Choose Your Language Of Preference Below 

French Version German Version Russian Version Spanish Version 

By Chamwe Kaira

Nov. 7 (Bloomberg) — Namibia plans to amend legislation to provide for royalties on all minerals mined in the southern African country, Mines and Energy Minister Erkki Nghimtina said.

Currently royalties are paid only on Namibia’s main exports of diamonds, uranium copper and zinc.

“Once the amendment is in effect, it will bring an end to the sale and export of Namibia’s mineral resources without royalties having been paid to the state,” Nghimtina said in an e-mailed statement from the capital, Windhoek, today.

The amendment follows extensive research on mining royalties operating in other countries, he said. It will also allow the minister to impose a windfall levy when mine profits increase significantly because of favorable economic conditions, Nghimtina said.

Namibia, Africa’s second-largest uranium producer after Niger, increased revenue from mining by 14 percent last year to 13.8 billion Namibian dollars ($1.4 billion), the Chamber of Mines of Namibia said June 2. The southern African country also produces the world’s best-quality diamonds, many of which are sold by De Beers, the world’s largest producer of the gems.

To contact the reporter on this story: Chamwe Kaira in Windhoek via Johannesburg at abolleurs@bloomberg.net.

Source: Bloomberg News

Advertisements