The Namibian government has collected N$5.96 billion in royalties from the country’s mining sector over the past three years, Deputy Prime Minister and Minister of Industrialisation, Mines and Energy, Natangwe Ithete has revealed.
“This underscores the importance of mine site inspections and mineral export permit verification and audits that the Department of Mines conducts to ensure that the government receives its correct share from the exploitation of its mineral resources,” Ithete said.
Currently, royalty rates in Namibia are set at 3% for base and rare metals, 2% for semi-precious stones, 3% for nuclear fuel minerals, and 2% for both industrial minerals and non-nuclear fuels. These royalties are levied on the market value of the extracted minerals.
Last year, the Chamber of Mines reported that the government collected N$6.86 billion in combined royalties and taxes from the mining sector, bolstered by a 17.6% increase in royalties.
In 2022, the industry paid N$2.154 billion in royalties to the government—a 33.7% increase compared to the previous year.
Ithete urged the Ministry to ensure “sustainable mining practices, fostering industrial development and value addition, and ensuring optimal use of Namibia’s natural resources, which supports economic growth and employment creation.”
The Parliamentary Standing Committees on Natural Resources and Economics and Public Administration reported last year that the government had earned N$8 billion in royalties from mining activities over the previous five years.
While there have been calls to increase the government’s stake in mining operations to enhance royalty revenues, Chamber of Mines President Zebra Kasete cautioned that such a move could hamper local projects.
