The Chamber of Mines of Namibia has noted the remarks made by the International Labour Organisation (ILO) Country Director during the recent public dialogue on the Promotion of Decent Work in the Mining Sector.

The Chamber supports constructive engagement on employment, transformation, inclusion and sustainability. However, several statements require correction and contextual clarification.

EMPLOYMENT CONTRIBUTION

The Chamber wishes to provide important context on key remarks by the ILO director regarding the mining industry’s contribution to job creation in Namibia.

It is correct that mining, by its capital-intensive nature and highly mechanised, is not a mass employer when compared to sectors such as agriculture or fishing. Mining operations require substantial investment in technology, infrastructure and specialised skills, which naturally limits direct employment relative to high output.

According to the 2023 Population and Housing Census – Labour Force Report, 14,337 individuals were employed in mining and quarrying in 2023, representing 2.6% of employed Namibians. This official figure reflects employment captured under the mining and quarrying category and most likely excludes contractor and services provider employment.

In contrast, Chamber member companies, whose figures include contractors engaged in mining operations,  reported:

• 18,189 direct jobs in 2023 (according to 2023 Chamber Annual Review), which represents 3% of employed Namibians (as per the 2023 Population and Housing Census –Labour Force Report),
• 20,843 direct jobs in 2024 (according to 2024 Chamber Annual Review), which represents 8% of employed Namibians (as per the 2023 Population and Housing Census –Labour Force Report).

These figures demonstrate that the sector’s direct employment footprint is larger than suggested and continues to grow. Additionally, according to the Chamber’s 2024 statistics, 97% of all permanent positions within the industry are occupied by Namibian citizens, underscoring the sector’s strong localisation of employment.

More importantly, evaluating mining solely on direct employment does not capture its full economic and indirect employment contribution.

Mining has one of the strongest multiplier effects in the Namibian economy. Through procurement of goods and services, including engineering, transport, logistics, manufacturing, catering, construction and professional services, the sector stimulates extensive employment across multiple value chains.

Using a conservative and widely accepted employment multiplier of 7, the mining industry generated:

• 127,323 indirect jobs in 2023, which constitutes 23.3% of employed Namibians (as per the 2023 Population and Housing Census –Labour Force Report),
• and 145,901 indirect jobs in 2024, which constitutes 26.7% of employed Namibians, (as per the 2023 Population and Housing Census –Labour Force Report).

Moreover, the sector is positioned for further employment growth. Since last year, several positive investment developments have taken place which are expected to generate additional jobs over and above the current 20,800 direct positions. These include the Bannerman transaction with CNNC, early works construction of the Tumas project, the desalination plant joint venture, Osino’s ongoing project development, and Sinomine’s commencement of construction on a new processing plant.

VALUE ADDITION AND BENEFICIATION

With regard to value addition and beneficiation in Namibia’s mining sector and its impact on job creation, the ILO representative stated:

“The sector has not transformed significantly from extraction and export of minerals in their raw materials to increased value addition and beneficiation that would create more jobs locally. Countries like Chile have implemented policies to enhance local employment through value-added processing and community engagement, resulting in a more diversified job market. Similarly, Canada has integrated Indigenous communities into mining operations, promoting inclusive employment practices.”

 Chamber Response

The assertion that Namibia exports minerals in raw form without value addition is incorrect. The mining industry undertakes significant value addition within the mining value chain, with most minerals processed to concentrate level before export.

Historically and currently, Namibia’s mining sector has undertaken meaningful value addition within the country. The Tschudi copper mine produces refined copper cathode, while the Skorpion operation produced special high-grade zinc metal for export markets before it was placed on care and maintenance.

The Sinomine Tsumeb Smelter previously produced blister copper from imported concentrates. However, Sinomine has since ceased blister copper operations at the smelter, and the facility is now being converted to process recycled metals.

These examples demonstrate that value addition and mineral processing form an integral part of Namibia’s mining value chain.

