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Free carry shareholding in the spotlight

Announcement sends ripples through international stock exchanges
The Fraser Institute said the announcement contributed to Namibia's score in its annual Policy Perception Index for 2023 decreasing 20 points.
STAFF REPORTER
Namibia’s intention to introduce free carry shareholding, to be held by the state in Namibian mines, was introduced by mines and energy minister Tom Alweendo in parliament in March 2023, and reiterated before the Parliamentary Standing Committee on Natural Resources last June in Swakopmund.

The initial announcement sent ripples through international stock exchanges, where many Namibian mining endeavours are listed. More recently, the Fraser Institute said it contributed to Namibia’s score in its annual Policy Perception Index for 2023 decreasing 20 points from 87.22 in 2019 to 68, dropping Namibia from position 14 out of 76 jurisdictions, down to 33 out of 86.

According to mining commissioner Isabella Chirchir and her deputy Erasmus Shivolo, the suggestion is still in development, and discussions with the ministry of finance are ongoing. Shivolo made reference Epangelo, the government's mining enterprise, which enjoys preference for strategic mineral licences and holds 10% of the massive Husab uranium mine, and 7.5% of Navachab gold mine, among others.

Chamber of Mines of Namibia CEO Veston Malango said the policy proposal is on the table, and the chamber has been engaging the minister and the mining ministry since it was introduced. Further clarity is needed, he said, adding that the chamber is working on models to present to government, which will detail the consequences of a free carry policy for mines.

“We have highlighted that free carry is an additional cost. The final decision should be informed by well-researched models. The objective is obviously more benefits from the mineral resource coming to government. The question comes in: Will you have more with that scenario than what you are getting right now?"

Malango recently told parliament that in the last five years, the industry paid close to N$9.7 billion in royalties to government, export levies worth N$1.32 billion, dividends of N$3.4 billion and corporate tax of N$11.44 billion, all amounting to N$25.84 billion in government income.

“Our minister has proposed to us, and we have accepted, that these discussions must firstly be at a technical level, between the executive director of the ministry of finance, the executive director of ministry of mines and ourselves, and that is where we are,” he said.

“Hats off to our government that they don’t just come and decree, but it is a proposal that has been put on the table, and now it is subject for engagement,” he said.

