Namibia’s Ministry of Mines and Energy disclosed April 1st, 2021 townies must own 15% venture in new Applications for Mining Licenses

By Abdul Rahman Bangura–

Photo Credit: Mining

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone– The scheme to localize the possession of Namibian mining licenses discerns them culmination 2020 of an assessment of the Mining Act which encompasses prospecting and mining activities.

The ministry declared openly in a press release that all “applications by Namibian nationals for the transfer, cessation, assignment of mineral licenses to foreign companies or persons may be granted provided 15% interest in the company to retained locally”.

Namibia is a household to many corporations committed in research and actual mining. Very few of these companies have Namibian owners. In some cases where Namibians had holding, they ended up selling their interest to multinational corporations.

Andreas Simon, the ministry’s spokesperson, however, said this would no longer be the case.

“The transfer, cessation, assignment of mineral licenses by Namibians to foreign companies/persons will end after 1 April 2021,” he said on his social post.

“The Mines and Energy Ministry and the general public have been advocating local ownership and participation in the mining sector – by granting exclusive prospecting licenses to indigenous people, in the hope of curing the absence of local ownership,” the ministry asserted.

In furtherance, most Namibians, after amassing mineral rights, engage in the wholesale transfer of mineral clearances to foreign entities or persons without pursuing on maintaining local ownership. Recent economic viewpoint by the Bank of Namibia foresees that the mining and quarrying industries will record a 5.4% development this year – after enduring a recession of 17% in 2020 and in 2019. Most of this improvement is anticipated to arrive from diamond production, but uranium is still predicted to post negative growth in 2021.

The Ministry alike, endorsed the hiatus on accepting and processing new applications for retail and wholesale petroleum licenses has now been lifted. The suspension took effect mid last year and was lifted at the beginning of March, 2021. According to the ministry, the suspense mid-last year was to allow the ministry to review and update the guidelines and requirements for petroleum downstream licenses.

“The organization was aimed at addressing the flaws in the downstream petroleum licensing system,” said Simon.
The ministry also said the Directorate of Petroleum Affairs was concerned about the ‘mushrooming’ of filling stations, particularly in areas with existing outlets.

“The other issue was the great number of idle wholesale licenses. These challenges were mainly because of the relief of attaining such licenses,” the spokesperson told. During the review the ministry restored the procedures and enabled authorizing stakeholders to apply for licenses.

For New Africa Business News (NABN) Abdul Rahman Bangura Reports,  Africa Correspondent