N$4 billion investment targets deeper gold resources
STAFF WRITER
Navachab Gold Mine is investing almost N$4 billion over four years in exploration drilling and trackless underground mining as it looks to extend the life of the mine beyond its current open-pit operations.
Managing Director George Botshiwe said last week that the company is exploring underground mining as a way of extending the mine’s lifespan beyond the 18 years currently supported by its open-pit operations.
“We believe there are opportunities for expansion on underground mining and we have invested heavily on exploration on such a venture,” Botshiwe said.
Navachab has historically operated as a conventional open-pit mine, producing gold, with silver as a secondary product.
Botshiwe said the current open-pit operations have been improving in terms of profitability, taxes and royalties paid to the government, as well as the sustainability of the company.
The mine is a low-grade gold operation and currently produces about one kilogram of gold from processing one million tonnes of ore, he said.
While the previous open-pit plan secured operations until 2034, Botshiwe said the underground plan aims to reach deeper resources and extend the mine’s lifespan beyond 2045.
The mine recorded its highest annual production in 2025, producing 130,700 ounces, or 4,067 kilograms, of gold, up from its 2024 production.
Since it started operating, Navachab has produced more than 2.5 million ounces of gold.
Botshiwe said the mine’s performance has also been supported by strong global gold prices.
“Since our inception when the mine was operating at average we have started seeing positive results of our operations. We contributed a total of N$1.28 billion in direct state fiscal taxes to the Namibian government in the year 2025 and we expect to continue improving this,” he said.
The mine generated N$8 billion in annual revenue and recorded a net profit of N$1.67 billion.
It also reinvested more than N$3.5 billion into infrastructure upgrades, modernising machinery and exploration projects.
Botshiwe said Navachab spent N$2.6 billion on procurement, with N$2.1 billion, or more than 80%, going to local Namibian businesses.
The mine also spent N$41.6 million on corporate social responsibility initiatives, including funding the early stages of the planned N$80 million Karibib Medical Centre.
A further N$18.3 million was spent on institutional training and local skills development.
Navachab is owned 93.73% by QKR Namibia Mineral Holdings, while the government-owned Epangelo Mining Company holds 6.27% through its special purpose vehicle, JG Investment Two (Pty).
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