Small-scale miners in the country feel neglected by the government, with the Ministry of Mines and Energy criticised for not providing the necessary support that contributes to their growth, according to a parliamentary report.
The parliamentary report on Natural Resources, Economics and Public Administration highlighted the critical need for state funding to support small-scale miners in Namibia.
The report emphasises the capital-intensive nature of mining and the extended timelines for profitability, making government assistance crucial for their participation in the industry.
“State participation is very important in terms of funding to assist small-scale miners to participate in the industry. This is because mining is capital-intensive and takes too long for them to start paying dividends or making a profit,” the parliamentary report revealed.
The report further highlighted that small-scale miners are facing challenges with the valuation of their products and commodities, to which the Members of Parliament (MPs) implored the Ministry to assist with technologies and the use of certified laboratories, which is vital.
The Ministry has a laboratory for testing minerals, but it is not up to international standards and therefore not accredited or not recognised by international investors.
However, the Committee took cognisance that the establishment of an accredited lab has been in the plan of the Ministry of Mines and Energy but failed to take off due to a lack of funds.
“The lab must be part of public service delivery to the nation and not be left in the hands of the private sector. However, the private association may also initiate the establishment of an accredited lab,” the report said.
It is also reported that in 2021, application fees for exploration and mining rights were raised from N$50 to N$250, marking the first increase since 1994. However, this jump in cost has been criticised for making such licences unaffordable for small-scale miners.
“Due to the centralised approach of Ministry of Mines and Energy activities in Windhoek, small-scale miners face challenges and high costs when applying for licences. Travel expenses and increased licence fees have made it unaffordable for them,” the report stated.
“Even though we take note that calculations were made based on inflation and other factors that transpired over the years, and also that the cost of these services has increased but the quality of services has not improved, these fees need to be reviewed to accommodate more Namibians who may not be able to afford these fees.”
Obtaining an Environmental Clearance Certificate was also cited as being cumbersome due to the longevity of processing and being unaffordable for small-scale miners.
It is also established that the Ministry of Mines and Energy provides no support to improve the health and safety of small-scale miners, nor are they approached to give input on mining laws and regulations.
“In addition, financial institutions are not coming forward to finance small-scale miners. The Development Bank of Namibia (DBN) does not finance mining exploration but only funds mining operations and local shareholding in the mining companies. This is disadvantageous to the emerging local mining explorers. DBN must approach the small-scale miners to understand their needs and to consider a facility that will help Namibians participate in mining exploration.”
The Committees conducted an oversight consultative workshop with stakeholders in the mining and energy sectors.
The aim was to understand the governance, State shareholding, and state of the mining and energy sectors in Namibia, EPL instruments, value addition, community beneficiation, and related matters affecting the economy of Namibia. -miningandenergy.com.na
