Although the mining industry performed fairly well in 2017, some of the 24 operating companies that are members of the Chamber of Mines of Namibia made huge losses,
reflecting a tough economic environment, the 2017 Annual Report of the Chamber of Mines has revealed.
According to the report, Areva Resources Namibia made a N$274 million loss, as no exploration activities occurred in 2017, although the company’s Erongo Desalination Plant supplied 20 million cubic metres of water to the Erongo Region and recorded a turnover of N$358 million from water sales.
Areva’s Trekkopje uranium mine is currently under care and maintenance.
Dundee Precious Tsumeb, which recently announced an empowerment deal, made a loss of N$889 million in 2017 despite recording a N$1, 8 billion turnover in the period under review.
The Okanjande graphite mine near Otjiwarongo made a loss of N$32 million against a turnover of N$20 million.
The Langer Heinrich Uranium mine, which recently announced that it was going to go under care and maintenance, made a N$876 million loss against a turnover of N$1 billion.
The Navachab gold mine made a loss of N$111 million against a turnover of N$976 million.
Weatherly Mining Namibia, which operates the Tschudi opencast copper mine near Tsumeb made a N$67 million loss against a turnover of N$1,1 billion, after production was affected by slower leaching of the sulphide ore in the first quarter of 2017.
The Salt Company in Swakopmund, which produces salt for export, made a loss of N$2.3 million against a turnover of N$56 million.
Overall, the mining industry’s fixed investment increased from N$3.46 billion in 2016 to N$5.73 billion in 2017, posting strong growth compared to a contraction recorded in 2016, largely fuelled by improving commodity prices.
Chamber statistics show that members paid out N$3, 6 billion in corporate taxes and royalties, and N$113 million in export levies in 2017, with government also receiving N$817 million as PAYE.