Saturday, October 27, 2018

Namibian Government Scraps Black Ownership Rule For Mining Exploration Licenses

The President is on move to restrategize Mining Industry and review exploration licenses.
Namibia government has scrapped a requirement for companies seeking mining exploration licences to be partly owned and managed by black Namibians. The Mines and Energy Minister Tom Alweendo revealed this on Friday.
Namibian mining
Diamond mine facilities in Oranjemund, Namibia.
The Namibian government started giving preferential treatment to black-owned companies in 2006, but eventually, that was not deemed enough.

The government then announced in 2015 that it had introduced additional conditions on mineral licenses holders to reserve a minimum of 5% participation in all licenses to Namibians and 20% of previously disadvantaged Namibians to be part of management structures of the mining industry, through what we called Black Economic Empowerment (BEE) to push indigenous people and accelerate their entrepreneurship in some of the country’s most lucrative business projects, but critics said it threatened the diamond and uranium producer’s ability to attract investment.

Viewing this decision made by lawmakers in the contrast that the BEE in its manifestation has failed to redress inequalities; but rather accelerate corruption and benefited only a few wealthy Namibians who are politically well connected and favoured on the expenses of the masses. Comrade Hilifa Mbako, the chamber’s vice president, said the decision “was the most important fundamental decision for future investment into Namibia.'' Mbako said the requirements and uncertainties created by the planned New Equitable Economic Empowerment Framework (NEEEF), a regulation intended to force white-owned businesses to sell 25 per cent stake to blacks, had hit investor confidence in Namibia.
Our objective is to grow the mining sector where it can continue to meaningfully contribute to our socio-economic development. This can only happen when more minerals are discovered and it is important that we make the progress of mineral discovery as effective as possible.
The Namibia Statistics Agency said the mining sector contributed 125 to Namibia's gross domestic product (GDP) in 2017. The sector employed around 16,900 people last year, or 2.5% of the workforce.



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