PE Minerals)
Date of production start �968Latest life of mine estimate �0��Output in �005 ��6,���t zinc concentrate
�4,690t lead concentrate
Permanent employees at end �005 5��Contractors at end �005 ���Expatriate employees at end �005 ��Turnover in �005 N$4�5 millionWages and salaries in �005 N$8� millionFixed investment in �005 n/aExploration and prospecting in �005 N$�� millionProfits in �005 N$40 millionCorporate tax paid in �005 NilRelated operations in Namibia NoneEPLs at end of �006 EPL��65, �6�6, ��55, ��6�, ��65, ����Safety ratings at end of �004 4 star NOSAAffirmative Action plan approved NoNumber of bursaries awarded in �005 NoneMine Manager Mr Christo AspelingContact details Private Bag, Rosh Pinah
Tel: +�64 6� ��4 ��8Fax: +�64 6� ��4 ���Email: [email protected]
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Rössing UraniumRössing Uranium, majority owned by Rio Tinto plc, is Namibia’s main uranium
mine and is the world’s largest open pit uranium mine. Rössing produces
uranium oxide for sale to power utilities in countries which are signatories of
the Nuclear Non-Proliferation Treaty. For more information go to
www.Rössing.com, Rössing’s 2005 Report to Stakeholders,
or www.riotinto.com.
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For. the. past. few. years. Rössing. mine. has. been.
operating.very.much.in.survival.mode..However,.the.
change.in.the.international.climate.for.nuclear.power.
and. the. steady. and. sustained. increase. in. uranium.
oxide. prices. that. world. markets. have. experienced.
during.the.past.few.years.led.to.the.green.light.being.
given.to.a.US$112.million.mine.expansion.project.at.
the.end.of.2005..With.this.approval.the.mine.moves.
from. survival. to. growth. and. production. which.
will. see. new. mining. equipment. and. a. refurbished.
processing.plant.returning.the.mine.to.full.production.
capacity.of.4,000.tonnes.a.year.within.the.next.two.
years.adding.150.new.jobs..Already.in.2005.Rössing.
mine. produced. 3,711. tonnes. of. uranium. oxide.
–.more.than.at.any.time.since.1990.–.despite.a.two.
week.outage.as.a.result.of.problems.in.the.processing.
plant.. However,. mining. is. currently. constrained.
by. high. stripping. rates. so. production. during. 2006.
will.be.similar.to.2005.with.the.rise.to.4,000.tonnes.
expected.to.take.place.in.2007.
Major.exploration.work.has.been.carried.out.in.and.around.the.current.open.pit.
during.the.past.three.years.as.part.of.the.life.of.mine.expansion.project..Rössing.
is.budgeting.N$10.million.a.year. for. the.next. two.years. to.a.detailed.drilling.
programme.around. the.mining. licence. area..Rio.Tinto.Mining.&.Exploration.
holds.a.number.of.EPLs.in.the.Erongo.and.Kunene.regions.
The.year.2005.ended.with.a.total.of.eight.lost.time.injuries.including.one.fatality.
in March, five medical treatment cases and 12 first aid cases. Although the total
of.25.lost.time.injuries.was.the.lowest.in.the.mine’s.30.years.of.production,.the.
severity.rate. increased.due.to. the.seriousness.of. the.injuries..Rössing.remains.
committed.to.achieving.zero.injuries.
Labour. relations. at. the. mine. were. good. although. the. salary. negotiations. were. interrupted. by. a.
peaceful.demonstration.and.the.handing.over.of.a.petition.to.management..Several.labour.disputes.
between.the.company.and.current.and.former.employees.are.ongoing.
Rössing. mine. created. a. new. Department. of. Improvement. and.Training. in. 2005. which. aims. to.
increase. the.capacity.and.potential.of.employees..A.number.of.new.programmes.were. launched.
including. the. Front. Line. Leadership. Programme,. bursaries,. job. attachments,. correspondence.
courses.and.scholarships..By.the.end.of.2005.187.employees.and.students.were.participating.in.
• Approval of US$��� million life of mine expansion project
extending the life of mine from �009 to at least �0�6
• Uranium oxide prices average
US$�6.�5/lb in �005
• Uranium oxide prices peaked at US$6�.50/lb in November �006
• Rössing celebrated �0 years of production in �006
• Rössing achieved its highest production since �990
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these.programmes..A.number.of.employees.were.seconded.to.Rio.Tinto.locations.overseas.to.gain.
experience.of.other.company.operations.
The. Rössing. Foundation. undertook. a. variety. of. programmes. at.Arandis. aimed. at. building. the.
capacity.of.the.town.council,. local.organisations.and.individual.residents.including.programmes.
dealing. with. education. and. training,. agriculture,.
tourism. and. business. development. as. well. as. local.
government. and. infrastructure.. A. comprehensive.
socio-economic. baseline. study. was. carried. out. in.
2005.which.will.be.used.as.the.basis.for.planning.and.
further.interventions.
For. several. years. Rössing. has. implemented. a.
thorough. Environmental. Management. System.
(EMS). ISO14001 certification was granted already in
February.2001..Since.then.the.mine’s.EMS.has.been.
regularly. audited. by. an. independent. organisation,.
Bureau. Veritas. Quality. International.. Three. audits.
were.carried.out. in.2005.and,.although.a.number.of.
findings were reported, certification was maintained. The mine is currently running a number of
monitoring.programmes.covering.energy.usage,.greenhouse.gas.emissions,.and.radiation.and.dust.
exposure.
A. stakeholder. forum.was. established. in. early.2005.and. several.meetings.have.been.held. since..
Rössing,.which.consumed.over.three.million.cubic.metres.of.water.in.2005,.also.adopted.a.water.
strategy. and. developed. a. water. management. plan. to. achieve. a. number. of. objectives. including.
reduction.in.water.consumption..The.life.of.mine.extension.plan.includes.further.measures.designed.
to.reduce.fresh.water.consumption..The.mine.continues.to.run.a.project.on.groundwater.resources.
and.water.quality.with.members.of.the.Swakop.River.community.
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Shareholders Rio Tinto plc 69%Government of Iran �5%IDC of South Africa �0%Government of Namibia �%Local individual shareholders �%
Mines in Namibia Rössing mine (ML�4/�/�/�/�8)Date of production start �9�6Latest life of mine estimate �0�6 or laterOutput in �005 �,��� tonnesPermanent employees at end �005 860Contractors at end �005 5�0Expatriate employees at end �005 ��Turnover in �005 N$9�6 millionWages and salaries in �005 N$�9� millionFixed investment in �005 N$�� millionExploration and prospecting in �005 NilProfits in �005 N$�4 millionCorporate tax paid in �005 NilRelated operations in Namibia NoneEPLs at end of �006 EPL��5�
(Rio Tinto Mining & Exploration) EPL�555, �556, �55�,�558, �646, �64�, �648, �649, �650, �65�, �65�, �65�, �654,�655, �656
Safety ratings at end of �004 n/aAffirmative Action plan approved YesNumber of bursaries awarded in �005 NIMT 58
Higher education �9Managing Director Mr Mike LeechContact details Mine site
PO Box 5005 SwakopmundTel: 064 64 5�0 9���Fax: 064 64 5�0 ��5�Swakopmund OfficePO Box 5005 SwakopmundTel: 064 64 5�0 �00Fax: 064 64 5�0 ��5Windhoek OfficePrivate Bag ���9� WindhoekTel: 06� 6� �80 9���Fax: 064 64 ��� 6��Email: [email protected]
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Sakawe Mining Corporation
Sakawe Mining Corporation (Samicor), majority owned by the Leviev Group,
mines alluvial diamonds off the coast of southern Namibia.
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The.goal.of.Sakawe.Mining.Corporation.(Samicor).is.to.become.a.world.class.producer.of.gem-
quality.marine.diamonds..The.company’s.strong.position.is.based.on.its.large,.well-located.marine.
diamond.concessions.situated.along.the.coast.of.Namibia..Samicor.has.858km2.of.mining.licences.
comprising.ML36.the.areas.surrounding.the.islands.and.offshore.to.a.depth.of.between.90m.and.
100m.as.well.as.ML51.in.Lüderitz.Bay.and.ML103A.north.west.of.Hottentots.Bay..The.company.has.
an.additional.14,384km2.of.Exclusive.Prospecting.Licences.(EPLs)..Samicor.is.currently.focussed.
on.delineating.and.mining.these.diamond.reserves.which.requires.a.combination.of.detailed.and.
accurate geophysics, representative sampling and the systematic and efficient mining of the sea
floor. These large licence holdings make Samicor the second largest marine diamond exploration
and.mining.company.in.Namibia.
The.LLD.diamond. cutting. factory,.which. is. also.part. of. the.Leviev.Group,. is. situated. together.
with the Samicor head office in Ruhr Street in the Northern Industrial Area of Windhoek. LLD
also.has. a.warehouse.on. the.quay.at.Lüderitz. to.house. spare.parts. for. all. the.vessels. and. from.
where.all.technical.and.logistical.functions.to.support.the.marine.operation.are.carried.out..A.small.
logistical office located in Cape Town purchases specialised equipment that is not locally available
in.Namibia..Samicor.and.LLD.have.a.policy.of.preferentially.employing.and.training.Namibian.
citizens..Presently.72%.of.Samicor’s.employees.are.Namibians..
The.company.has.a.high.standard.of.environmental,.health.and.safety.practices.in.place.and.has.
had.no.fatalities.aboard.their.vessels.and.even.serious.injuries.have.been.minimal.since.operations.
commenced in 2003. Samicor has fulfilled all its data handover requirements as stipulated in its
licence.obligations.with.the.Ministry.of.Mines.and.Energy.
Samicor.has.four.vessels:.the.mv.Sakawe.Surveyor,.the.mv.Sakawe.Explorer,.the.mv.Sakawe.Miner.
and.the.mv.Kovambo..The.Sakawe.Surveyor.is.a.38m.vessel.which.alternates.
monthly.between.supply.and.survey..It.has.a.fully.equipped.geophysical.spread.
comprising. C-Nav. Navigation,. an. Edgetech. sidescan. sonar,. GeoResources.
Sparker. and. Kongsberg. high. resolution. PS40. TOPAS. seismic. system,. SEA.
(AP).Ltd.swath.bathymetry.system.and.IXSEA.Octans.MRU..The.mv.Sakawe.
Explorer.has.a.moonpool.for.deploying.the.Wirth.Tool.(using.tunnel.boring.type.
technology).with.a.footprint.of.3m2.and.the.ability.to.produce.representative.results.in.sediments.of.
up.to.11.5m.thick..The.Explorer.has.a.10t/hr.DMS.plant.aboard.for.the.processing.of.the.material..
The.Sakawe.Miner.mines.by.means.of.2.x.20.inch.airlift.heads.and.has.a.50t/hr.DMS.plant.on.board...
The.vessel.can.mine.on.average.300.to.400.sqm/day.to.a.maximum.of.5m.sediment.thickness.and.
mines about 330 days/year. Samicor’s flagship is the mv Kovambo which has a sophisticated
NamSSol.seabed.crawler.which.can.mine.600.to.1200.sqm/day.in.sediments.of.between.1m.and.6m.
thick..The.mv.Kovambo.also.has.a.50t/hr.DMS.plant.aboard..
Samicor. is. currently. the. leader. in. exploration. on. the. Inner. Shelf. off. Namibia’s. west. coast.. Its.
exploration.strategy.combines.high.quality.geophysical.interpretations,.a.well.formulated.and.tested.
• Problems with stone sizes for LLD
• Awaiting decision from Government on Namibian diamonds
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depositional.model.for.placer.deposits.in.this.Inner.Shelf.environment.with.its.in-house.knowledge.
of.well.mineralized.sea-level. stillstands.and.suitable. target.morphology..This.approach. together.
with.a.motivated.exploration.team.and.a.representative.sampling.tool.has.lead.to.the.discovery.of.
a.number.of.deposits.that.were.sampled.and.passed.over.by.previous.licence.holders..While.this.
throws.the.usefulness.of.the.inherited.sampling.and.geological.databases.into.doubt,.it.opens.up.
more.areas.within.the.mining.licences.for.future.exploration.and.delineation.of.reserves.that.were.
considered.to.have.been.sampled.but.either.not.mineralised.or.poorly.mineralised.
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Shareholders Samicor Bv (�6%)Longlife Mining (�0%)Government of Namibia (8%)National Youth Service (�%)Employees (4%)
Licence areas in Namibia ML�6, ML5�, ML�0�ADate of production start �005Latest life of mine estimate n/aOutput in �005 ��0,�00 caratsPermanent employees at end �005 �8�Contractors at end �005 �48Expatriate employees at end �005 ��9Turnover in �005 N$���.� millionWages and salaries in �005 N$�6.� millionFixed investment in �005 N$�60.� millionExploration and prospecting in �005 N$6.6 millionLoss in �005 N$9.� millionCorporate tax paid in �005 N$���.9 millionRelated operations in Namibia LLD polishing and cutting factory in WindhoekEPLs at end of �006 EPL �0��A-I, EPL�469-�4�4, EPL��9�,
EPL�4��, EPL�4�9
Safety ratings at end of �005 n/aAffirmative Action plan approved Not yet dueNumber of bursaries awarded in �005 NoneCEO Mr Eli NefussyContact details PO Box �498, Windhoek
Tel: +�64 6� ��5 4��Fax: +�64 6� �49 �5�Email: [email protected]
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Skorpion MiningSkorpion open pit mine and Namzinc EPZ refinery produce Special High
Grade zinc for export to world markets. For more information go to
www.angloamericanplc.co.uk.
