ministry of mines and energy annual report 2007/8 · 2008-10-21 · ministry of mines and energy...

MINISTRY OF MINES AND ENERGY

ANNUAL REPORT 2007/8 PERIOD OF REVIEW 1 APRIL 2007 - 31 MARCH 2008

Contents

Minister’s Foreword pg. 2

Deputy Minister’s Foreword pg. 4

Structure of the Ministry of Mines & Energy pg. 5

Office of the Permanent Secretary pg. 6

Directorate of Geological Survey pg. 9

Directorate of Mines pg. 19

Directorate of Diamond Affairs pg. 23

Directorate of Energy pg. 25

Directorate of Administration and Finance pg. 29

Acronyms and Abbreviations pg. 32

Editors: J.S. Iita, K. Hamutenya

© Government of the Republic of Namibia

During the financial year 2007/2008, the Ministry of Mines and Energy

(MME) engaged in activities that have a significant and far-reaching

impact on the overall performance of the national economy and the

wellbeing of the Namibian people. These activities were undertaken in

line with Government policy to promote economic growth and uplift

our people, socio-economically. These activities involve minerals ex-

ploration and mining, diamond production and beneficiation, measures

to mitigate the possible effect that the electricity shortage has on the

national economy as well as running the high-resolution airborne

geophysical survey programme.

During this period, mining has been one of the busiest and most pro-

ductive components, particularly in terms of minerals exploration.

Exploration expenditure has surpassed annual statistics (in excess o f

half a billion Namibian Dollars) recorded since independence in 1990.

Our country has attracted exploration and mining companies from all

over the world, making it currently one of the most favourable desti-

nations, not only in Africa, but also around the world. We will hon-

our our commitments to the international community in terms of

satisfying accords related to mining and minerals.

I am proud to say that Namibia has been rated the second least risky

country in the world, according to the 2007 Resource Stocks World

Risk Survey. This can be attributed to the security of tenure, and

transparent and competitive mining legislation that we have instituted.

In addition, Namibia became the third country in sub-Saharan Africa

to be given an investment-grade rating, as the country is politically

stable with well-managed mineral resources.

During the year under review, diamond production increased by 31

per cent and the country launched its diamond beneficiation pro-

gramme with the first sale and the official opening of Namibia Dia-

mond Trading Company (NDTC) in October 2007. Uranium produc-

tion also increased by 29 per cent following the opening of a new

uranium mine by Langer Heinrich and the expansion programme of

the Rössing Uranium Mine, which will extend the life expectancy of

the mine to 2016.

In reaction to the current energy shortage across the southern Africa,

Namibia has embarked upon various projects to manage and meet the

domestic demand for electricity. The short-term projects undertaken

to help mitigate the crisis are the Demand Side Management (DSM)

and the Supply Side Management (SSM) projects, such as the Hwange

Power Station project.

As a DSM alternative, NamPower distributed about 600,000 energy-

saving bulbs countrywide towards the end of last year. This is ex-

pected to reduce the maximum demand for electricity by about 20

MW. NamPower has al so introduced the ‘Time of Use Tariff’ for

customers who use a substantial amount of electricity, such as the

mines, in an attempt to promote the efficient use of electricity. Other

DSM initiatives, such as the replacements of electric geysers with

solar water heaters in all Government institutions and the use of

Ripple Control Systems to automatically regulate the switching off/on

of electric geysers by the municipalities and town councils, are in the

pipeline for implementation and extension respectively.

Since 01 January 2008 and as a part of its SSM, Namibia started re-

ceiving the first 40 MW from the Hwange Power Station in Zim-

babwe, following an agreement between NamPower and the Zimbab-

wean power utility. Namibia will receive 150 MW from Hwange as

from September 2008 for five years.

Namibia is also working very hard to increase its internal power gen-

eration to meet the rapidly growing local requirements for electricity.

The Baynes Hydro Power project looks very promising for implemen-

tation and the Namibian and Angolan governments are expected to

Minister’s Foreword

Honourable Erkki Nghimtina, MP, Minist er

Ministry of Mines & Energy Annual Report 2007 / 08 | Pg. 2

sign an agreement with a consultant in 2008 for pre-feasibility studies

to begin. Due to its nature and size, the Baynes project is expected to

be completed within the next five years and can be considered a me-

dium- to long-term project.

In 1991 Namibia opened its first petroleum-licensing round. Since

then nine exploration companies have been awarded licences and one

petroleum field has been declared over the Kudu gas field. A total of

almost 34,000 kilometres of speculative 2D sei smic and 33,500 kilo-

metres of company 2D seismic have been acquired. In addition, 1,700

square kilometres of 3D seismic have been acquired and 10 wells

have been drilled, giving a total of 15 offshore wells, including the

eight wells drilled on Kudu gas field.

Confirmed reserves in the Kudu gas field have compelled the licence

holders to commission a feasibility study for a gas-fired power station

onshore Namibia and to pursue discussions on large-scale gas exports

to South Africa. If negotiations go according to plan, initial gas pro-

duction for the power station could commence in 2009, with the first

gas exports expected by about 2011.

Other geological highlights in this regard include:

• At least two levels of extensive oil-prone source rocks

were confirmed through drilling.

• Various structural and stratigraphic traps are present at

different levels.

• The Namibe Basin has many structures and there is evi-

dence to suggest that salt may have been present in certain

places.

• Various types of sandstones occur at several levels in the

succession. These include extensive deep-water sandstones

that appear to be very similar to those that at present gen-

erate so much interest in West Africa. The recognition of

these latter sandstones on the seismic data and their pres-

ence in a mound structure in the well in quadrant 2012

encouraged us to undertake the 1998 deep-water seismic

survey.