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Namibian Sun 2024-11-07

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Premier League: Fulham 2 vs 1 Brentford Katima Mulilo: 22° | 36° Rundu: 20° | 31° Eenhana: 21° | 31° Oshakati: 21° | 31° Ruacana: 20° | 31° Tsumeb: 19° | 26° Otjiwarongo: 18° | 23° Omaruru: 20° | 32° Windhoek: 17° | 29° Gobabis: 19° | 28° Henties Bay: 16° | 22° Wind speed: 19km/h, Wind direction: SW, Low tide: 12:28, High tide: 06:39, Low Tide: 00:56, High tide: 18:52 Swakopmund: 15° | 18° Wind speed: 19km/h, Wind direction: W, Low tide: 12:26, High tide: 06:37, Low Tide: 00:54, High tide: 18:50 Walvis Bay: 15° | 24° Wind speed: 23km/h, Wind direction: W, Low tide: 12:26, High tide: 06:36, Low Tide: 00:54, High tide: 18:49 Rehoboth: 20° | 30° Mariental: 22° | 35° Keetmanshoop: 24° | 36° Aranos: 20° | 34° Lüderitz: 14° | 24° Ariamsvlei: 22° | 36° Oranjemund: 15° | 24° Luanda: 25° | 27° Gaborone: 19° | 27° Lubumbashi: 17° | 33° Mbabane: 13° | 24° Maseru: 12° | 25° Antananarivo: 14° | 30° Lilongwe: 22° | 29° Maputo: 19° | 26° Windhoek: 17° | 29° Cape Town: 17° | 22° Durban: 16° | 23° Johannesburg: 15° | 26° Dar es Salaam: 26° | 31° Lusaka: 20° | 31° Harare: 17° | 30° Currency: GBP to NAD 22.48 | EUR to NAD 18.74 | CNY to NAD 2.43 | USD to NAD 17.41 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.26 | EGP to NAD 0.34 | KES to NAD 0.13 | NGN to NAD 0.01 | ZMW to NAD 0.64 | ZWL to NAD 0.04 | BRL to NAD 3.05 | RUB to NAD 0.18 | INR to NAD 0.21 | USD to DZD 132.98 | USD to AOA 909.05 | USD to BWP 13.4 | USD to EGP 49.26 | USD to KES 129.2 | USD to NGN 1668.91 | USD to ZAR 17.42 | USD to ZMW 26.9 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1858.03 Down -1.09% | Casablanca Stock Exchange (CSE) MASI 14296.93 Down -0.02% | Egyptian Exchange (EGX) 30 Index 31045.26 Up +0.82% | Botswana Stock Exchange (BSE) DCI 9878.53 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 668.36/OZ UP +0.16% | Copper US$ 4.33/lb UP +2.42% | Zinc US$ 3 067.50/T UP 2.94% | Brent Crude Oil US$ 74.66/BBP DOWN -0.0112 | Platinum US$ 976.74/OZ DOWN -0.0076 Sport results: Premier League: Fulham 2 vs 1 Brentford Weather: Katima Mulilo: 22° | 36° Rundu: 20° | 31° Eenhana: 21° | 31° Oshakati: 21° | 31° Ruacana: 20° | 31° Tsumeb: 19° | 26° Otjiwarongo: 18° | 23° Omaruru: 20° | 32° Windhoek: 17° | 29° Gobabis: 19° | 28° Henties Bay: 16° | 22° Wind speed: 19km/h, Wind direction: SW, Low tide: 12:28, High tide: 06:39, Low Tide: 00:56, High tide: 18:52 Swakopmund: 15° | 18° Wind speed: 19km/h, Wind direction: W, Low tide: 12:26, High tide: 06:37, Low Tide: 00:54, High tide: 18:50 Walvis Bay: 15° | 24° Wind speed: 23km/h, Wind direction: W, Low tide: 12:26, High tide: 06:36, Low Tide: 00:54, High tide: 18:49 Rehoboth: 20° | 30° Mariental: 22° | 35° Keetmanshoop: 24° | 36° Aranos: 20° | 34° Lüderitz: 14° | 24° Ariamsvlei: 22° | 36° Oranjemund: 15° | 24° Luanda: 25° | 27° Gaborone: 19° | 27° Lubumbashi: 17° | 33° Mbabane: 13° | 24° Maseru: 12° | 25° Antananarivo: 14° | 30° Lilongwe: 22° | 29° Maputo: 19° | 26° Windhoek: 17° | 29° Cape Town: 17° | 22° Durban: 16° | 23° Johannesburg: 15° | 26° Dar es Salaam: 26° | 31° Lusaka: 20° | 31° Harare: 17° | 30° Economic Indicators: Currency: GBP to NAD 22.48 | EUR to NAD 18.74 | CNY to NAD 2.43 | USD to NAD 17.41 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.26 | EGP to NAD 0.34 | KES to NAD 0.13 | NGN to NAD 0.01 | ZMW to NAD 0.64 | ZWL to NAD 0.04 | BRL to NAD 3.05 | RUB to NAD 0.18 | INR to NAD 0.21 | USD to DZD 132.98 | USD to AOA 909.05 | USD to BWP 13.4 | USD to EGP 49.26 | USD to KES 129.2 | USD to NGN 1668.91 | USD to ZAR 17.42 | USD to ZMW 26.9 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1858.03 Down -1.09% | Casablanca Stock Exchange (CSE) MASI 14296.93 Down -0.02% | Egyptian Exchange (EGX) 30 Index 31045.26 Up +0.82% | Botswana Stock Exchange (BSE) DCI 9878.53 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 668.36/OZ UP +0.16% | Copper US$ 4.33/lb UP +2.42% | Zinc US$ 3 067.50/T UP 2.94% | Brent Crude Oil US$ 74.66/BBP DOWN -0.0112 | Platinum US$ 976.74/OZ DOWN -0.0076