Skorpion.zinc.mine.is.a.pioneering.operation.which.mines.a.zinc.oxide.deposit.and.uses.a.new.and.
sophisticated.Zinc.Solvent.Extraction.Electrowinning.(SXEW).process.to.produce.zinc.of.99.995%.
purity..After.a.certain.number.of.teething.problems,.production.at.Skorpion.mine.and.its.associated.
Namzinc refinery reached design plate levels in May 2005 and were sustained thereafter. Two
impurity excursions into the electrowinning section of the refinery caused production interuptions
costing.the.company.20,000.tonnes.of.SHG.Zinc..Scorpion.has.focused.intensively.on.research.into.
understanding the impurity excursions and has made significant headway towards regaining and
exceeding.its.design.plate.production.
The.world.zinc.concentrate.market.is.extremely.tight.and.the.metal.market.is.expected.to.become.more.
so.during.2006..The.international.price.of.zinc.has.been.driven.to.record.levels.of.over.US$3,500/t.
by significant speculation and investment fund money moving into commodities in general and
zinc. in.particular..Among. the.London.Metal.Exchange.metals,.zinc.has.been. the.preferred.pick.
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of the analysts. The significant differences in
analysts.price.forecasts.for.the.year.is.indicative.
of. the. high. degree. of. uncertainty. surrounding.
the. degree. to. which. fund. money. will. continue.
to. support. prices. at. levels. much. higher. than.
those justified by market fundamentals alone. A
price.correction.at.some.stage.in.the.near.future.
is. therefore. to. be. expected.. Skorpion. plans. to.
produce.at.design.plate.levels.of.150,000t.for.the.
coming.years.
The.open.pit.at.Skorpion.has.been.developed.to.
50m. from. surface. (670m. above. sea. level). and.
a. temporary.access. ramp.has.been.built.on. the.
western.side.of.the.pit.to.reduce.hauling.distances..The.northern.boundary.has.been.pushed.back.to.
expose.more.lower.and.medium.grade.ore.giving.a.current.surface.dimension.of.720m.by.850m..
The.southern.ramp.has.been.linked.with.the.crusher.access.ramp.to.improve.hauling.of.ore.to.the.
stockpiles..The.current.life.of.mine.pit.shell.development.envisages.an.open.pit.which.is.240m.deep.
and.1200m.by.900m.wide.with.an.ultimate.mining.width.of.30m.at.pit.bottom..A.global.haul.road.
design.of.30m.width.and.10%.gradient.was.incorporated.into.the.pit.shell.
Skorpion.achieved.341.days.without.a.lost.time.injury.before.two.were.recorded.during.September.
and. October. 2005.. OSHAS18001. GAP. analysis.was. conducted. in. December.
2005 and certification was achieved in July 2006.
Skorpion’s.sister.company.Ambase.Exploration.carries.out.Anglo.American’s.
exploration.programme.in.Namibia..It.currently.holds.nine.EPLs.in.the.Kunene,.
Karas,.Kavango,.Oshikoto.and.Otjozondjupa.regions.in.Namibia.
Skorpion’s. labour. relations. climate.
has.been.stable.and.constructive.and.
no major labour conflicts have taken
place.. One. peaceful. demonstration. on. the. subject. of.
overtime.pay.occurred..The.company.and.union.are.in.
dispute.over.this.issue.which.has.not.as.yet.been.referred.
to.a.third.party..The.company.and.the.union.concluded.
a. substantive. two-year. wage. agreement. during. the.
period.under.review..Some.shortcomings.in.Skorpion’s.
Affirmative Action report, which the company is obliged
to. submit. to. the. Employment. Equity. Commissioner,.
were identified but these are currently being addressed.
• Design plate production levels achieved since May �005
• Thee week interruption to production due to impurity excursion into electrowinning
plant
• Strengthening of world zinc prices to above US$�,500/tonne partly offset by strengthening of the local currency
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Four.bursary.holders.graduated.at.the.end.of.2005,.two.in.metallurgy/chemical.engineering,.one.
in. electrical. engineering. and. one. in. mining. engineering. while. one. bursary. was. terminated.. Six.
new. bursaries. were. awarded. for. 2006. including. three. in. metallurgy/chemical. engineering,. two.
in. geology,. and. one. in. information. technology..A. further. 15. employees. were. assisted. through.
Skorpion’s.part-time.study.assistance.scheme.and.two.employees.study.as.artisans,.one.of.which.
passed.the.trade.test..As.part.of.its.effort.to.promote.science.and.technology.skills.in.the.country,.
Skorpion.sponsored.Namibia’s.annual.science.awards.in.September.2005
Skorpion’s. ISO14001.surveillance.audit.was.concluded. in.February.2006.and.accreditation.was.
retained..Mine.rehabilitation.planning.is.taking.place.to.minimise.the.environmental.impact.of.the.
mine.
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Shareholders Anglo Base Namibia (�00%)Mines in Namibia Skorpion zinc mine (ML�08 and ML���)Date of production start Skorpion Mining Company �00�
Namzinc �004
Latest life of mine estimate �0�6Output in �005 ���,8��tPermanent employees at end �005 6�9Contractors at end �005 �60Expatriate employees at end �005 68Turnover in �005 N$�,��� millionWages and salaries in �005 N$�04 millionFixed investment in �005 N$�0� millionExploration and prospecting in �005 US$�5�,000Profits in �005 N$5� millionCorporate tax paid in �005 NilRelated operations in Namibia NoneEPLs at end of �006 Ambase Exploration
EPL�5�6, EPL�4�8, EPL�489, �490, �49�, �49�, �49�, �494, �495,
Safety ratings at end of �004 NoneAffirmative Action plan approved NoNumber of bursaries awarded in �005 4 higher educationManaging Director Gerald BotingContact details Private Bag �00�, Rosh Pinah
Tel: +�64 6� ��� ��80Fax: +�64 6� ��� �5�6 Email: [email protected]
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As.a.contract.miner,.Trans.Hex.does.not.undertake.prospecting.or.exploration.in.Namibian.waters..
After.terminating.its.contract.mining.operations.for.Samicor.in.2004,.Trans.Hex.entered.into.an.
agreement. with. EPIA. Minerals. to. mine. Namdeb’s. mid-shelf. concession. starting. at. the. end. of.
February.2005..However,.the.mining.availability.of.both.vessels.was.negatively.affected.by.adverse.
weather.and.sea.conditions.throughout.the.period..Trans.Hex.production.of.48,500.carats.has.been.
incorporated.into.De.Beers.Marine.Namibia’s.output..EPIA’s.contract.with.Namdeb,.which.was.
signed.in.February.2005.runs.out.on.10.April.2007..Trans.Hex.will.commit.both.its.vessels.–.the.
966.tonne.mv.Ivan.Prinsep.and.the.1,616.tonne.mv.Namakwa.–.to.EPIA.Minerals.for.the.duration.of.
the.contract.and.discussions.over.the.renewal.of.the.contract.between.EPIA.Minerals.and.Namdeb.
has.already.started..The.mv.Ivan.Prinsep.undertook.sampling.in.the.Namdeb.concession.areas.for.
25%.of.its.available.time,.as.per.contractual.obligations,.and.achieved.encouraging.results..A.total.
Trans Hex Marine Namibia
Trans Hex Marine Namibia is part of the Trans Hex Group, the only diamond
mining company listed on the JSE. Trans Hex has no concessions of its own in
Namibia but has undertaken contract mining on behalf of a number of other
companies including in the last year EPIA Minerals, Namdeb’s BEE mining
partner. For more information go to www.transhex.co.za
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Shareholders Tegniese Mynbou Bpk (Holding Company) – ��.6�%
Mines in Namibia NoneDate of production start Current contract, as operator for EPIA Minerals with
Namdeb, started �8 February �005
Latest life of mine estimate Current contract between EPIA Minerals and Namdeb expires �0 April �00�
Output in �005/06 48,500 caratsPermanent employees at end �005/06 �0Contractors at end �005/06 �8Expatriate employees at end �005/06 �6Turnover in �005/06 N$�4. 9Wages and salaries in �005/06 N$�8.5Fixed investment in �005/06 N$0.�Exploration and prospecting in �005/06 NilLoss in �005/06 N$�5.�Corporate tax paid in �005/06 NilRelated operations in Namibia NoneEPLs at end of �006 NoneSafety ratings at end of �005 As a contractor working for De Beers, we are
incorporated in their current reporting structure. First position in the CMN inter-mine competition for smaller mines.
Affirmative Action plan approved yesNumber of bursaries awarded in �005 NoneMD Trans Hex GroupOperations Manager
Mr Llewellyn Delport Mr Carel Neethling
Contact details Waterfront Shop � Block H, PO Box �04�, Lüderitz Tel: +�64 6� �0� �55Fax: +�64 6� �0� �55Email: [email protected]
of.53.days.exploration,.prospecting.and.resource.development.work.was.carried.during.the.period.
with.positive.results.
Both. Trans. Hex. vessels. passed. the. ISM. (International. Safety. Management)..
annual audit for all vessels above 300 tons, and were issued with certificates.
No. lost-time. injuries. occurred. on. either. vessel. during. the. reporting. period..
Relations.with. the.MUN.were.very.positive..Wage.negotiations.were. carried.
out very professionally and efficiently. No disputes and no strikes took place
during.2005/06.
Environmental.management.is.strictly.overseen.by.the.concession.holder,.Namdeb,.and.its.partner.
De.Beers.Marine.Namibia..Trans.Hex.collects.relevant.data.and.reports.on.a.monthly.basis.
• Mined 48,500 carats in �005/06 on behalf of EPIA Minerals compared to 69,900 carats in �004/05
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Salt and Chemicals
Salt and Chemicals produces coarse and refined salt through solar
evaporation for export to South Africa and other markets in west Africa. For
more information go to www.ncp.co.za
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Weather. related.factors.caused.production. in.2005. to. fall.due. to. lower. than.normal.evaporation.
rates.in.the.Walvis.Bay.pan..During.this.time.the.company.experienced.no.lost.time.injuries..Labour.
relations.were.good.and.no.industrial.action.took.place..The.annual.agreement.on.substantive.labour.
and.wage.issues.became.effective.in.April.2006..The.company.has.one.apprentice.at.NIMT.and.has.
arranged.skills.upgrading.training.in.a.variety.of.disciplines..The.company.continues.to.support.
local.schools.and.assists.the.Sunshine.Centre.for.handicapped.children.by.providing.transport.for.
all.the.children.to.and.from.the.centre.each.day.
Shareholders Walvis Bay Salt Holdings (�00%)Mines in Namibia Walvis Bay salt pan ML��Date of production start �964Latest life of mine estimate n/aOutput in �005 5��,000tPermanent employees at end �005 ��0Contractors at end �005 NoneExpatriate employees at end �005 NoneTurnover in �005 N$�0 millionWages and salaries in �005 N$6 millionFixed investment in �005 N$� millionExploration and prospecting in �005 n/aRelated operations in Namibia NoneSafety ratings at end of �004 n/aAffirmative Action plan approved YesNumber of bursaries awarded in �005 �0Managing Director Royden StantonContact details PO Box �4�� Walvis Bay
Tel: +�64 64 ��� �50Fax: +�64 64 �05 0�6Email: [email protected]
• Fall in output due to lower evaporation rates
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With.the.global.uranium.price.having.continued.to.power.ahead.during.2006,. to.a. level.of.over.US$56/pound.of.uranium.oxide.(U3O8).in.October.2006,.Namibia.has.become.a.favoured.destination.for uranium exploration activities by a significant number of mainly foreign, junior exploration companies. in. the. past. year. to. 18. months..They. have. been. attracted. by. investor. perceptions. of.Namibia as a politically-stable country with a sound fiscal system and good record of economic growth.and.the.large.number.of.known,.previously-explored.deposits.and.other.highly-prospective.occurrences.of.alaskite-.and.calcrete-type.uranium.mineralisation.at.relatively.shallow.depth..As.considerable.data.was.obtained.by.past. exploration.during. the. last. uranium.boom.of. the.1970s.and.early.1980s,.most.are.advanced-stage.rather.than.early-stage.or.“grass.roots”.projects.which.favours fund-raising by junior exploration firms, predominantly trading on London’s Alternative Investment.Market.(AIM),.the.Australian.Stock.Exchange.(ASX).and.the.Toronto.Stock.Exchange.(TSX)..
Some.15.prospecting.licences.for.nuclear.fuels.exploration. have. been. issued. by. the. Ministry.of. Mines. and. Energy. (MME). to. date,. with. a.further.65.or.so.applications.awaiting.approval.as. of. October. 2006.. Most. licence. holders. are.locally-registered firms, many of which have already. formed. partnerships. with. foreign.juniors. to. conduct. exploration. work.. An.October.2006.policy.decision.by.MME.to.limit.all. new. exclusive. exploration. licences. (EPLs).to. one. year. initially,. which. is. understood. to.have.been.made. to.avert.potential. speculation.in. Namibian. exploration. licences,. has. been.accepted.as.a.reasonable.move.by.current.and.potential. licence.holders.. It. is.understood. that.the.MME.has.advised.companies.that.provided.the exploration expenditure specified in EPL applications are met within the first year, a licence. would. be. rolled-over. for. a. further.period. in. line. with. the. standard. three-year.initial.validity.period.for.EPLs..
