Namibia’s gold and zinc concentrate export earnings rose to N$5.8 billion in the first quarter of 2025, marking a 38.0% increase compared to the same period last year and a 4.4% rise from the previous quarter, the Bank of Namibia has reported.
The central bank attributed the growth to stronger international commodity prices and improved production volumes.
Gold export receipts grew by 30.2% year-on-year, bolstered by both rising prices and a production increase of 11.8% compared to the first quarter of 2024. Total gold production for the quarter reached 2,621 kilograms, although this represented a 5.4% decline from the previous quarter.
According to the bank, international gold prices averaged US$2,983 per ounce during the period under review — a 38.2% increase from the same period in 2024 and 7.5% higher than the previous quarter.
“The annual increase in the gold price was propelled by global financial market uncertainty as investors continued to capitalise on potential future price increases, portfolio diversification as well as wealth preservation,” the Bank of Namibia stated.
It further noted that ongoing safe haven demand, alongside increased gold purchases by central banks, contributed to the price surge.
Zinc concentrate exports also made a notable contribution to the country’s earnings. Production totalled 22,098 tonnes in the first quarter, reflecting a 27.4% rise from the same period in 2024. However, production was down 6.4% compared to the previous quarter, mainly due to the processing of lower-grade ore.
Despite the dip, earnings were supported by favourable global prices and logistical improvements that ensured more reliable delivery of the concentrate.
“Zinc production rose in line with the company’s objective of doubling production by 2026 with the expansion of the mine. Export proceeds were further supported by the improved availability of shipping vessels, which ensured faster and more consistent delivery of concentrate,” the bank noted.
The central bank added that these logistical improvements helped sustain revenue levels despite the marginal production decline.
Zinc prices averaged US$2,836 per metric ton in the first quarter, up 16.0% year-on-year but 7.0% lower than the preceding quarter. However, the Bank of Namibia cautioned that the upward trend in prices might not continue due to anticipated increases in global supply.
“Zinc prices are expected to remain low in 2025 given an expected rise in supply with the recommissioning of mines in the DR Congo and Ireland,” the bank warned.
It added that global demand growth may be insufficient to absorb the added output, which could put downward pressure on prices and limit further growth in Namibia’s zinc export earnings.
