Mining is
the largest contributor to the Namibian economy. 25% of the countries income is
generated through the mining of diamonds, uranium, copper, gold, lead, tin,
lithium, cadmium, zinc, salt and vanadium. Non-diamond mining generated N$13.82
billion and diamond mining generated N$11.46 billion total revenue last year.
The
government charges a royalty based on the market value of the metals and
minerals being mined. The royalty is 3% for precious metals and nonnuclear minerals
and 2% for industrial and nuclear minerals. While this generates substantial income,
there was a concern that Namibia was selling its mineral resources but not
having that revenue stay in country. To that end, the Epangelo Mining Company
was established in 2008 with the government of Namibia as the sole shareholder.
Epangelo Mining Company ensures Namibia participates in the beneficiation of
the country’s mineral resources.
Mining in
Namibia is limited by water, fuel, and electric power. Mining uses a lot of
water, which is difficult given Namibia is prone to water scarcity. Some
uranium mining centers uses desalination to meet the extensive water demands. To
increase electricity availability, the government is looking towards extracting
natural gas, building dams for hydroelectric power, or introducing nuclear
power plants.
In my
previous blog post, I mentioned the dangers that come with so much of Namibia’s
economy being based on mining. Economies that rely heavily on only a few
industries are more susceptible to economic downturns: what happens after all
the mineral resources are extracted or the cost of extraction becomes higher
than their market value? However mineral extraction is the clearest path for
Namibia to generate substantial revenue. I believe a reoccurring question we
will continue to try to address while in Namibia is how should the country
balance short term (potentially destructive) mining activities with long term
economic growth and stability?
-Christina
http://www.world-nuclear-news.org/C-Areva_water_plant_to_supply_Namibian_mines-1908134.html
Do you see Namibia having minerals to continue mining long into the future?
ReplyDeleteI think another implication we have to consider is exploiting these mining resources at the expense of the environment and the tribes who take up this space.
ReplyDelete-Mark Buckup
I wonder whether mining will decrease as use of solar increases. -ellie chen
ReplyDelete