Value addition must be commercially viable and globally competitive. Factors such as market size, energy costs, water availability and costs, logistics, scale of deposits and international commodity pricing influence the extent of downstream processing.

The Chamber and the mining industry fully support Government’s development objectives to increase value addition within the mining value chain. However, such initiatives must be economically viable, globally competitive and capable of generating sustainable returns for both the nation and investors.

WOMEN IN MINING AND INCLUSION

The ILO representative noted that while Namibia’s policies are supportive of female representation, outcomes within the mining sector remain limited.

Chamber Response

With regard to gender representation, the Chamber acknowledges that mining remains male-dominated. However, member companies continue to implement deliberate programmes to improve female participation across technical, professional and leadership roles. Progress is being made, and gender inclusion remains a priority for the industry.

The industry recognises that inclusion, mentorship and structured development pipelines are essential for long-term gender parity.

LOCAL OWNERSHIP POLICY

The ILO representative stated that Government holds an official position with regard to local ownership policy and threshold as follows:

“Despite the mining industry committing to local procurement as a critical factor in the promotion of inclusive economic growth, a lot more still needs to be done to reach the 51% ownership policy target by Government and ensuring fair benefit sharing allowing the sector to move beyond raw material extraction to processing and manufacturing, creating more and better-paying jobs and retaining more economic value domestically.”

Chamber Response

The statement which asserts that the 51% ownership target is an official policy position held by Government is incorrect.

In a media release dated 15 December 2025, the National Planning Commission clarified Government’s position as follows:

“It is important to clarify that Government has not set a fixed threshold for local ownership and remains open to consultations with stakeholders to ensure a balanced, win-win outcome that promotes local empowerment without compromising profitability and returns on investment.”

The mining industry remains firmly committed to inclusive economic growth and broad-based empowerment. In this regard, the Chamber stands ready to engage Government through constructive and transparent consultation processes to develop policy frameworks that are balanced, predictable and mutually beneficial. Such an approach will ensure that investor confidence is preserved while maximising sustainable economic returns and long-term benefits for the Namibian people.

ENVIRONMENTAL IMPACT AND SUSTAINABILITY

The ILO representative states that mining contributes to environmental destruction and degradation, including habitat destruction, water contamination and pollution.

Chamber Response

Mining, by its nature, has environmental impacts that must be responsibly managed. However, the remarks omitted the extensive regulatory framework and rehabilitation measures in place.

Namibian mining operations operate under stringent environmental regulatory requirements, including comprehensive environmental management plans, mandatory environmental impact assessments and continuous compliance monitoring. These measures are designed to prevent, mitigate and manage environmental impacts, ensuring that mining activities are conducted responsibly and with due regard for ecological sustainability and community wellbeing.

Furthermore, the industry continues to implement progressive rehabilitation programmes aimed at mitigating environmental impacts and restoring mined areas responsibly, supported by comprehensive mine closure plans that are developed and funded throughout the life of operations. In alignment with global efforts to reduce carbon emissions and environmental footprints, mining companies in Namibia are increasingly integrating renewable energy solutions, including solar power, into their energy mix and adopting cleaner, more efficient technologies.

Sustainability considerations are now firmly embedded in operational planning and long-term investment decisions across the sector, reflecting a commitment to responsible resource development and environmental stewardship. 

Conclusion

The Chamber of Mines of Namibia welcomes robust and constructive dialogue on decent work, transformation, inclusion and sustainability within the mining sector. These are important national priorities that the industry takes seriously. However, public discourse must be grounded in accurate data, contextual understanding and recognition of the sector’s full economic contribution.

While mining is capital-intensive by nature, its direct and indirect employment footprint, value chain linkages, fiscal contribution and ongoing sustainability initiatives underscore its strategic importance to Namibia’s economy. The industry continues to invest in skills development, gender inclusion, responsible environmental management and commercially viable value addition.

The Chamber remains committed to working collaboratively with Government, labour, development partners and other stakeholders to strengthen policy certainty, enhance competitiveness and ensure that mining delivers sustainable and inclusive economic benefits for the Namibian people.