With.encouraging.results.being.reported.from.several.exploration.projects.located.in.the.large.semi-desert.area.of.west-central.Namibia.lying.inland.from.Walvis.Bay.and.Swakopmund,.the.likelihood.is.that.at.least.one,.and.possibly.two.or.three.more.uranium.mines.will.be.opened.in.the.next.two.to.four.years..Namibia.is.already.a.major.force.in.the.global.uranium.market.due.to.the.Rössing.mine,.which. recorded.30.years. of. continuous.production. in.2005. and.where.mining.operations.will.continue.to.at.least.2016.under.the.US$112.million.life-of-mine.extension.project.approved.in.December.2005.by.Rio.Tinto.group,.the.major.shareholder.(68.6%.equity.interest).in.Rössing.Uranium.Ltd..Production.is.being.returned.to.the.mine’s.4,000.metric.tons.U3O8.per.year.design.capacity.by.2008,.and.by. the.end.of.2006,.Namibia’s.second.uranium.mine.at.Langer.Heinrich.was.on.track.to.meet.its.scheduled.production.start-up.by.December.2006,.according.to.Australia’s.Paladin.Resources.which.is.developing.the.US$92.million.project..
NAMIBIA’S URANIUM EXPLORATION BOOMBy Roger Murray*
Feature
Uranium oxide spot price (US$/lb)
65
60
55
50
45
40
35
30
25
20
15
10
5
087 88 89 90 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 05 06
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Namibia’smainuraniumdeposits
Mine/project Ownership Stage Resource*
Rössing Rio Tinto (LSE) 68.6% Operating Alaskite: mine to c�0�6 ��8,000 t 4,000 t/yr U�08
LangerHeinrich Paladin Resources Development; Calcrete: (ASX)�00% production start ��,500 t + Dec 06 at �.6m �5,�00 t (inferred) lb/�,�80 t/yr
Trekkopje Uramin Inc (AIM) Feasibility; Calcrete: �00% production ��,500 t (inferred end-�008 6�,�00 t)
Valencia Forsys Metals Corp. Pre-feasibility; Alaskite: (TSX) 90%, production by �,0�0 t (inferred) Ongopolo Mining & end-�009 Processing �0% via Westport Resources Namibia
Husab Kalahari Minerals Pre-feasibility; Alaskite: no (AIM) 49%/Extract production resource as yet Minerals (ASX) 5�% target end-�008 (farm-in) if ore toll-treated at Rössing plant
Tubas Deep Yellow (ASX) Exporation start Calcrete: �00% via Reptile by early �00� 5,800 t (historic Investments Four estimate)
The Perth-based, ASX-listed company expects the first contracted shipment to take place late in the first quarter of 2007, and ramp-up to the initial annualised design output of 2.6 million pounds U3O8.(1,180.metric.tons).to.be.achieved.as.planned.during.the.third.quarter.of.2007..Based.on.a.measured.and.indicated.resource.of.32.million.metric.tons.at.a.0.07%.grade,.containing.20,200.metric.tons.U3O8.at.a.250.ppm.cut-off,.a.15-year.mining.life.is.currently.planned..
In 2005 Namibia was already the world’s fifth largest uranium producer – just ahead of Niger – after Canada,.Australia,.Kazakhstan.and.Russia..By.2007,.combined.output.of.some.5,000.metric.tons.U3O8.from.Rössing.and.Langer.Heinrich,.could.propel.it.into.fourth.place,.and.the.opening.of.further.mines. in. comining. years. could. see. Namibia. challenging. Kazakhstan. as. the. world. third-biggest.producer.of.yellow.cake..About.15.exploration.licences.have.already.been.issued,.mainly.in.the.past.18.months,.with.a.further.65.licence.applications.currently.awaiting.government.approval...
Progress of major exploration projects
Since. listing. on.AIM. in.April. 2006,. UraMin. Inc. has. rapidly. progressed. its. Trekkopje. project,.located.65.km.northeast.of.Swakopmund.and.20.km.north.of.Rössing,.which.is.on.track.to.become.Namibia’s.third.uranium.mine.by.the.end.of.2008..Trekkopje.is.the.most.advanced.of.UraMin’s.
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* Metric tonnes of uranium oxide (U�O8)
predominantly.Africa-located.uranium.projects,.which.include.the.Central.African.Republic.(CAR).Bakouma.deposits.–.where.it.began.drilling.in.August.2006.–.eight.prospecting.licences.for.the.Ryst.Kuil.mineralized.channel.near.Beaufort.West. in.South.Africa’s.Karoo.basin,.and.Chad..With.an.end-October.2006.market.capitalisation.of.£137.million.(US$263.million),.UraMin.is.the.biggest-capitalised junior firm engaged in a Namibian uranium project.
The. 374. sq. km. Trekkopje. project. area. contains. two. low. grade. calcrete-type. deposits. in. close.proximity. –.Trekkopje. and. Klein.Trekkopje/Arandis. –. covering. some. 47. sq. km. along. an. east-west.trending.paleochannel.from.surface.to.over.30.metres.depth..In.September.2006,.Trekkopje.moved to the pre-development stage with Uramin’s appointment of a US firm, SRK Consulting, to carry out a US$7 million definitive feasibility study (DFS) for completion in the second half of 2007, when it expects to apply for a mining grant. Following the completion of a confirmatory drilling. programme. the. previous. month,. UraMin. also. announced. a. new. Trekkopje. resource.estimate.–.complying.with.Canada’s.National.Instrument.NI.43-101.on.mineral.reserves.–.of.158.million.pounds.(71,670.metric.tons).U3O8.grading.127.ppm.(0.013%),.at.an.80.ppm.average.cut-off.grade,.up.from.the.original.estimate.of.121.million.pounds.(55,000.metric.tons)..Just.under.90%.is.currently.an.inferred.resource,.with.a.measured.and.indicated.resource.of.14.4.million.pounds.(6,532.metric.tons).U3O8.at.a.higher.average.grade.of.160.ppm..A.further.resource.upgrade.is.likely.following.the.scheduled.completion.of.a.further.drilling.programme.by.the.end.of.2006..Based.on.an.early.2006.conceptual.study.by.South.Africa’s.Turgis.Consulting,.a.20-year.mining.operation.is.planned.at.an.annual.output.of.3.1.million.pounds.(1,400.metric.tons).U3O8,.for.a.projected.44%.internal.rate.of.return.(IRR)....
In early November 2006, UraMin was notified by the MME that it would be issued with an EPL for Trekkopje,.covering.the.same.area.as.the.company’s.existing.Mineral.Deposit.Retention.Licence.(MDRL),.which.it.had.applied.for.in.February.that.year..The.EPL.was.to.be.issued.for.one.year.initially,.in.line.with.the.MME’s.new.policy..In.a.comment.of.November.7,.2006,.UraMin’s.chief.executive officer, Ian Stalker, stated:
“The.award.of.the.license.is.excellent.news,.and.together.with.the.SRK.resource.statement,.provides.fresh.enthusiasm.in.the.awaited.outcome.of.the.DFS,.which.is.the.launch.pad.for.our.development.plans. The increase in resource pounds at a higher grade combined with the identification of higher grade zones has resulted in a significantly more robust project, generating greater confidence in delivery.of.a.third.producing.uranium.mine.in.Namibia.over.the.next.30.months.or.so..The.outline.project.schedule.continues.to.suggest.that.production.at.an.annualised.rate.of.3.million.lbs.of.U3O8.pa.will.be.achieved.by.the.last.quarter.of.2008.”
Toronto-based. Forsys. Metals. Corporation. (Forsys).has. made. encouraging. progress. in. evaluating. the.alaskite-hosted.Valencia.deposit..This.is.located.35.km.east.of.Rössing.within. the.5.sq.km.Mineral.Deposit.Retention.Licence.(MDRL).registered.in.the.name.of.Tsumeb.Exploration.Company.Ltd.(TECO),.in.which.Forsys.acquired.a.90%.interest.through.its.May.2005.purchase.of.Namibian.Minerals.Ltd.(NML),.a.private.firm incorporated in the British Virgin Islands. Forsys operates.locally.through.its.wholly-owned.subsidiary.Westport.Resources.Namibia..
In.November.2006,.Forsys.appointed.the.Johannesburg.office of Australia’s Snowden Mining Industry Consultants. to. carry. out. a. pre-feasibility. study. on.Valencia, for an expected completion within the first quarter.of.2007..The.study.will.determine.the.project’s.viability,. and. recommend. the. mining. method,. pit.
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configuration and mineral processing route, along with a financial analysis. Valencia’s main uranium.mineralisation.zone. is. some.750.metres.long. by. 520. metres. wide. and. 200. metres. thick,.from.surface.to.a.depth.of.360.metres..An.inferred.resource.of.32.million.metric.tons.grading.0.22.kg/t.(0.02%.U3O8).containing.just.over.7,000.metric.tons. of. uranium. at. was. estimated. in. an. October.2005. technical. report. by. Snowdon.. The. pre-feasibility. study. will. also. determine. the. portion.of. the. previously. inferred. resource. that. may. be.classified as a mineral reserve.
A.resource.drilling.programme.completed.in.August.2006. intersected. higher-grade. mineralisation. in.both.the.main.and.east.zones..The.best.intersections.reported.to.date.included:.Hole.VA26-096.(deposit.centre),.40.metres.grading.0.41.kg/t.U3O8.at.220-261. metres. depth;. VA26-113. (main. zone),. 62.metres. grading. 0.34. kg/t. at. 26-88. metres. depth.(including.4.metres.grading.1.02.kg/t);.VA26-125.(east.zone),.25.metres.grading.0.37.kg/t.at.178-202.metres.depth..In.addition,.reverse.circulation.(RC).drilling.to.obtain.a.“measured.block”.to.assist.with.reclassifying.part.of.the.inferred.resource.has.been.completed.
Forsys,.which.had.been.listed.on.the.TSX.Venture.Exchange.(XE).since.2004,.received.conditional.listing.approval.from.the.TSX.(main.board).in.September.2006..In.the.same.month,.Forsys.signed.a.letter.of.intent.with.Ancash.Investments.(Pty).Ltd.(Ancash),.a.black.economic.empowerment.(BEE).firm headed by Zacky Nefungo Nujoma, a son of Namibia’s founding president, Dr Sam Nujoma. This.is.intended.to.establish.a.strategic.partnership.for.the.acquisition.of.new.uranium.projects.and.to.expand.Forsys’.exploration.presence.around.Valencia,.with.equity.and.project.participation.by.Ancash.
Despite.almost.no.previous.exploration.for.nuclear.fuels.in.the.area,.AIM-listed.Kalahari.Minerals.and. its. joint. venture.partner,.ASX-listed.Extract.Resources,. have. established.good.prospects. of.locating.commercially.exploitable.uranium.mineralisation.in.the.555.sq.km.Husab.EPL,.located.midway.between.Rössing.and.Langer.Heinrich..Encouraging.results.have.been.reported.from.an.8,000.metre.pre-feasibility.drilling.programme.started.in.March.2006,.the.same.month.in.which.Kalahari. raised. £6. million. (US$11. million). through. listing. on.AIM.. Its. exclusively. Namibian.interests.also.include.several.copper.prospects.in.the.Kalahari.Copper.belt.(KCB).east.of.Windhoek.and. one. gold. prospect.. Perth-based. Extract. is. earning. a. 51%. interest. in. Husab. by. spending.US$300,000.on.exploration..Kalahari’s.aims. to. take.one.or.more.of. its.projects. into.production.by the end of 2008, and if a sufficient resource can be established at Husab, its strategy would be secure operational cash flow by initially sending mined ore to the Rössing plant for toll treatment. If the.proven.resource.turned.out.to.be.big.enough.to.justify.the.investment,.an.on-site.ore.processing.plant.could.be.constructed.under.a.second-.stage.development...
The. aim. is. to. prove. about. 40. million. metric. tons. grading. an. average. 0.4. kg/t,. for. a. contained.resource.of.+35.million.pounds.(+15,900.metric.tons).U3O8..Drilling.was.initially.concentrated.on.the Ida Dome alaskite zone based on encouraging surface radiometrics which confirmed uranium mineralisation. along. a. 4. km. strike. distance.. The. best. intersections. to. date. include. 8. metres. at.2.32.kg/t.U3O8,.9.metres.at.1.08.kg/t.and.14.metres.at.1.06.kg/t.over.14.metres..Four.new.high.potential targets have been identified also, comprising Hildenhof zone, an eastern extension of the Goanikontes.anomaly.just.outside.the.licence.area;.Ida.East.zone,.interpreted.as.the.eastern.section.of.a.uraniferous.structure;.Welwichia.zone,.a.small.alaskite.body.on.the.north.of.Ida.Dome;.Rössing.
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South.zone,.interpreted.to.be.an.extension.of.the.rock.formation.hosting.the.Rössing.mine..
In.early.November.2006,.Kalahari.announced.that.the.MME.had.offered.Extract.a.new.EPL.located.immediately.the.south.of.the.Husab.joint.venture.licence,.containing.extensions.to.the.uranium-bearing.stratigraphy.currently.being.drilled.there..It.is.intended.this.second.EPL,.which.Kalahari.stated. will. initially. be. granted. for. one. year. “as. per. the. new. policy. for. nuclear. fuel. licences. in.Namibia”,.will.be.incorporated.within.the.existing.joint.venture..Limited.drilling.over.a.number.of.prospects.in.the.new.licence.area.had.been.carried.out.by.Anglo.American.corporation.in.1974.to.1981,.including.three.targets.representing.strike.extensions.of.the.Ida.Dome.and.Ida.East.prospects,.which. strongly. suggest. that. uranium. mineralisation. is. developed. over. a. greater. distance. than.previously.assessed.
