Namibia’s mining and quarrying sector recorded a sharp 10% drop in producer prices during the first quarter of 2025, one of the steepest quarterly declines in recent years, according to new data from the Namibia Statistics Agency (NSA).
The sector’s Producer Price Index (PPI) fell from 102.4 to 92.2 basis points quarter-on-quarter, with the NSA citing significant declines in the prices of salt, uranium, diamonds and zinc as the main contributors.
“The main contributors were substantial price drops in salt (-30.7%), uranium (-19.5%), diamonds (-10.8%) and zinc (-2.9%),” the agency stated.
On a year-on-year basis, the index was down 4.0%, having stood at 96.1 basis points in the first quarter of 2024.
Gold was the exception in an otherwise weak performance for the sector, with prices rising by 44.9% year-on-year. The strong showing in gold prices helped cushion the broader decline in mineral prices, which have come under pressure amid subdued international demand and increased price volatility.
The downturn in mining prices had a broader impact on the national economy, contributing to a 1.2% decline in the overall national PPI for the quarter. The NSA noted that this reflects the weight the mining sector carries in shaping Namibia’s industrial price trends.
Commenting on the outlook for gold, Simonis Storm Junior Equity Analyst Kara van den Heever said the metal had seen volatility in 2025, but remained on an upward trend.
“After rallying to record highs early in the year, surpassing the US$3,400/oz level, prices moderated somewhat but have remained elevated, averaging around US$3,200–US$3,300/oz through midyear,” she said.
Van den Heever added that several factors had supported gold’s performance. “Persistent geopolitical tensions have sustained investor demand for safe-haven assets. Gold’s non-yielding nature has proven particularly attractive in periods of risk aversion and global uncertainty,” she said.
Meanwhile, Debmarine Namibia plans to cut its diamond production by 5% in 2025, targeting 1.5 million carats, as the global diamond industry continues to grapple with falling demand. This follows a 13% reduction in output from 2023 to 2024, when the company produced 1.625 million carats.
The ongoing downturn in diamond demand is adding further strain to Namibia’s export-oriented mining sector, already feeling the effects of weak commodity markets.
