Namibia
Legislation
- Minerals (Prospecting and Mining) Act 1992
- EIA Regulations 2012
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
| Regulatory Risk Rating Factors | Risk Level |
|---|---|
| First Come / First Serve | Subscribe |
| Application Criteria | Subscribe |
| Duration | Subscribe |
| Right to Renew | Subscribe |
| Competing Licences | Subscribe |
| Mineral Coverage | Subscribe |
| Right to Mine | Subscribe |
| Criteria for Mining Rights | Subscribe |
| Tenure | Subscribe |
| Surface Rights | Subscribe |
| Government Take | Subscribe |
| Transfer Rights | Subscribe |
| Change of Control | Subscribe |
| EIA Process | Subscribe |
| Power to Revoke | Subscribe |
| Age of Legislation | Subscribe |
| Other Factors | Subscribe |
Namibia’s legal framework contains some of the highest levels of government discretion of any mineral law, both in Africa and globally. Unfortunately, this results in the Minister ultimately having the capacity to control almost every aspect of a potential project. A decade of regulatory and policy uncertainty further impacts the potential investment environment and significantly affects Namibia’s legal risk profile. The long pursuit of economic empowerment legislation has resulted in the issuance, implementation and subsequent withdrawal of a range of damaging policies and draft texts that have slowly chipped away at investor confidence in the jurisdiction and the outdated legislative framework of the mining sector does little to improve this situation. One can only recommend that investors and operators in Namibia attempt to follow DeBeers example and negotiate a comprehensive Mineral Agreement with the State to offset the high degree of legal risk in the country.
Contents
Legislation
- Minerals (Prospecting and Mining) Act 1992
- EIA Regulations 2012
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
Overview
Namibia gained independence from South Africa in 1990, following 75 years of control. The South-West Africa People’s Organisation (SWAPO) became the governing party and has remained in power ever since. Whilst agriculture, manufacturing and tourism are all significant contributors to the country’s economy, the extractive industry and the subsequent processing and exportation of minerals has traditionally been the most significant economic contributor – responsible for around 10% of GDP in 2020. The country is however, struggling with reduced investment interest – a fact often attributed to uncertainty in relation to government policies and the regulatory environment.
Namibia is usually amongst the top five uranium producers in the world, with the two largest uranium mines in the country capable of producing around 10% of world uranium output. Namibia also has considerable diamond reserves and is one of the leading producers in terms of value of dollars per carat. Other mineral resources include copper, cobalt, lithium, lead, manganese, zinc, silver, gold and numerous industrial minerals such as cement, fluorspar and marble. Notable operators in the country include De Beers, which formed NamDeb – a diamond mining company and Debmarine Namibia – which conducts offshore diamond mining, both of which are 50:50 joint ventures with the Namibian government. De Beers signed a new 20-year agreement with Namibia in 2021 in relation to NamDeb’s operations – stabilising the country’s diamond mining sector for the foreseeable future.
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