New projects starting up...Other.known.deposits.or.potential.uranium.occurrences.have. recently.attracted. the. interest.of.a.number.of.other.foreign.juniors,.which.had.either.started.or.were.due.to.commence.exploration.shortly. at. the. time. this. survey. was. compiled..Australia’s. Bannerman. Resources. began. a. 3,500.metre.diamond.core.drilling.programme.at. the.alaskite-hosted.Goanikontes.deposit.some.20.km.west-southwest. of. Rössing. in. September. 2006,. aimed. at. verifying. historic. data. and. increasing.information. on. mineralisation. attributes.. Perth-based. Bannerman. acquired. an. 80%. interest. in.Namibia’s.Turgi.Investments.(Pty).Ltd.in.mid-2005,.which.was.granted.two.EPLs.in.May.2006..
The. 500. sq. km. Welwitschia. licence. contains. 12. known. uranium. anomalies,. with. continuous.mineralisation.over.22.km.of.strike.indicated.for.the.Goanikontes.dome.area..Drilling.was.initially.concentrated.on.Goanikontes.Anomaly.A,.but.is.likely.to.be.extended.elsewhere.as.Bannerman.says.the.results.from.reprocessing.historic.exploration.data.have.exceeded.its.expectations..These.have.highlighted uranium mineralisation over 37 km of strike and outlined five new prospective zones. Bannerman.also.began.a.9,000.metre.air.core.drilling.programme.at.the.Elspe.palaeo-channel.of.calcretised.uranium.sediments.within.its.second.EPL,.Swakop.River.(813.sq.km),.which.surrounds.the.Langer.Heinrich.mine..Reprocessed.data.shows.that.Elspe.is.larger.than.previously.indicated.and extends north of the Swakop River into areas of valley-fill sedimentation.
At.the.Marenica.mineralised.palaeo-channel.prospect,.some.60.km.north.of.Rössing,.ASX-listed.West.Australian.Metals.(WME).is.targeting.8,000.metric.tons.of.alaskite-hosted.contained.uranium.within.some.40.million.metric.tons.of.near-surface.material.grading.an.average.of.200ppm.(0.02%).U3O8..Historic.drill.data.–.which.covered.only.about.a.third.of.the.present.706.sq.km.EPL.–.from.open file reports at the Ministry of Mines and Energy (MME) indicate several higher-grade intersections,. including.10.metres.averaging.980.parts.per.million.U3O8.and.8.metres.averaging.500.ppm.(0.05%).U3O8..Perth-based.WME.is.earning.an.80%.interest.in.a.joint.venture.with.the.Namibian.licence.holder,.Jaco.Smit..
A first phase radiometry, sampling and trenching program was completed in September 2006, and WME.is.also.assessing.whether.previous.metallurgical.testwork.of.mineralised.samples.yielding.good.acid.leaching.results.was.representative.of.the.whole.ore.body,.with.South.Africa’s.Mintek.recently.appointed.project.metallurgical.consultants.
In. October. 2006,.ASX-listed. Deep. Yellow. Ltd. (DYL),. with. extensive. exploration. interests. in.Australia’s Northern Territory and South Australia, announced its diversification into Africa via a merger agreement securing access to significant Namibian uranium resources. Subiatico, Western Australia-based.DYL.is.acquiring.100%.of.Raptor.Partners.Ltd,.a.British.Virgin.Islands-registered.company,.whose.wholly-owned.Namibian.subsidiary,.Reptile. Investments.Four. (Pty).Ltd,.holds.three.contiguous.EPLs.granted.in.June.2006..These.cover.2,600.sq.km,.containing.substantial.near-surface mineralisation in valley-fill calcrete similar to Langer Heinrich.
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Known. deposits. comprise. Tubas,. Tumas,. Oryx. and.Namib.Park,.with.a.combined.historic.resource.estimate.of.68.5.million.metric.tons.grading.an.average.263.parts.per. million. (ppm-0.026%). U3O8,. containing. 18,000.metric.tons.of.uranium..The.largest.deposits.are.Tubas,.located. some. 40. km. east. of. Walvis. Bay,. with. a. 26.million.metric. ton.resource.grading.222.ppm.(0.02%).U3O8. containing. 5,800. metric. tons. of. uranium;. and.Oryx,. located. 70. km. east. of. Walvis. Bay,. with. an. 18.million.metric. ton.resource.grading.300.ppm.(0.03%).U3O8.containing.5,300.metric.tons.of.uranium..
DYL.anticipates.that.“considerable.further.exploration”.will be required for independent verification of these. estimates.. A. Namibian-based. technical. and.administrative.team.to.conduct.exploration.is.being.set.up,. which. will. be. led. by. DYL’s. executive. chairman,.Dr. Leon. Pretorius,. also. a. board. member. of. Langer.Heinrich. Uranium. (Pty). Ltd..The. two-tranche. merger.agreement. involved. an. initial. cash. payment. of.A$2.6.million.(US$2.0.million).to.Raptor’s.shareholders.and.the.issue.of.up.to.174.million.DYL.shares,.valuing.the.deal.at.some.AS$26.million.(US$20.million)...
.TSX. Venture. Exchange. (XE)-listed. Xemplar. Energy. Corporation. (Xemplar). intends. to. start.exploration. in. three.project.areas,.once. it.has.been.granted.six.EPLs.applied.for..As.of.October.2006,.it.was.anticipated.these.would.be.granted.soon,.according.to.the.company’s.president.and.chief.executive,.Gennan.McDowell..Vancouver-based.Xemplar.has.raised.C$6.million.(US$.5.3.million).for.Namibian.exploration.via.a.private.share.placement..Initial.work.will.include.radon.gas.surveys,.ground.sampling.and.drilling.to.determine.the.extent.of.uranium.mineralisation.
Xemplar’s.wholly-owned.Namibian.subsidiary,.Namura.Mineral.Resources.(Pty).Ltd.–.acquired.last.year.–.holds.three.exclusive.reconnaissance.licences.(ERLs).over.some.13,000.sq.km,.mainly.outside.the.main.west-central.Namib.uranium.exploration.zone..These.cover.Cape.Cross.(3,855.sq.km),.containing.several.mineralised.calcrete.palaeo-channels;.Warmbad.(4,700.sq.km),.containing.seven.uranium.occurrences.located.along.a.30.km.linear.feature.within.what.Xemplar.describes.as.an.identical.geological.environment.to.Rössing;.Aus.(3,276.sq.km),.containing.extensive.calcrete.palaeo-channels.within.radioactive.granites,.which.Xemplar.believes.may.host.a.Langer.Heinrich-type.deposit..
* Roger Murray is a London-based analyst and journalist specialising in the mineral resources of Namibia and Southern Africa.
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Namibia’s.mining.sector.generated.N$3.3.billion. (US$517.million).of.value.added.during.2005.
contributing.8.6%.towards. its.Gross.Domestic.Product.(GDP).of.N$38.6.billion.(US$6.billion)..
Diamond.mining.delivered.N$2.7.billion.(US$422.million).and.other.mining.and.quarrying.N$0.6.
billion (US$95 million). If copper smelting and zinc refining as well as diamond cutting and
polishing.were.included,.value.added.from.the.mining.sector.would.be.even.greater.
Mining and the economy
Mining value added in current prices (N$m)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
1990 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05
Other miningDiamonds
Source: National accounts, CentralBureau ofStatistics
In.real.terms.mining.sector.value.added.declined.1.8%.in.2005..This.decline.came.about.as.a.result.
of.lower.diamond.production..Non-diamond.mining.grew.by.5%.
Exports. from. the. mining. sector. reached. N$6.7. billion. (US$1. billion). to. which. must. be. added.
exports.of.blister.copper.and.SHG.zinc.worth.N$197.million.(US$31.million).and.N$1.3.billion.
(US$205.million).respectively.
Mining value added in current prices (N$m)
Mining employment
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At.the.end.of.2005.Chamber.members.alone.directly.employed.7,507.permanent.employees.plus.
an.additional.1,873.contractors.and.had.paid.out.considerably.more.than.N$1.1.billion.(US$172.
million).in.wages.and.salaries.during.the.year.
In 2005 the mining industry spent N$2.3 billion (US$358 million) on fixed investment contributing
22% to Namibia’s entire fixed investment of N$10.4 billion (US$1.6 billion) and surpassing
investment.by.the.whole.of.central.government.for.the.third.year.in.a.row..Exploration.expenditure.
reached.N$477.million.(US$74.million),.its.highest.level.in.over.ten.years.
The.mining.industry.continued.to.invest.heavily.in.people..Chamber.members.awarded.a.total.of.
121.bursaries.in.2005.for.higher.education.in.Namibia.and.South.Africa.and.vocational.training.at.
the.Namibian.Institute.of.Mining.Technology.
In.2005/06. the.Ministry.of.Finance.estimated. that. tax. revenue. from. the.mining. industry.would.
amount. to. N$48.3. million. (US$7.5. million). from. diamond. mining. and. N$6.5. million. (US$1.
million).from.other.mining..Diamond.royalty.tax.was.estimated.to.yield.N$242.million.(US$38.
million)..No.dividends.were.expected.from.either.Namdeb.or.Rössing.
Diamond and non-diamond mining taxation (N$m)
0
500
1,000
1,500
2,000
2,500
90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07
Budgeted
Actual
Source:Budgetdocuments
Mining GFCF as % of GDP (includes exploration expenditure)
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
1990 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05
Source: National accounts, Central Bureau of Statistics
Diamond and non-diamond mining taxation (N$m)
Mining fixed investment as % of GDP (Includes exploration expenditure)
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In 2006/07 the Ministry of Finance estimates profits tax revenue from the mining industry will
amount. to.N$45.million.(US$7.million).from.diamond.mining.and.N$7.million.(US$1.million).
from other mining, a figure grossly underestimated. Diamond royalties are expected to yield N$316
million.(US$49.million).while.only.nominal.dividends.of.N$10,000.(US$1,560).are.expected.from.
Namdeb.and.Rössing..N$30.million.(US$5.million).was.expected.from.the.new.mining.royalty.tax.
at.the.time.of.the.main.budget.in.March.2006.although.this.estimate.was.made.before.the.revisions.
to.the.tax.gazetted.in.November.2006..If.PAYE,.VAT.and.other.tax.payments.by.the.mining.industry.
to Namibia’s fiscus are taken into account, tax revenue from the industry would be far higher.
