Mining companies bleeding losses

01 June 2018
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. 


The Windhoek Observer is an English-language weekly newspaper, published in Namibia by Paragon Investment Holding. It is the country's oldest and largest circulating weekly.

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