Shaanika inherits mining sector under scrutiny over jobs and rights

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Shaanika inherits mining sector under scrutiny over jobs and rights

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TIRI MASAWI

Newly appointed Chamber of Mines Namibia Chief Executive Officer Fabian Shaanika has taken over leadership at a time when the mining industry is facing renewed scrutiny over jobs, labour practices and value addition in the economy.

The sector is under pressure from criticism by the International Labour Organisation (ILO), concerns from trade unions over worker treatment, and ongoing debate about whether mining is delivering enough local employment and economic transformation.

Shaanika will now have to navigate these challenges while defending an industry that remains one of Namibia’s biggest economic contributors but is increasingly questioned over how its wealth is shared.

Shaanika is taking over from long-serving Chamber CEO Veston Malango, who is finalising a structured handover process.

Shaanika told the Namibia Business Review last week that his immediate priority is to ensure continuity and protect the institutional strength of the organisation.

“My absolute, immediate focus as I take over leadership is to ensure a seamless, rock-solid transition,” Shaanika said.

He added “the Chamber has done phenomenal work over many years to establish Namibia as a highly respected, stable mining jurisdiction. My first duty is to safeguard that legacy and ensure nothing gets lost in transition.”

He said improvements will come later, but stability comes first.

“While maintaining continuity is the primary objective, I will concurrently be identifying operational areas where we can introduce immediate efficiencies and improvements,” he said. “However, optimizing those areas remains secondary to my short-term core goal.”

 

QUESTIONS OVER JOBS AND TRANSFORMATION

Shaanika’s appointment comes at a time when the International Labour Organisation (ILO) earlier this year raised concerns about the mining sector’s impact on employment and local value addition.

The ILO argues that Namibia’s mining industry has not done enough to move beyond exporting raw minerals and to create more downstream industries that generate jobs locally.

“The sector has not transformed significantly from extraction and export of minerals in their raw materials to increased value addition and beneficiation that would create more jobs locally,” the report said.

It pointed to international examples.

“Countries like Chile have implemented policies to enhance local employment through value-added processing and community engagement, resulting in a more diversified job market. Similarly, Canada has integrated Indigenous communities into mining operations, promoting inclusive employment practices.”

The ILO also raised concerns about environmental impacts linked to mining activities, including pollution and water contamination.

JOBS NUMBERS DISPUTED

Employment figures in the sector remain a point of contention.

According to the 2023 Population and Housing Census Labour Force Report, 14,337 people were employed in mining and quarrying, representing 2.6% of total employment.

However, Chamber of Mines member companies report higher figures.

They say the industry created 18,189 direct jobs in 2023.

For 2024, they report an increase to 20,843 direct jobs.

The difference highlights an ongoing debate between official statistics and industry reporting on the true size of mining employment in Namibia.

URANIUM MARKET OPTIMISM

Despite criticism, Shaanika says the mining sector is entering a stronger phase driven by global energy trends and uranium demand.

He said Namibia is well positioned to benefit from changes in global supply and demand.

“We are seeing a profound shift in the market; global utilities are aggressively returning to long-term contracting to lock in supply predictability and manage spot market volatility,” he said.

He added that nuclear energy demand is rising as countries shift towards cleaner energy sources.

“A structural deficit in global uranium supply, paired with surging nuclear energy demand as a clean energy transition source, places Namibia in an incredibly advantageous position,” he said.

 

UNION RAISES LABOUR CONCERNS

But not all stakeholders are optimistic.

Mine Workers Union of Namibia Secretary General George Amupweya said some mining companies are failing to comply with local labour laws.

He accused certain foreign-owned operators of dismissing workers without following due process.

“It is quite disturbing that some of the investors in our mining industry do not have regard for our laws and they fire our Namibian workers without following due process,” Amupweya said.

He said unions are often excluded from key discussions involving investors and government.

“It is important that the government consider involving the unions when they negotiate with investors in future,” he said. “The only time we are called is when some of our members are ill treated.”

LABOUR ENFORCEMENT

Labour researcher Sudwill Scholtz said Namibia must strengthen enforcement of labour standards in the mining sector.

He warned against the growing use of fixed-term contracts that blur the line between permanent and temporary employment.

“What should not happen is the exploitation of fixed-term contracts being renewed so regularly that lines are blurred as to what the true nature of the employment relationship actually is,” Scholtz said.

He said both employers and employees must have clarity on expectations and conditions of employment.

“Employer and employee must at all times be of the same mind as far as the basics of the employment relationship is concerned,” he said. “The employee has to know what the expectations are.”

Scholtz said the industry must move towards a shared understanding between companies and workers if it is to remain sustainable.

BALANCING GROWTH AND SCRUTINY

Shaanika now steps into a sector that is both thriving and under pressure.

Rising uranium demand and global energy shifts present major opportunities for Namibia’s mining industry.

But those gains are being matched by growing scrutiny over labour practices, job creation figures, and the sector’s broader social impact.

His leadership will be judged on whether the industry can maintain its economic strength while responding to mounting calls for transformation and accountability.



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