* Conversions to US dollars have been made using an average exchange rate for 2005 of
N$6.41:US$ used by the Central Bureau of Statistics in the National Planning Commission
Budgeted and actual mining corporate tax revenue (N$m)
0
50
100
150
200
250
300
90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07
Budgeted Actual
Source:Budget documents
Budgeted and actual non-diamond mining corporate tax
revenue (N$m)
Budgeted and actual diamond tax revenue (N$m)*
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07
Budgeted Actual
* from 1990/91-1994/95 diamond corporatetax + diamond profitstax + diamond export duty
Namdeb created
Source: budget
Budgeted and actual diamond tax revenue (N$m)*
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Budgeted and actual mining corporate tax revenue (N$m)
0
50
100
150
200
250
300
90/91 91/92 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07
Budgeted Actual
Source:Budget documents
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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Diamond Fields (carats) 5,80� 6,69� - �6,4�0 �5,40� �6,�6� �9,4�� n/a
Langer Heinrich (tonnes of uranium oxide)
Namdeb (carats) �50,��5 �,�86,��� �,54�,966 �,��8,998 �,�0�,9�8 �,�40,6�� �,�5�,��5 �,�59,�00 �,��5,��8 �,�89,��6 �,��0,�08 �,�84,�04 �,��5,899 �,454,�56 �,858,�8� �,800,000
Namdeb (carats) 696,9�4 80�,��9 99�,8�� 8�8,000
De Beers Marine Namibia (carats) 5��,05� 60�,0�� 84�,965 9��,000
Beach and marine contractors (carats) 65,9�� 45,580 ��,546
Navachab (kg of gold) �,45� �,�09 �,865 �,�90 �,�88 �,89� �,0�5 �,�0� �,855 �,008 �,�99 �,694 �,650 �,�98 �,068 �,5�9
Ocean Diamond Mining Holdings Ltd 59,��� 59,��8 ��,���
Okorusu Fluorspar (wet metric tonnes) �5,980 �9,�46 ��,��6 4�,�49 50,645 �6,889 ��,�85 ��,�08 4�,��9 5�,�00 66,��8 8�,�45 8�,084 �9,�49 �04,�6� ��4,886
Ongopolo Mining and Processing
Ongopolo Processing
Blister copper (tonnes) �9,�45 �9,�65 ��,0�0 �9,�45 �5,494 �5,�40 �6,659 �6,0�9 8,0�4 - 5,08� ��,0�5 ��,850 �6,�06 �6,�06 ��,56�
Kombat mine
Copper concentrate (tonnes) �0,��� ��,95� ��,�6� �0,460 �6,�4� �4,0�9 �8,4�0 �8,858 8,�60 - �5,6�4 �8,�80 ��,8�6 �6,�0� �6,5�5
Otjihase mine
Copper concentrate (tonnes) �4,��8 �4,498 44,864 5�,�44 4�,56� �5,4�9 �5,88� �6,�8� �,045 - �,485 �6,�5� �9,��5 �5,5�� �8,0��
Pyrite concentrate (tonnes) ��8,9�4 ���,��9 �64,�9� �00,5�5 ���,6�4 �0�,�40 90,��5 9�,684 �8,��4 - ��,96� 56,994 �,6�� ��,�86 �,658 �,��9
Tsumeb operations
Copper concentrate (tonnes) 4�,�8� 44,��5 �6,95� �8,��0 ��,58� ��,�48 ��,�4� 5,�40 �,6�4 - �,0�6 ��,65� �4,5��
Khusib Springs
Copper concentrate (tonnes) ��,4��
Rosh Pinah Zinc Corporation
Zinc concentrate (tonnes) 66,�9� 6�,�54 68,��� 5�,995 64,56� 59,�05 69,689 �4,6�� �8,6�� 69,�9� ��,5�5 �0,6�0 ��,58� �0�,9�0 ���,��� ��6,���
Lead concentrate (tonnes) ��,8�5 �9,4�0 �9,68� �6,859 �4,6�9 �6,4�� �8,��� �6,�88 �4,��� �9,�8� �0,665 �6,�8� �4,�40 ��,45� ��,�88 �4,690
Rössing Uranium (tonnes of uranium oxide) n/a ��85* ��90* ��68* �4��* �,608 �,�88 �,4�5 �,��8 �,��� �,�0� �,640 �,�5� �,40� �,58� �,���
*short tons
Sakawe Mining Corporation (carats) ��9,546 ��0,�00
Salt Company
Coarse salt ��0,800 90,��� 6�,600 80,000 58,9�0 60,000 4�,550 4�,��0 6�,9�5 60,�00 ��,0�� 58,000 54,��9 84,8�8 6�,58� 66,994
Refined salt 980 �,065 �,�5� �,�00 800 �,6�0 �,��5 5,854 5,��� �,��0 4,�4� ��,�50 9,640 ��,099 ��,�84 �0,��5
Rock salt n/a 6,4�0 6,6�8 4,0�� �,�0� �,�00 n/a 5,008 6,0�5 6,��0 4,585 6,400 5,6�� ��,4�� �,069 �,�99
Table Salt 9,�88 4,��8 5,�89
Skorpion Zinc (tonnes of SHG zinc) �5 4�,4�6 ��9,�05 ���,8��
Trans Hex Group (contractor to other companies)
Walvis Bay Salt Refiners (tonnes of coarse salt) n/a n/a n/a n/a �84,�05 ��0,000 �58,��� 4��,�90 4�4,�98 4�9,��0 48�,000 500,44� 55�,000 56�,000 ���,000 5��,000
Annex �: Key StatisticsOutput by mine
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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Diamond Fields (carats) 5,80� 6,69� - �6,4�0 �5,40� �6,�6� �9,4�� n/a
Langer Heinrich (tonnes of uranium oxide)
Namdeb (carats) �50,��5 �,�86,��� �,54�,966 �,��8,998 �,�0�,9�8 �,�40,6�� �,�5�,��5 �,�59,�00 �,��5,��8 �,�89,��6 �,��0,�08 �,�84,�04 �,��5,899 �,454,�56 �,858,�8� �,800,000
Namdeb (carats) 696,9�4 80�,��9 99�,8�� 8�8,000
De Beers Marine Namibia (carats) 5��,05� 60�,0�� 84�,965 9��,000
Beach and marine contractors (carats) 65,9�� 45,580 ��,546
Navachab (kg of gold) �,45� �,�09 �,865 �,�90 �,�88 �,89� �,0�5 �,�0� �,855 �,008 �,�99 �,694 �,650 �,�98 �,068 �,5�9
Ocean Diamond Mining Holdings Ltd 59,��� 59,��8 ��,���
Okorusu Fluorspar (wet metric tonnes) �5,980 �9,�46 ��,��6 4�,�49 50,645 �6,889 ��,�85 ��,�08 4�,��9 5�,�00 66,��8 8�,�45 8�,084 �9,�49 �04,�6� ��4,886
Ongopolo Mining and Processing
Ongopolo Processing
Blister copper (tonnes) �9,�45 �9,�65 ��,0�0 �9,�45 �5,494 �5,�40 �6,659 �6,0�9 8,0�4 - 5,08� ��,0�5 ��,850 �6,�06 �6,�06 ��,56�
Kombat mine
Copper concentrate (tonnes) �0,��� ��,95� ��,�6� �0,460 �6,�4� �4,0�9 �8,4�0 �8,858 8,�60 - �5,6�4 �8,�80 ��,8�6 �6,�0� �6,5�5
Otjihase mine
Copper concentrate (tonnes) �4,��8 �4,498 44,864 5�,�44 4�,56� �5,4�9 �5,88� �6,�8� �,045 - �,485 �6,�5� �9,��5 �5,5�� �8,0��
Pyrite concentrate (tonnes) ��8,9�4 ���,��9 �64,�9� �00,5�5 ���,6�4 �0�,�40 90,��5 9�,684 �8,��4 - ��,96� 56,994 �,6�� ��,�86 �,658 �,��9
Tsumeb operations
Copper concentrate (tonnes) 4�,�8� 44,��5 �6,95� �8,��0 ��,58� ��,�48 ��,�4� 5,�40 �,6�4 - �,0�6 ��,65� �4,5��
Khusib Springs
Copper concentrate (tonnes) ��,4��
Rosh Pinah Zinc Corporation
Zinc concentrate (tonnes) 66,�9� 6�,�54 68,��� 5�,995 64,56� 59,�05 69,689 �4,6�� �8,6�� 69,�9� ��,5�5 �0,6�0 ��,58� �0�,9�0 ���,��� ��6,���
Lead concentrate (tonnes) ��,8�5 �9,4�0 �9,68� �6,859 �4,6�9 �6,4�� �8,��� �6,�88 �4,��� �9,�8� �0,665 �6,�8� �4,�40 ��,45� ��,�88 �4,690
Rössing Uranium (tonnes of uranium oxide) n/a ��85* ��90* ��68* �4��* �,608 �,�88 �,4�5 �,��8 �,��� �,�0� �,640 �,�5� �,40� �,58� �,���
*short tons
Sakawe Mining Corporation (carats) ��9,546 ��0,�00
Salt Company
Coarse salt ��0,800 90,��� 6�,600 80,000 58,9�0 60,000 4�,550 4�,��0 6�,9�5 60,�00 ��,0�� 58,000 54,��9 84,8�8 6�,58� 66,994
Refined salt 980 �,065 �,�5� �,�00 800 �,6�0 �,��5 5,854 5,��� �,��0 4,�4� ��,�50 9,640 ��,099 ��,�84 �0,��5
Rock salt n/a 6,4�0 6,6�8 4,0�� �,�0� �,�00 n/a 5,008 6,0�5 6,��0 4,585 6,400 5,6�� ��,4�� �,069 �,�99
Table Salt 9,�88 4,��8 5,�89
Skorpion Zinc (tonnes of SHG zinc) �5 4�,4�6 ��9,�05 ���,8��
Trans Hex Group (contractor to other companies)
Walvis Bay Salt Refiners (tonnes of coarse salt) n/a n/a n/a n/a �84,�05 ��0,000 �58,��� 4��,�90 4�4,�98 4�9,��0 48�,000 500,44� 55�,000 56�,000 ���,000 5��,000
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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Namdeb Diamond Corporation (Pty) Ltd 6,��� 6,�8� 5,�08 4,6�� 4,645 4,448 �,9�� �,5�� �,��5 �,�69 �,0�4 �,9�6 �,890 �,95� �,99� �,956
De Beers Marine Namibia 546 565 596
Namibian Minerals Corporation* 69 �� �5 �6� �6� �00
Sakawe Mining Corporation �8 ��0 �8�
Ocean Diamond Mining* �58 �60 �40
Trans Hex Group Limited 58 �0� ��8 �0
Diamond Fields (Namibia) (Pty) Ltd � 4 � � �� n/a
Diaz Point Exploration (Pty) Ltd 85 50 8� 64 45
Rössing Uranium Ltd �,��8 �,495 �,�9� �,�95 �,�84 �,��9 �,�90 �,�49 �,�8� �,006 808 �98 ��� 8�� 8�0 860
Langer Heinrich Uranium (Pty) Ltd �0
Ongopolo Mining and Processing Ltd (formerly TCL) 90�
• Ongopolo Processing (formerly Tsumeb smelter) 69� 6�6 45� 65� 608 59� 468 5�5 5�� ��� ��� ��4 ��� ���
• Tsumeb mine �,69� �,545 �,585 �,�59 �,�00 �,�00 5�� 448 ��4 50 �0� ��0
• Kombat mine 64� 6�� 6�� 6�� 59� 59� 50� 5�� 5�� �06 �0� �65 �6� �6�
• Otjihase mine 6�� 64� 64� 656 6�� 58� 5�8 509 498 ��9 �8� ��4 �66 �6�
• Khusib Springs �6
Anglogold Namibia (Pty) Ltd (Navachab mine) �5� ��9 �9� �88 ��8 �69 �94 ��� ��9 �6� ��4 ��� ��� �46 �46 �80
Rosh Pinah Zinc Corporation (Pty) Ltd 449 50� 5�0 ��� �40 �4� 40� 4�5 4�� 4�4 4�8 49� 5�� 498 50� 5��
Imcor Tin (Pty) Ltd (Uis tin mine) 60 60
Peralin (Pty) Ltd (marble) �
SWA Lithium Mines (Pty) Ltd (Rubicon mine) �0�
Skorpion Zinc (Pty) Ltd 50� 598 6�6 �0�
Namzinc (Pty) Ltd (Skorpion) 565
Okorusu Fluorspar (Pty) Ltd ��� ��� ��8 ��9 ��9 �46 �49 �65 ��9 �5� �5� �86 �9� �08 �49
Walvis Bay Salt Refiners (Pty) Ltd 40 4� 80 8� 8� 8� 96 �0� 98 �05 �08 ��0
Salt Company (Pty) Ltd �� 68 86 50 6� 58 60 49 5� 6� 59 6� �0 �� �� ��
NIMT 65
Total employment ��,605 ��,�65 ��,50� 9,854 9,69� 9,��5 8,��9 8,��8 �,58� 5,65� 6,�0� 5,948 6,6�� �,04� �,449 �,4�8
Note: Namdeb Diamond Corporation (Pty) Ltd employment figures include subsidiary
Employment*
Source: CMN annual reports* Permanent employees
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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Namdeb Diamond Corporation (Pty) Ltd 6,��� 6,�8� 5,�08 4,6�� 4,645 4,448 �,9�� �,5�� �,��5 �,�69 �,0�4 �,9�6 �,890 �,95� �,99� �,956
De Beers Marine Namibia 546 565 596
Namibian Minerals Corporation* 69 �� �5 �6� �6� �00
Sakawe Mining Corporation �8 ��0 �8�
Ocean Diamond Mining* �58 �60 �40
Trans Hex Group Limited 58 �0� ��8 �0
Diamond Fields (Namibia) (Pty) Ltd � 4 � � �� n/a
Diaz Point Exploration (Pty) Ltd 85 50 8� 64 45
Rössing Uranium Ltd �,��8 �,495 �,�9� �,�95 �,�84 �,��9 �,�90 �,�49 �,�8� �,006 808 �98 ��� 8�� 8�0 860
Langer Heinrich Uranium (Pty) Ltd �0
Ongopolo Mining and Processing Ltd (formerly TCL) 90�
• Ongopolo Processing (formerly Tsumeb smelter) 69� 6�6 45� 65� 608 59� 468 5�5 5�� ��� ��� ��4 ��� ���
• Tsumeb mine �,69� �,545 �,585 �,�59 �,�00 �,�00 5�� 448 ��4 50 �0� ��0
• Kombat mine 64� 6�� 6�� 6�� 59� 59� 50� 5�� 5�� �06 �0� �65 �6� �6�
