1.Mining Industry Performance during 2011 & Role of Mining in the Namibian economy- Robin...

7/31/2019 1.Mining Industry Performance during 2011 & Role of Mining in the Namibian economy- Robin Sherbourne.pdf

1/18


2/18


3/18

Key Events Since Mining Expo 2011

Ohorongo Angola import ban and application for IIP MoF tax proposals in July

OPM policy announcement on New Equitable Economic Empowerment

Framework (NEEEF) in October

Environmental regulations under Environmental Management Act 2007

passed and Environmental Commissioner appointed Epangelo deals with NRE, Bannerman and Extract

Joint GRN-CMN Tax and Value Addition Committees


4/18

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1990 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

Mining Value Added in Current Prices (N$m)

Other mining

Diamond mining

Source: National accounts, Central Bureau of Statistics


5/18

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

1990 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

Mining Value Added as Percentage of GDP

Other mining

Diamond mining



6/18

0%

1%

2%

3%

4%

5%

6%

7%

8%

1990 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

Mining Fixed Investment as Percentage of GDP (includes exploration expenditure)


3.1%

5.1%


7/18

7

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

Fixed Investment (N$m)

Government Mining Source: CBS


8/18


9/18

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

'93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

Mining Exports (N$m)

SHG zinc

Other minerals

Blister copper

Metal ores (including uranium)

Rough diamonds



10/18


11/18

- 500 1,000 1,500 2,000 2,500 3,000

AREVA

DBMN

NamdebLanger Heinrich

Navachab

NCS

Ohorongo

Okorusu

Rosh Pinah

Rossing Uranium

Salt & ChemicalsSalt Company

Samicor

Skorpion

Weatherly Mining

Auryx Gold

Bannerman

Craton

Gecko

Otjozondu

Reptile Uranium

Rio Tinto

Swakop Uranium

Valencia

NIMT

Employment in Mining Sector at end 2011

Total employment more than 14,000

( as big as fishing and SOEs)


12/18

Key Numbers for Mining Sector in 2011

Turnover > N$15.8bn

Profits > N$1.7bn

Wages and salaries > N$2.5bn

Fixed investment > N$1.3bn

Exploration spending by operating mines > N$404m

Exploration spending by exploration companies > N$348m (AuryxN$91m, Bannerman N$60m, Reptile N$78m, Extract N$49m)

Profits tax paid > N$884m

Mineral royalties paid > N$867m

7,034 permanent employees, 590 temporary employees, and 6,190contractors

Rssing Uranium made loss of N$471m in 2011 (royalty 6%)


13/18

0

1,000

2,000

3,000

4,000

5,000

6,000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Uranium Production (tonnes)

Langer Heinrich

Rossing

Source: Rio Tinto, Paladin Energy


14/18

19,451

9,145

5,983

4,351

3,258

2,993

2,500

1,537

0 5,000 10,000 15,000 20,000 25,000

Kazakhstan

Canada

Australia

Niger

Namibia

Russia

Uzbekistan

United States

Uranium Producing Countries* (tonnes of contained U mined in 2011)

Source: World Nuclear Association *only includes countries producing more than 1,000t


15/18


16/18

16


17/18

Conclusions

Mining sector emerged well from crisis with most

main projects intact (uranium delicately poised) Easily most dynamic sector of economy investing

more than any other sector

Attracting full spectrum of international investors

Junior miners and stock exchanges playing criticalrole

Investors highly sensitive to Namibian policypronouncements

Mining to face new taxes, environmentalregulations, NEEEF, NT Levy, power and watercosts


18/18

Robin Sherbourne

Namibian Economics

[email protected]

PO Box 86058

Windhoek

Namibia
mailto:[email protected]:[email protected]

1.Mining Industry Performance during 2011 & Role of Mining in the Namibian economy- Robin...

Documents

Transcript of 1.Mining Industry Performance during 2011 & Role of Mining in the Namibian economy- Robin...