Minister of Mines and Energy, Tom Alweendo, said while the mining industry accounts for 50 per cent of Namibia’s exports, there is a need for the industry to look towards building resilience in its value chains from suppliers to downstream customers.
Alweendo, who was speaking during a virtual mining expo and conference on Wednesday, said Section 50(d) of the Minerals Act stipulates that mining companies may only procure goods and services abroad if such goods or services are not available in Namibia.
He added that mining companies are still procuring from foreign companies, outside of the country, while local companies could potentially provide such goods and services.
According to the minister, the total value of goods and services procured by the mining sector during 2020 is about N.dollars 12.3 billion.
“Even though the figure looks good, there is still a difference between Namibian registered companies- foreign-owned and Namibian-owned companies. A significant portion of the local procurement amount still goes to foreign-owned Namibian registered companies, this gap needs to be breached,” said the minister.
The minister said the mining industry employs a workforce of 14 591 directly, making it very vulnerable to the COVID-19 pandemic, citing if companies failed to safeguard the workforce, it would mean a failure in the socio-economic development of the country.
However, the minister said compared to other industries, the mining industry came out mostly unscathed by the black swan event (COVID-19), adding that the ability of the mining industry to forge forward under difficult times is an indicator of a positive working relationship between the government and mining companies.
Alweendo further urged mining companies to be better connected to the needs of their host communities and society in a broader sense by instilling trust, ensuring safety and sustainability, unlocking innovation and ensuring progressive societal impacts.
“It is, therefore, crucial to adhere to environmental regulations and other regulations regarding land use. I assure you that the ministry will continue to strengthen the rules of engagement within the sector, with the aim of ensuring that investors are treated fairly and where problems are identified, solutions are found timelessly,” he said.
The two-day mining expo is organised by the Namibian Chamber of Mines, under the theme; ‘The Namibian Mining Industry’s Resilience and Growth Post COVID-19’.
Source: The Namibia Press Agency