• Otjihase mine 6�� 64� 64� 656 6�� 58� 5�8 509 498 ��9 �8� ��4 �66 �6�
• Khusib Springs �6
Anglogold Namibia (Pty) Ltd (Navachab mine) �5� ��9 �9� �88 ��8 �69 �94 ��� ��9 �6� ��4 ��� ��� �46 �46 �80
Rosh Pinah Zinc Corporation (Pty) Ltd 449 50� 5�0 ��� �40 �4� 40� 4�5 4�� 4�4 4�8 49� 5�� 498 50� 5��
Imcor Tin (Pty) Ltd (Uis tin mine) 60 60
Peralin (Pty) Ltd (marble) �
SWA Lithium Mines (Pty) Ltd (Rubicon mine) �0�
Skorpion Zinc (Pty) Ltd 50� 598 6�6 �0�
Namzinc (Pty) Ltd (Skorpion) 565
Okorusu Fluorspar (Pty) Ltd ��� ��� ��8 ��9 ��9 �46 �49 �65 ��9 �5� �5� �86 �9� �08 �49
Walvis Bay Salt Refiners (Pty) Ltd 40 4� 80 8� 8� 8� 96 �0� 98 �05 �08 ��0
Salt Company (Pty) Ltd �� 68 86 50 6� 58 60 49 5� 6� 59 6� �0 �� �� ��
NIMT 65
Total employment ��,605 ��,�65 ��,50� 9,854 9,69� 9,��5 8,��9 8,��8 �,58� 5,65� 6,�0� 5,948 6,6�� �,04� �,449 �,4�8
Note: Namdeb Diamond Corporation (Pty) Ltd employment figures include subsidiary
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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Value added (current prices)
Diamonds 554 ��� ��5 598 8�� �6� �,�69 �,�5� �,�58 �,69� �,9�4 �,854 �,4�� �,6�0 �,048 �,�08
Other mining 5�0 �8� ��� �5� �96 �95 ��� 4�8 4�� �5� 6�� 809 �,��8 �45 44� 609
Mining and quarrying �,084 �,�0� �,��� 85� �,�68 �,058 �,540 �,��9 �,8�5 �,950 �,6�� �,66� 4,565 �,9�5 �,489 �,���
GDP (N$m) 6,05� 6,85� 8,050 9,�0� ��,549 ��,�06 �5,0�� �6,�5� �8,�89 �0,684 ��,690 ��,686 ��,908 ��,84� �6,�8� �8,560
As % of GDP
Diamonds 9.�% �0.5% 9.6% 6.4% �.6% 6.0% �.8% �.5% �.�% 8.�% 8.�% �0.�% �0.4% �.8% 8.4% �.0%
Other mining 8.8% 5.6% 4.�% �.�% �.4% �.�% �.5% �.9% �.5% �.�% �.9% �.9% �.5% �.0% �.�% �.6%
Mining and quarrying ��.9% �6.�% ��.8% 9.�% ��.0% 8.�% �0.�% �0.�% 9.8% 9.4% ��.0% ��.�% ��.9% 8.8% 9.6% 8.6%
Value added (constant prices) �990 prices �995 prices
Diamonds 554 85� �,045 �6� 845 �6� �8� �8� �9� 908 84� 80� 94� 909 �,�60 �,�08
Other mining 5�0 44� �80 �48 �8� �95 ��� �6� ��4 �0� �4� ��4 �55 ��8 4�8 450
Mining and quarrying �084 �,�95 �,4�5 �,��0 �,��8 �,058 �,�00 �,�45 �,��� �,��� �,�90 �,��� �,�9� �,��� �,688 �,658
% growth
Diamonds 5�.8% ��.�% -��.�% �0.9% �.6% -0.�% �.4% �4.5% -6.�% -5.�% ��.�% -�.5% �8.6% -4.�%
Other mining -�6.4% -�4.�% -8.4% �0.�% �.5% �4.5% -�0.�% -6.5% ��.�% -8.5% ��.�% -�.6% �0.5% 5.�%
Mining and quarrying �9.5% �0.0% -��.�% �0.6% 4.0% 4.�% -�.4% 8.4% -�.�% -6.�% �6.�% -4.6% �6.5% -�.8%
Gross Fixed Capital Formation (current prices)
Mining and quarrying �80 �4� ��4 �58 ��� �0� 56� 4�� 500 66� 8�8 958 8�4 �,084 �,9�9 �,�98
as % of value added �5% ��% ��% �0% ��% �9% ��% �5% ��% �4% ��% �6% �9% �04% 55% 69%
as % of GDP 6.�% �.�% �.9% �.8% �.9% �.4% �.8% �.6% �.�% �.�% �.5% �.5% �.�% 9.�% 5.�% 6.0%
Source: CBS National Accounts
Exploration expenditure (N$m) �90 ��� ��� ��4 ��5 �6� �49 �46 �64 4�� 4��
Source: CBS National Accounts
Exploration expenditure (N$m) 66.9 �9.� �0.5 �8.� ��.8 94.8 ��8.� 9�.� ��4.0 ��5.0 �6�.0 �49.0 �46.0 �64.0 n/a n/a
Source: CMN annual reports
Number of Class D members �� �� �4 �5 �4 �9 �� �5 �� �� �4 �5 �4 �4 �5 �5
Source: CMN annual reports
Exports of ores and minerals
Metal ores including uranium ore 6�5 60� 60� 8�8 905 945 �,�04 �,�90 �,�4� �,�09 �,095 �,�6� �5�6
Other minerals �4 5� 40 �8 �� �9 5� 59 64 ��� 95 ��� ��6
Diamonds �,5�5 �,486 �,�6� �,��8 �,495 �,�50 �,860 �,94� 4,��� 5,�05 �,56� 4,9�0 50��
Total �,�64 �,��8 �,404 �,�94 �,4�� �,��4 4,0�� 5,�96 5,5�8 �,0�6 4,�5� 6,�08 6,68�
Copper �88 �44 �50 �54 �94 5� 0 58 �0� �6� �86 ��� �9�
Zinc refined �56 694 ����
�,�5� �,�8� �,654 �,�48 �,6�6 �,�86 4,0�� 5,�54 5,��9 �,�88 5,09� �,��4 8,�9�
Total exports of goods 4,05� 4,659 5,��� 6,095 6,�6� 6,8�� �,5�9 9,�64 �0,550 ��,�60 �4,��9 ��,8�0 �5,9��
Diamonds as % of merchandise exports ��% ��% �5% �8% 4�% ��% �8% 4�% 40% �9% �5% �6% ��%
Minerals as % of merchandise exports 58% 5�% 5�% 55% 59% 4�% 5�% 5�% 55% 55% �6% 5�% 5�%
Mining and the economy
Source: BoN annual reports/CBS National Accounts
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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Value added (current prices)
Diamonds 554 ��� ��5 598 8�� �6� �,�69 �,�5� �,�58 �,69� �,9�4 �,854 �,4�� �,6�0 �,048 �,�08
Other mining 5�0 �8� ��� �5� �96 �95 ��� 4�8 4�� �5� 6�� 809 �,��8 �45 44� 609
Mining and quarrying �,084 �,�0� �,��� 85� �,�68 �,058 �,540 �,��9 �,8�5 �,950 �,6�� �,66� 4,565 �,9�5 �,489 �,���
GDP (N$m) 6,05� 6,85� 8,050 9,�0� ��,549 ��,�06 �5,0�� �6,�5� �8,�89 �0,684 ��,690 ��,686 ��,908 ��,84� �6,�8� �8,560
As % of GDP
Diamonds 9.�% �0.5% 9.6% 6.4% �.6% 6.0% �.8% �.5% �.�% 8.�% 8.�% �0.�% �0.4% �.8% 8.4% �.0%
Other mining 8.8% 5.6% 4.�% �.�% �.4% �.�% �.5% �.9% �.5% �.�% �.9% �.9% �.5% �.0% �.�% �.6%
Mining and quarrying ��.9% �6.�% ��.8% 9.�% ��.0% 8.�% �0.�% �0.�% 9.8% 9.4% ��.0% ��.�% ��.9% 8.8% 9.6% 8.6%
Value added (constant prices) �990 prices �995 prices
Diamonds 554 85� �,045 �6� 845 �6� �8� �8� �9� 908 84� 80� 94� 909 �,�60 �,�08
Other mining 5�0 44� �80 �48 �8� �95 ��� �6� ��4 �0� �4� ��4 �55 ��8 4�8 450
Mining and quarrying �084 �,�95 �,4�5 �,��0 �,��8 �,058 �,�00 �,�45 �,��� �,��� �,�90 �,��� �,�9� �,��� �,688 �,658
% growth
Diamonds 5�.8% ��.�% -��.�% �0.9% �.6% -0.�% �.4% �4.5% -6.�% -5.�% ��.�% -�.5% �8.6% -4.�%
Other mining -�6.4% -�4.�% -8.4% �0.�% �.5% �4.5% -�0.�% -6.5% ��.�% -8.5% ��.�% -�.6% �0.5% 5.�%
Mining and quarrying �9.5% �0.0% -��.�% �0.6% 4.0% 4.�% -�.4% 8.4% -�.�% -6.�% �6.�% -4.6% �6.5% -�.8%
Gross Fixed Capital Formation (current prices)
Mining and quarrying �80 �4� ��4 �58 ��� �0� 56� 4�� 500 66� 8�8 958 8�4 �,084 �,9�9 �,�98
as % of value added �5% ��% ��% �0% ��% �9% ��% �5% ��% �4% ��% �6% �9% �04% 55% 69%
as % of GDP 6.�% �.�% �.9% �.8% �.9% �.4% �.8% �.6% �.�% �.�% �.5% �.5% �.�% 9.�% 5.�% 6.0%
Source: CBS National Accounts
Exploration expenditure (N$m) �90 ��� ��� ��4 ��5 �6� �49 �46 �64 4�� 4��
Source: CBS National Accounts
Exploration expenditure (N$m) 66.9 �9.� �0.5 �8.� ��.8 94.8 ��8.� 9�.� ��4.0 ��5.0 �6�.0 �49.0 �46.0 �64.0 n/a n/a
Source: CMN annual reports
Number of Class D members �� �� �4 �5 �4 �9 �� �5 �� �� �4 �5 �4 �4 �5 �5
Source: CMN annual reports
Exports of ores and minerals
Metal ores including uranium ore 6�5 60� 60� 8�8 905 945 �,�04 �,�90 �,�4� �,�09 �,095 �,�6� �5�6
Other minerals �4 5� 40 �8 �� �9 5� 59 64 ��� 95 ��� ��6
Diamonds �,5�5 �,486 �,�6� �,��8 �,495 �,�50 �,860 �,94� 4,��� 5,�05 �,56� 4,9�0 50��
Total �,�64 �,��8 �,404 �,�94 �,4�� �,��4 4,0�� 5,�96 5,5�8 �,0�6 4,�5� 6,�08 6,68�
Copper �88 �44 �50 �54 �94 5� 0 58 �0� �6� �86 ��� �9�
Zinc refined �56 694 ����
�,�5� �,�8� �,654 �,�48 �,6�6 �,�86 4,0�� 5,�54 5,��9 �,�88 5,09� �,��4 8,�9�
Total exports of goods 4,05� 4,659 5,��� 6,095 6,�6� 6,8�� �,5�9 9,�64 �0,550 ��,�60 �4,��9 ��,8�0 �5,9��
Diamonds as % of merchandise exports ��% ��% �5% �8% 4�% ��% �8% 4�% 40% �9% �5% �6% ��%
Minerals as % of merchandise exports 58% 5�% 5�% 55% 59% 4�% 5�% 5�% 55% 55% �6% 5�% 5�%
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Revenue(N$m)
Other mining
Budgeted ��0.0 5�.0 �0.0 48.0 6�.0 �0.0 40.0 60.0 6�.0 ��0.0 65.0 55.0 ��0.0 �50.0 �4.9 6.5 �.0
Actual �5.8 �6.� �.6 5.8 ��.5 65.6 44.8 �8.6 �9.� ���.� �6.4 �06.� �8�.9 �.� �.9 n/a n/a
Diamondmining
Diamond mining - budgeted ��.0 0.0 5�.0 60.0 �05.0 �05.0 �00.0 �00.0 �00.0 �00.0 �85.0 4�5.0 �45.0 �,�60.0 5�.0 48.� 45.0
Diamond mining - actual 6�.� 0.0 90.� �64.� ��6.0 85.� 89.9 505.0 �6�.4 �4�.� 4�9.9 �64.4 �,�5�.4 ��5.4 �0�.4 n/a n/a
Diamond profits - budgeted �4.0 9.0 �5.0 �.0 �0.5 0.0
Diamond profits - actual 0.0 ��.� �4.9 ��.4
Diamond export - budgeted 65.0 65.0 95.0 80.0 ��0.0 �.0
Diamond export - actual 60.� 90.9 9�.6 ��4.� �.�
Diamond royalties - budgeted 0.0 �40.0 �60.0 ��6.0 �49.9 �05.0 �40.0 �94.0 4�0.0 450.0 500.0 �4�.� ��6.4
Diamond royalties - actual �04.� ��0.8 �04.� �98.8 �99.� �69.4 �40.0 �86.� 4�9.� �0�.9 �85.4
Budgeted �5�.0 �4.0 ���.0 �4�.0 ��5.5 �46.0 �60.0 ��6.0 449.9 405.0 4�5.0 �69.0 �,�65.0 �,6�0.0 55�.0 �90.4 �6�.4
Actual ���.6 ��4.� �08.� �95.6 ���.� ��5.9 �94.� �0�.8 �60.� 4��.� 6�9.9 �,050.5 �,6�6.5 4��.� 686.8 n/a n/a
Allmining
Budgeted �8�.0 ��5.0 �9�.0 �9�.0 �98.5 ��6.0 �00.0 ��6.0 5�0.9 5�5.0 490.0 8�4.0 �,�85.0 �,�60.0 566.9 �96.9 �68.4
Actual �98.5 �40.� ���.� �0�.5 ��0.8 �8�.4 ��8.9 ���.4 �80.0 6��.8 ��6.� �,�56.� �,9�0.4 480.5 694.� n/a n/a
Total tax revenue �,��4.� �,��4.� �,��8.� �,68�.� �,��6.� �,6�0.� 4,��4.0 5,�06.� 5,49�.5 6,59�.� �,550.4 8,�65.9 9,��9.8 8,�6�.9 �0,468.� ��,�54.8 �4,��0.4
Non-diamond mining as % of tax revenue 4.4% �.�% 0.�% 0.�% �.�% �.8% �.�% 0.6% 0.�% �.�% 0.5% �.�% �.0% 0.0% 0.�% n/a n/a
Diamond mining as % of tax revenue �.�% 5.�% 8.8% ��.0% �.4% 6.0% �.�% ��.8% 6.6% 6.�% 9.0% ��.9% ��.5% 5.4% 6.6% n/a n/a
All mining as % of tax revenue ��.4% 6.5% 8.9% ��.�% 8.6% �.8% 8.�% �4.�% 6.9% 9.5% 9.5% �4.�% �0.6% 5.5% 6.6% n/a n/a
Expenditure(N$’000)
��.� Mining and Mineral Resources Affairs and Services 9,4�� ��,60� �9,�4� �5,�85 �6,��� �8,0�0 ��,8�8 �0,5�9 �5,5�� ��,09� 46,�4� 54,��4 49,��5 5�,564 60,9�8 59,�44 8�,��4
Total government expenditure �,5�6,096 �,��0,0�� �,544,��9 �,�66,��� �,690,45� 4,�40,6�0 5,0��,�90 5 ,�54,09� 6,�84,��9 �,�5�,��� 8,446,9�� 9,�8�,989 �0,�86,��9 ��,�56,689 ��,�58,054 ��,80�,885 �5,�55,�50
as % of total spending 0.4% 0.4% 0.5% 0.8% 0.5% 0.4% 0.6% 0.5% 0.4% 0.5% 0.5% 0.6% 0.5% 0.5% 0.5% 0.5% 0.6%
Government revenue and expenditure data
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Revenue(N$m)
Other mining
