Alweendo
OGONE TLHAGE
WINDHOEK
Government’s decision to suspend mining new mining or prospecting activities in the country will drive investors away and disrupt the momentum of mining in the country, the Chamber of Mines of Namibia warned mines minister Tom Alweendo.
Chamber CEO Veston Malango said this in November in a letter to Alweendo, weeks before the minister proceeded to gazette the moratorium.
Namibian Sun reported on Monday that the ban on new mining and prospecting activities, until August 2021, came has now come into effect.
Malango on 16 November warned that this would curtail growth in the sector. Alweendo replied to Malango on 24 November, saying: “We will proceed and gazette as planned.”
“… It is our considered view that the pause we have taken is the right way to address the shortcomings [in the industry] without negatively affecting investors’ confidence.”
The moratorium would have similar economic effects to the coronavirus lockdown in April, the Chamber said.
The effects of the Covid-19 pandemic were still being felt in the sector, Chamber CEO Veston Malango said.
Effects detrimental
“Namibia cannot afford a further shutdown of investors in such an important sector as exploration and ensuing mining. We are extremely concerned that should the ministry proceed and gazette this suspension, it will attract negative publicity in the worldwide minerals sector,” Malango warned.
“The major negative impact of the proposed measure will block out much-needed exploration investments from serious investors in future,” he said.
“Suspension of new exclusive prospecting licence (EPL) applications will be at the detriment of maintaining the continuity of exploration work in the country and effectively will reduce exploration investments as investors will seek exploration opportunities elsewhere.”
Not the only tool
Malango acknowledged that while certain exploration licences were held for speculating purposes, a moratorium alone would not assist the ministry of mines to bring its policies in line with international best practices.
“The Chamber believes that the ministry of mines can and should weed out non-performing EPLs and only grant EPLs to entities that qualify in accordance with the provisions of the Minerals Act, without suspending new EPL applications from all-important serious investors,” Malango said.
He said EPLs were being renewed without tangible exploration work being carried out and in some instances, without environmental clearance certificates having been secured by the holders.
“These aspects are in violation of the Minerals Act, the Environmental Management Act and the EPL contracts with the ministry of mines,” Malango said.
WINDHOEK
Government’s decision to suspend mining new mining or prospecting activities in the country will drive investors away and disrupt the momentum of mining in the country, the Chamber of Mines of Namibia warned mines minister Tom Alweendo.
Chamber CEO Veston Malango said this in November in a letter to Alweendo, weeks before the minister proceeded to gazette the moratorium.
Namibian Sun reported on Monday that the ban on new mining and prospecting activities, until August 2021, came has now come into effect.
Malango on 16 November warned that this would curtail growth in the sector. Alweendo replied to Malango on 24 November, saying: “We will proceed and gazette as planned.”
“… It is our considered view that the pause we have taken is the right way to address the shortcomings [in the industry] without negatively affecting investors’ confidence.”
The moratorium would have similar economic effects to the coronavirus lockdown in April, the Chamber said.
The effects of the Covid-19 pandemic were still being felt in the sector, Chamber CEO Veston Malango said.
Effects detrimental
“Namibia cannot afford a further shutdown of investors in such an important sector as exploration and ensuing mining. We are extremely concerned that should the ministry proceed and gazette this suspension, it will attract negative publicity in the worldwide minerals sector,” Malango warned.
“The major negative impact of the proposed measure will block out much-needed exploration investments from serious investors in future,” he said.
“Suspension of new exclusive prospecting licence (EPL) applications will be at the detriment of maintaining the continuity of exploration work in the country and effectively will reduce exploration investments as investors will seek exploration opportunities elsewhere.”
Not the only tool
Malango acknowledged that while certain exploration licences were held for speculating purposes, a moratorium alone would not assist the ministry of mines to bring its policies in line with international best practices.
“The Chamber believes that the ministry of mines can and should weed out non-performing EPLs and only grant EPLs to entities that qualify in accordance with the provisions of the Minerals Act, without suspending new EPL applications from all-important serious investors,” Malango said.
He said EPLs were being renewed without tangible exploration work being carried out and in some instances, without environmental clearance certificates having been secured by the holders.
“These aspects are in violation of the Minerals Act, the Environmental Management Act and the EPL contracts with the ministry of mines,” Malango said.
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