STAFF WRITER
The Chamber of Mines of Namibia says the mining industry continues to play an important role in the local economy, even though recent data from the Namibia Statistics Agency (NSA) shows a decline in performance.
According to the NSA, the mining and quarrying sector dropped by 9.4% in 2025. This was mainly due to a 19.4% decline in diamond mining, as well as contractions of 12.2% in metal ores and 14.5% in other mining and quarrying activities.
However, the Chamber of Mines, in its latest report released last week, said the size of the decline appears bigger than expected.
The Chamber said strong growth in gold and uranium production is expected to help balance the drop in diamond mining.
The Chamber’s chief economist, Lauren Graham, said the overall contraction in the mining sector may be overstated by the NSA when compared to actual production trends.
“Metal ores, including gold and zinc, accounted for the largest share of mining activity, contributing 55% of total mining value added, and uranium contributed around 19% of mining output, reflecting the growing importance of strategic minerals in Namibia’s mining sector,” Graham said.
The Chamber added that diamonds remain an important contributor, making up about 2.4% of Gross Domestic Product and around 17% of total mining output, despite continued challenges in the global diamond market.
Graham also said commodity prices are still supportive for some of Namibia’s key minerals. She noted that gold prices were very strong in February 2026, averaging US$5,019.97 per ounce, driven by demand for safe-haven assets amid rising geopolitical tensions.
She added that uranium prices have also increased significantly over the past year, rising from US$67.26 per pound in February 2025 to US$88.23 per pound in February 2026, supported by strong global demand for nuclear energy.
Graham said the global economic environment has become more uncertain due to rising geopolitical tensions in the Middle East.
She said demand for gold, uranium and other strategic minerals linked to energy security and the global energy transition is expected to support the sector. However, she warned that weak diamond demand and rising costs, especially higher fuel prices, remain key risks for mining operations in the short term, particularly for Namibia’s diamond mining industry.
COMMENTS