Budgeted ��0.0 5�.0 �0.0 48.0 6�.0 �0.0 40.0 60.0 6�.0 ��0.0 65.0 55.0 ��0.0 �50.0 �4.9 6.5 �.0
Actual �5.8 �6.� �.6 5.8 ��.5 65.6 44.8 �8.6 �9.� ���.� �6.4 �06.� �8�.9 �.� �.9 n/a n/a
Diamondmining
Diamond mining - budgeted ��.0 0.0 5�.0 60.0 �05.0 �05.0 �00.0 �00.0 �00.0 �00.0 �85.0 4�5.0 �45.0 �,�60.0 5�.0 48.� 45.0
Diamond mining - actual 6�.� 0.0 90.� �64.� ��6.0 85.� 89.9 505.0 �6�.4 �4�.� 4�9.9 �64.4 �,�5�.4 ��5.4 �0�.4 n/a n/a
Diamond profits - budgeted �4.0 9.0 �5.0 �.0 �0.5 0.0
Diamond profits - actual 0.0 ��.� �4.9 ��.4
Diamond export - budgeted 65.0 65.0 95.0 80.0 ��0.0 �.0
Diamond export - actual 60.� 90.9 9�.6 ��4.� �.�
Diamond royalties - budgeted 0.0 �40.0 �60.0 ��6.0 �49.9 �05.0 �40.0 �94.0 4�0.0 450.0 500.0 �4�.� ��6.4
Diamond royalties - actual �04.� ��0.8 �04.� �98.8 �99.� �69.4 �40.0 �86.� 4�9.� �0�.9 �85.4
Budgeted �5�.0 �4.0 ���.0 �4�.0 ��5.5 �46.0 �60.0 ��6.0 449.9 405.0 4�5.0 �69.0 �,�65.0 �,6�0.0 55�.0 �90.4 �6�.4
Actual ���.6 ��4.� �08.� �95.6 ���.� ��5.9 �94.� �0�.8 �60.� 4��.� 6�9.9 �,050.5 �,6�6.5 4��.� 686.8 n/a n/a
Allmining
Budgeted �8�.0 ��5.0 �9�.0 �9�.0 �98.5 ��6.0 �00.0 ��6.0 5�0.9 5�5.0 490.0 8�4.0 �,�85.0 �,�60.0 566.9 �96.9 �68.4
Actual �98.5 �40.� ���.� �0�.5 ��0.8 �8�.4 ��8.9 ���.4 �80.0 6��.8 ��6.� �,�56.� �,9�0.4 480.5 694.� n/a n/a
Total tax revenue �,��4.� �,��4.� �,��8.� �,68�.� �,��6.� �,6�0.� 4,��4.0 5,�06.� 5,49�.5 6,59�.� �,550.4 8,�65.9 9,��9.8 8,�6�.9 �0,468.� ��,�54.8 �4,��0.4
Non-diamond mining as % of tax revenue 4.4% �.�% 0.�% 0.�% �.�% �.8% �.�% 0.6% 0.�% �.�% 0.5% �.�% �.0% 0.0% 0.�% n/a n/a
Diamond mining as % of tax revenue �.�% 5.�% 8.8% ��.0% �.4% 6.0% �.�% ��.8% 6.6% 6.�% 9.0% ��.9% ��.5% 5.4% 6.6% n/a n/a
All mining as % of tax revenue ��.4% 6.5% 8.9% ��.�% 8.6% �.8% 8.�% �4.�% 6.9% 9.5% 9.5% �4.�% �0.6% 5.5% 6.6% n/a n/a
Expenditure(N$’000)
��.� Mining and Mineral Resources Affairs and Services 9,4�� ��,60� �9,�4� �5,�85 �6,��� �8,0�0 ��,8�8 �0,5�9 �5,5�� ��,09� 46,�4� 54,��4 49,��5 5�,564 60,9�8 59,�44 8�,��4
Total government expenditure �,5�6,096 �,��0,0�� �,544,��9 �,�66,��� �,690,45� 4,�40,6�0 5,0��,�90 5 ,�54,09� 6,�84,��9 �,�5�,��� 8,446,9�� 9,�8�,989 �0,�86,��9 ��,�56,689 ��,�58,054 ��,80�,885 �5,�55,�50
as % of total spending 0.4% 0.4% 0.5% 0.8% 0.5% 0.4% 0.6% 0.5% 0.4% 0.5% 0.5% 0.6% 0.5% 0.5% 0.5% 0.5% 0.6%
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Mineral prices �990 �99� �99� �99� �994 �995 �996 �99� �998 �999 �000 �00� �00� �00� �004 �005
Copper cash wirebars (US$/tonne) n/a �,��6 �,�8� �,9�� �,�0� �,9�6 �,�9� �,��� �,65� �,5�� �,8�4 �,5�8 �,559 �,809 �,9�� �,�4�
Gold (US$/troy ounce) �84 �6� �44 �60 �84 �84 �88 ��0 �94 ��9 ��9 ��� ��0 �68 4�� 449
Lead (US$/tonne) n/a 44� 4�4 406 549 6�0 ��4 6�� 5�8 50� 454 4�6 45� 5�0 9�� 99�
Silver (US$/troy ounce) n/a 4.�0 �.9� 4.�� 5.�� 5.�0 5.�9 4.9� 5.5� 5.�� 4.95 4.�� 4.60 4.90 6.�0 �.40
Uranium oxide (US$/lb) - restricted market n/a n/a n/a 9.98 9.�� ��.�� 5.50 ��.09 �0.4� �0.�0 8.�0 9.�5 9.94 ��.9� �5.00
Uranium oxide (US$/lb) - unrestricted market 9.�5 8.�0 8.4� �.�� �.05 8.�� �4.0� �0.5� 9.0� 8.�5 6.99 �0.�5 �0.58 ��.40 �8.�0 �8.�0
Zinc (US$/tonne) �,5�0 �,��� �,��9 960 999 �,0�0 �,0�5 �,��� �,0�� �,0�6 �,��8 885 ��8 8�6 �,0�0 �,4��
Source: CMN annual reports, IJG from �00� onwards
�990 �99� �99� �99� �994 �995 �996 �99� �998 �999 �000 �00� �00� �00� �004 �005
Non-exclusive prospecting licences issued 55� 404 488 ��8 464 5�8 5�0 58� ��9 �6� ��8 ��6
Exclusive prospecting licences awarded �4 �4 5� ��� ��8 9� �55 �60 �0 �� �5 96
Claims registered �40 �95 �58 �4 85 ��6 �4� �06 ��� �4� �6� �9�
Mining licences granted � � � 9 4 8 5 4 8 �� � �
Exploration and prospecting
Note: Minerals Act only came into force on � April �994
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Mineral prices �990 �99� �99� �99� �994 �995 �996 �99� �998 �999 �000 �00� �00� �00� �004 �005
Copper cash wirebars (US$/tonne) n/a �,��6 �,�8� �,9�� �,�0� �,9�6 �,�9� �,��� �,65� �,5�� �,8�4 �,5�8 �,559 �,809 �,9�� �,�4�
Gold (US$/troy ounce) �84 �6� �44 �60 �84 �84 �88 ��0 �94 ��9 ��9 ��� ��0 �68 4�� 449
Lead (US$/tonne) n/a 44� 4�4 406 549 6�0 ��4 6�� 5�8 50� 454 4�6 45� 5�0 9�� 99�
Silver (US$/troy ounce) n/a 4.�0 �.9� 4.�� 5.�� 5.�0 5.�9 4.9� 5.5� 5.�� 4.95 4.�� 4.60 4.90 6.�0 �.40
Uranium oxide (US$/lb) - restricted market n/a n/a n/a 9.98 9.�� ��.�� 5.50 ��.09 �0.4� �0.�0 8.�0 9.�5 9.94 ��.9� �5.00
Uranium oxide (US$/lb) - unrestricted market 9.�5 8.�0 8.4� �.�� �.05 8.�� �4.0� �0.5� 9.0� 8.�5 6.99 �0.�5 �0.58 ��.40 �8.�0 �8.�0
Zinc (US$/tonne) �,5�0 �,��� �,��9 960 999 �,0�0 �,0�5 �,��� �,0�� �,0�6 �,��8 885 ��8 8�6 �,0�0 �,4��
Source: CMN annual reports, IJG from �00� onwards
�990 �99� �99� �99� �994 �995 �996 �99� �998 �999 �000 �00� �00� �00� �004 �005
Non-exclusive prospecting licences issued 55� 404 488 ��8 464 5�8 5�0 58� ��9 �6� ��8 ��6
Exclusive prospecting licences awarded �4 �4 5� ��� ��8 9� �55 �60 �0 �� �5 96
Claims registered �40 �95 �58 �4 85 ��6 �4� �06 ��� �4� �6� �9�
Mining licences granted � � � 9 4 8 5 4 8 �� � �
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Annex �: Chamber members and committees
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Class A Founder MembersNamdeb.Diamond.Corporation.(Pty).Ltd. I.Zaamwani. C.SivertsenOngopolo.Mining.and.Processing.Ltd. R.Webster. H.NolteRössing.Uranium.Ltd. M.Leech. R.Hoveka
Class A MembersAngloGold.Ashanti. G.Arnat. A.J.StadlerDe.Beers.Marine.Namibia. O.Shikongo. S.SchneiderOkorusu.Fluorspar.(Pty).Ltd. M.T.Dawe. R.GeversSkorpion.Zinc.Mining. G.Boting.. L.WilliamsonRosh.Pinah.Zinc.Corporation.(Pty).Ltd. C.Aspeling. H.FourieLanger.Heinrich.Uranium.(Pty).Ltd. W.Buck. G.Halliday
Class B MembersSalt.&.Chemicals.(Pty).Ltd. R.E.Stanton. S.AndersonSakawe.Mining.Corporation. K.Kapwanga. E.Nefussy
Class C MembersDiamond.Fields.(Namibia).Ltd. I.K.Kaundje. R.J.DanielSalt.Company.(Pty).Ltd. J.Klein.Jnr. J.Klein.SnrTrans.Hex.Group. C.NeethlingStorm.Diamonds. B.S.Moore. G.Hemming
Class D MembersAmbase.Exploration.Namibia.Ltd. S.Gaike. M.SchaeferAvmin.Namibia.(Pty).Ltd. P.A.Lombard. A.H.MatthewsBafex.Exploration. S.Smith. C.MackenzieBHP.Billiton. J.Twidale. J.ParianosKumba.Resources. S.Clague. E.MoutonMount.Burgess.Gold. N.Forrester. J.MooreOnganja.Mining.Company.(Pty).Ltd. R.G.Carr. E.A.BarbourPE.Minerals. C.Wium. E.MbeehiRio.Tinto.Namibia.(Pty).Ltd. K.M.Sims. N.SelibasRoburgh.Exploration. J.J.MyburghSavanna.Marble.cc. J.Hoffman3M.South.Africa. C.KadingTeck.Cominco.(Namibia).Ltd. S.Jennings. D.NewmanWestport.Resources.(Namibia).(Pty).Ltd. R.Bonner. D.ParnhamHallie Investment No.14 (Pty) Ltd S V Bromfield A GhiginiWest.Africa.Gold.Exploration.(Namibia).(Pty).Ltd. K.Webb. J.JoubertBannerman.Mining.Resources.Namibia. P.Batten. O.KrappmanBonaparte.Diamond.Mines.NL. M.Woodborne. J.Midgley
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Associate MembersAfrican.Portland.Industrial.Holdings.Ltd. J.Muller. M.LiefferinkAfrican.Explosives.Ltd. F.Botha. M.BenningAfrican.Labour.Services. R.C.de.Villiers. J.A.BothaAfrican.Wire.Ropes.(Pty).Ltd. S.Bredenkamp. E.HeymannA..Speiser.Environmental.Consultants.cc. A.SpeiserBarloworld.Namibia.(Pty).Ltd. J.QuarmbyBrazil.Benguela.Exploration.&.Finance. H.C.BeneckeDTC.Valuations.Namibia.(Pty).Ltd. K.T.Goodrem. C.F.DoneganEckhart.Freyer.Geologist. E.FreyerEvi.Mining.Company. I.Namaseb. S.AipingeGeomac.Consulting.cc. A.E.MacuveleKuehne.&.Nagel.(Pty).Ltd. L.O.Nees. F.CyriaxL.van.Schalkwyk. L.van.Schalkwyk. I.D.KotzeManica.Group.Namibia. H.W.Timke. K.H.WokerMega.Tech.(Pty).Ltd. H.Pupkewitz. W.WesselsNamGem.Diamond.Manufacturing. E.HawalaNamibian.Ports.Authority. S.Kankondi. K.van.HeerdenNEC.Investment.Holdings.(Pty).Ltd. A.Bruckner. N.BrucknerNOSA.Namibia. C.de.Lange. E.GroblerPalfi, Holman & Associates A G Palfi R WarthaRex.Quip.cc. A.Lang. C.LangRubicon.Security.cc. B.Nel. J.KastelicSelected.Hardware. H.D.Etzold. D.EtzoldSiemens.(Pty).Ltd. G.Langmaak. V.TrubenbachStone.Africa.. A.E.MacuveleSynergistics.Environ.Services. K.FairleyTrust.&.Mining.Company.(Pty).Ltd. D.O.N.Mathews. P.MathewsNamibian.Institute.of.Mining.and.Technology. E.D.G.Müller. G.Fassbender
Honorary Life MembersD.O.N.MathewsHonourable.A.Toivo.ya.Toivo
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Summary. 2000 2001 2002 2003 2004 2005 2006Class.A.founder.members. 3. 3. 3. 3. 3. 3. 3Class.A.members. 3. 2. 2. 3. 5. 5. 6Class.B.members. 4. 4. 4. 4. 2. 2. 2Class.C.members. 4. 9. 6. 5. 4. 4. 4Class.D.members. 24. 15. 14. 14. 15. 15. 18Associate.members. 26. 28. 30. 33. 28. 29. 28Honorary.life.members. 3. 3. 3. 3. 2. 2. 2Total 67 64 62 65 59 60 63
Council of the Chamber of MinesM.Dawe.(President). Okorusu.Fluorspar.(Pty).Ltd.O.Shikongo(1st.Vice-President). De.Beers.Marine.NamibiaD.Garbers.(2nd.Vice-President). Rosh.Pinah.Zinc.Corporation.(Pty).Ltd.I.Zaamwani. Namdeb.Diamond.Corporation.(Pty).Ltd.C.Sivertsen. Namdeb.Diamond.Corporation.(Pty).Ltd.M.Leech. Rössing.Uranium.Ltd.G.Boting. Skorpion.Zinc.Corporation.(Pty).Ltd.R.Webster. Ongopolo.Mining.and.Processing.Ltd.H.Nolte. Ongopolo.Mining.and.Processing.Ltd.G.Arnat. AngloGold.Ashanti.K.Kapwanga. Sakawe.Mining.CorporationW.Buck. Langer.Heinrich.Uranium.(Pty).Ltd..R.Stanton. Salt.&.Chemicals.(Pty).LtdD.Newman. Exploration.&.Environment.CommitteeE.Mueller. Namibia.Institute.of.Mining.and.TechnologyV.Malango.(Secretary). Chamber.of.Mines
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Exploration and Environment CommitteeD.Newman.(Chair). Teck.ComincoL.Apollus. Debmarine.NamibiaB.Burrell. NamdebE.Freyer. Eckhart.Freyer.-.GeologistC.Neethling. Trans.Hex.GroupS.Clague. Kumba.ResourcesA.Goosen. NamdebS.Jennings. Teck.ComincoP.A.Lombard. Avmin.NamibiaA G Palfi Palfi, Holman & AssociatesV.Petzel. Geological.Survey.(MME)B.Roesener. AngloGold.Ashanti.-.NavachabDr.G.Schneider. Geological.Survey.(MME)A.Speiser. Alexandra.Speiser.Environmental.Consultants.ccI.K.Kaundje. Diamond.Fields.NamibiaE.Shivolo. Ministry.of.Mines.and.EnergyA.E.Macuvele. Geomac.Consulting.ccS.Smith. Bafex.ExplorationR.Bonner. Westport.ResourcesJ.Twidale. BHP.Billiton
Labour CommitteeI.Djiuella.(Chair). Okorusu.FluorsparS.Nekundi. De.Beers.Marine.NamibiaL.Gwala. De.Beers.Marine.NamibiaN.Negongo. NamdebC.Hoveka. Rössing.UraniumE.Kandanga. Rössing.UraniumA.N.Katamba. Rössing.UraniumH.Ipinge. OngopoloR Frank Walvis Bay Salt RefinersK.M.J.Loubser. Skorpion.ZincJ.Namupala. Skorpion.Zinc.K..Kaulinge. Rosh.Pinah.Zinc.CorporationA.Taillard. Anglogold.Ashanti.-.Navachab
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Safety CommitteeR.Gevers.(Chair). OkorusuJ.Tsauseb. Skorpion.Zinc.E.Botha. De.Beers.Marine.NamibiaE.Farmer. AngloGold.Ashanti.-.NavachabM.Viviers. Namdeb.G.Dowie. Sakawe.Mining.CorporationJ.Kastelic. Ongopolo.Mining.and.ProcessingC.Neethling. Trans.Hex.GroupS.Smit. Trans.Hex.GroupI.Isaaks. Rössing.UraniumD.van.Tonder. Salt.&.ChemicalsB.Viljoen. Rosh.Pinah.Zinc.CorporationD.Mouton. Langer.HeinrichJ.Hengari. Mineworkers.Union.of.NamibiaC.De.Lange. NOSA.NamibiaM.Amunghete. Chief.Inspector.of.Mines,.MMEDr.Nkandi-Shiimi. Ministry.of.Health.and.Social.Services
Mine Surveying CommitteeD.Hull.(Chair). ConsultantD.Bansemer. De.Beers.marine.NamibiaT.Botha. AngloGold.Ashanti.-.NavachabA.Goosen. NamdebR.N.Isaaks. Ministry.of.Mines.and.EnergyD.Mathews. Rössing.UraniumP.van.der.Merwe. Rosh.Pinah.Zinc.Corporation
Mine Rehabilitation & Closure CommitteeRainer.Schneeweiss.(Chair). Rössing.UraniumRichard.Gevers. Okorusu.FloursparConnie.Claassen. De.Beers.Marine.NamibiaFiona.Olivier. De.Beers.Marine.NamibiaDr.Lima.Maartens. Westport.ResourcesDr.Antje.Burke.. NamdebDavid.Mouton. Langer.HeinrichRalf.Schommarz. NavachabUwe.Rentel. Navachab
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Grant.Rau.. Sakawe.Mining.CorporationLionel.J.Howes.. Sakawe.Mining.CorporationCorrie.Botha. Skorpion.ZincVazembua.Muharukua. Salt.&.ChemicalsBarra.Viljoen. Rosh.PinahStill.to.be.appointed. Ongopolo1
Florence.Sibanda. Ministry.of.Mines.&.EnergyLisa.Kawali. Ministry.of.Mines.&.EnergyK.K.Mhopjeni. Ministry.of.Mines.&.EnergyTeofilus Nghitila Ministry of Environ. & TourismDr.Freddy.Sikabongo. Ministry.of.Environ..&.TourismJ.Alexandra.Speiser. AS.Environmental.Consultants.cc
Mining Cooperation CouncilM.T.Dawe. Chamber.of.Mines.of.NamibiaV.Malango. Chamber.of.Mines.of.NamibiaB.Shinguadja. Ministry.of.LabourU.Hiveluah. Ministry.of.LabourJ.Hengari. Mineworkers.Union.of.NamibiaA.Eiseb. Mineworkers.Union.of.NamibiaJ.Iita. Ministry.of.Mines.and.EnergyE.Shivolo. Ministry.of.Mines.and.Energy
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Summary.of.Proposed.Empowerment.Assessment.and.Evaluation.Scheme.for.the.Namibian.
mining.industry:
1) Ownership
. a). Companies.to.submit.current.ownership.details
. b).. Submission.to.be.made.as.to.proposed.empowerment.initiatives.with.time-frames,..
. . including.equity.participation,.joint.ventures,.share.placements/issues,.employee.trusts
. c).. Companies.to.submit,.on.an.annual.basis,.reports.as.to.changes.in.ownership.and..
. . implementation.of.ownership.empowerment.initiatives
2) Employee literacy/numeracy standards
. a).. Companies.to.provide.base.level.statistics.of.employee.standards
. b).. Companies.to.provide.a.synopsis.of.the.type(s).of.programme(s).to.be.implemented
. c). Companies.to.submit,.on.an.annual.basis,.numbers.of.participants.and.success.rates.
3) Education and Training
. a). Companies.to.prepare.a.report.containing.base.input.statistics;.ie.current.statistics.and..
. . contributions/programmes,.including.primary,.secondary.and.tertiary.education,.technical..
. . and.skills.development.courses,.and.ancillary.support.and.assistance.activities
. b). Companies.to.submit.plans.for.development.and/or.expansion.programmes
. c). Companies.to.submit.annual.progression.reports.including.numbers.of.participants..
(employees, dependents, external beneficiaries), costs and disciplines and any additional
unspecified (ad hoc).support.and.assistance...
4) Employment Practices
a) Companies to submit a base-line report covering the range of employee benefits currently .
. . in.place;.plus.a.separate.base-line.report.covering.current.policies.and.strategies.
. . regarding.HIV/AIDS.prevention.and.treatment
. b). Companies.to.submit.plans.and.programmes,.including.envisaged.consultation.forums.with..
. . immediate.stakeholders,.regarding.social.development.initiatives,.eg.housing.and.amenities
. c). Companies.to.submit.future.plans,.programmes.and.strategies.to.address.the.HIV/AIDS.
. . pandemic
. d). Companies.to.submit,.on.an.annual.basis,.reports,.with.statistics,.regarding.. .
improvements to employee benefits, achievements in social development, and HIV/AIDS
. . initiatives
5) Community Development
. a). Companies.to.submit.a.base-line.report.covering.the.status.of.the.immediate.community..
or other identified community supported by the individual company
. b). Companies.to.prepare.a.plan.of.action.and/or.relevant.development.programme(s)..
. . including. establishment.of.consultation.forums.with.the.relevant.stakeholders..
. . (communities).and.possible.“out-sourcing”.activities
. c). Companies.to.submit,.on.an.annual.basis,.progress.reports.including.activities.. .
undertaken, persons benefitted and empowerment/out-sourcing/sub-contracting
. . developments
Annex �: Chamber empowerment strategy
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6) Procurement
. a). Companies.to.submit.a.listing.of.current.suppliers/service.providers.stating.(where..
possible) the category of ownership by the designated groups as specified in the .
Affirmative Action Act and value of goods/services purchased :
. . owned:.>.50%.by.Namibian.designated.groups.
. . empowered:.>.25%.but.below.50%.by.Namibian.designated.groups.
influenced: > 5% but below 25% by Namibian designated groups
. b).. Companies.to.submit.a.report.specifying.the.composition.of.its.individual.procurement.
. . evaluation.committee.or.composition.of.the.group.committee
. c). Companies.to.submit,.on.an.annual.basis,.a.report.containing.changes.in.suppliers./.
. . service.providers.in.terms.of.ownership.and.value.of.goods.and.services.purchased
7) Beneficiation
a) Companies to submit a base-line analysis of current products and level of beneficiation
b) Companies to prepare a report as to factors/reasons precluding further beneficiation of
. . existing.products
c) Companies to submit plans and programmes for beneficiation initiatives including time .
. . frame,.costs,.job.opportunities,.technology
. d). Companies.to.submit,.on.an.annual.basis,.progress.reports.citing.achievements.as..
. . compared. to.targets
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Ministry of Mines and Energy
Mines.and.Energy.Building1.Aviation.RoadPrivate.Bag.13297WindhoekNamibia
Minister: Honourable Erkki NghimtinaDeputy Minister: Honourable Henock ya Kasita
Tel:.+264.61.284.8111Fax:.+264.61.284.8363
Permanent Secretary: Mr Joseph S Iita
Tel:.+264.61.284.8312Fax:.+264.220386Email:[email protected]
Directorate: Diamond Affairs
Diamond.Commissioner:.Mr.Kennedy.HamutenyaTel:.+264.61.284.8320Fax:.+264.61.238643Email:[email protected]
Directorate: Mines
Acting.Director.of.Mines:.Mr.Ramon.Tiongco:[email protected]:.Mr.Erasmus.Shivolo:[email protected]:.Mr.Matthews.Amunghete:[email protected]:.+264.61.284.8247Fax:.+264.61.238643
Directorate: Geological Survey of Namibia
Director:.Dr.Gabrielle.SchneiderTel:.+264.61.208.5205Fax:.+264.61.238643Email:[email protected]
Website:.www.gsn.gov.na
References
Honourable Erkki Nghimtina, Minister of Mines and Energy
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For information on government mining policy and legislation:
www.mme.gov.na
Minerals.Act.1992.(Act.Number.33.of.1992)
Minerals.Development.Fund.of.Namibia.Act.1996.(Act.Number.19.of.1996)
Diamond.Act.1999.(Act.Number.13.of.1999)
Minerals.Policy.of.Namibia.2003.(Ministry.of.Mines.and.Energy)
Chamber of Mines of Namibia
President:.Mr.Mark.Dawe
Vice-presidents:.Mr.Deon.Garbers,.Mr.Otto.Shikongo
General.Manager:.Mr.Veston.Malango
OHEAP.Coordinator:.Mrs.Theo.Machoko
Chamber.of.Mines.of.Namibia
PO.Box.2895
4th.Floor.Channel.Life.Building
Windhoek
Namibia
Tel:.+264.61.237.925
Fax:.+264.61.222.638
Email:[email protected]
Website:.www.chamberofmines.org.na
Key documents and websites
National.Accounts.1995-2005,.Central.Bureau.of.Statistics,.National.Planning.Commission
Bank.of.Namibia.annual.and.quarterly.reports
Estimates.of.Revenue.and.Expenditure.2006/07,.Ministry.of.Finance
Navachab:.www.anglogoldashanti.com.(JSE.code.ANANO,.NYSE.code.AU)
Diamond Fields: www.diamondfields.com (TSX code DFI)
Namdeb:.www.namdeb.com.and.Namdeb.Annual.Review.2005
Okorusu: www.solvay.com or www.solvayfluor.com (Euronext code SOLB)
Ongopolo:.www.weatherlyplc.com
Paladin:.www.paladinresources.com.au
Rosh.Pinah:.www.kumbaresources.com.(JSE.code.KMB)
Rössing:.www.Rössing.com.and.Rössing’s.2005.Report.to.Stakeholders.(LSE.code.RIO)
Skorpion:.www.angloamerican.co.uk.(LSE.code.AAL,.JSE.code.ANAAL,.NSX.code.ANM)
Trans.Hex:.www.transhex.co.za.(JSE.code.TSX,.NSX.code.THX)
Walvis.Bay.Salt:.www.ncp.co.za
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Notes