• A well in quadrant 1911 intersected a carbonate reservoir

that once contained oil. Several wells off the west coast o f

South Africa have discovered small quantities of oil.

• Various oil slicks, which are upgraded to possible seepage,

have been observed offshore Namibia.

Furthermore, I am glad to report that the high-resolution airborne

geophysical survey programme at the Directorate of Geological Sur-

vey, which aims to attain virtually complete national coverage by

2010, continued throughout the year. Final data processing of the

Kuiseb and Karakuwisa areas and flying of the Ai-Ais, Ondangwa and

Bethanien areas were completed during the year.

The achievements made during the period under review were due to

the commitment and sense of responsibility demonstrated by inves-

tors and the staff of the MME, to whom I am most grateful.

Honorable Erkki Nghimtina, MP Minister Republic of Namibia



The Ministry of Mines and Energy, as the custodian of Namibia’s rich endowment of mineral, geological and energy resources, facili-tates and regulates the responsible development and sustainable utilization of these resources for the benefit of all Namibians. To achieve this, we set the following objectives and strive to honour them continuously. Our Objectives • To promote investment in the mineral and energy sectors. • To ensure the sustainable contribution of geological and energy resources to the socio-economic development of Namibia. • To create a conducive environment for the mineral and energy sectors. • To regulate and monitor the exploration and exploitation of mineral and energy resources.

• To minimize the impact of exploitation of mineral and energy resources on the environment. • To provide professional and customer focused services.

Honourable Henock S. Ya Kasit a, Deputy Minist er

Deputy Minister’s Foreword


The Structure of the Ministry of Mines and Energy

DEPUTY MINISTERDEPUTY MINISTERDEPUTY MINISTER

DIRECTORATE OF DIRECTORATE OF DIRECTORATE OF

MINESMINESMINES


DIAMOND AFFAIRSDIAMOND AFFAIRSDIAMOND AFFAIRS

MINISTERMINISTERMINISTER

PERMANENT PERMANENT PERMANENT

SECRETARYSECRETARYSECRETARY


ADMINISTRATION & FINANCEADMINISTRATION & FINANCEADMINISTRATION & FINANCE


GEOLOGICAL SURVEYGEOLOGICAL SURVEYGEOLOGICAL SURVEY


ENERGYENERGYENERGY

The Office of the Permanent Secretary provides the overall vision and lead-

ership of the five directorates to carry out the objectives entrusted upon

them by the Vision and Mission Statements of the Ministry.

The objectives of the Office of the Permanent Secretary in

2007/2008 were as follows:

• Improved service culture and customer focus

• Improved knowledge of stakeholders and their need. Improved

stakeholders relations, collaboration synergy

• Improved promotion of Namibia and it’s Resources with incen-

tives for investors and exploration and processing

• Encourage local small and medium enterprises (SME’s)

• Improved Mining and Energy Outputs

• Increased Sales/Exports, especially – Value Added Minerals

Improved service culture and customer focus

Customer charters are displayed at various places within the MME,

such as the library, reception and some offices. The charters reflect

our commitment to deliver a high standard of service at all times.

They are also there to explain to our clients and customers how to

file complaints if they are not satisfied with our service.

Some of the important initiatives undertaken during the year under

review were the production of the MME’s corporate video and the

regular updating of our website. For the past seven years, the MME’s

annual report has been published on time.

Improved knowledge of stakeholders and their need. Im-

proved stakeholders relations, collaboration synergy

A number of Electricity Supply Industry Restructuring (ESI) meetings

took place during which important issues on restructuring the indus-

try were discussed.

Various committees, such as those seeing to Rural Electrification and

the National Energy Fund, held regular business meetings. A number

of Technical Advisory Committee meetings of the oil companies were

chaired, as were negotiations over oil and gas licence applications.

Consultations were held with local commercial banks on the possibil-

ity of financing public projects.

Oranjemund was visited as part of the Project SIDA Eigus familiarisa-

tion tour. This formed the basis of a Cabinet submission, which culmi-

nated in the establishment of an inter-ministerial committee on Oran-

jemund.

Mines such as Otjihase and Matchless were visited and fruitful ex-

changes made.

Consultations were also held with Namdeb-Debmarine and the oil

industry. A further highlight of the year under review was participat-

ing in the formulation of the third National Development Plan

(NDP3), while the MME also made a presentation on energy security

to the Joint Intelligence Committee.

The International Lead Zinc Study Group afforded us an opportunity

to inform the world, at a conference in Lisbon in October 2007, of

the mining regime in Namibia. Prior to that, a successful Base Metal

Mining Conference was hosted by the MME.

New ideas about Namibia’s uranium and nuclear energy policy and

legislation have emerged and we are now at an advanced stage in this

regard.

Office of the Permanent Secretary

Mr Joseph S. Iit a, Permanent Secret ary


Liaison work continued with the parastatals NamPower and Namcor.

Consultation is also underway with Electricity Control Board (ECB),

as the regulating body, to oversee the merger of the Northern Re-

gional Electricity Distribution Company (Nored) with Oshakati Pre-

mier Electricity (OPE).

Good progress was made in our co-operation with Angola on the

development of Baynes Hydropower Scheme. Both governments have

given the green light to the Permanent Joint Technical Commission on

the Kunene River to engage consultants for the pre-feasibility study.

Due to a very busy schedule during the review period, the Office of

Permanent Secretary was unable to visit rural electrification projects,

but these visits are top of the agenda for 2008/2009.

Improved promotion of Namibia and it’s resources with

incentives for investors and exploration and processing

The improved promotion of Namibia and its resources was achieved

through participation at international conferences and trade shows.

Of particular note was the MME’s attendance at the Namibia Interna-

tional Investors’ Conference, which was held in Windhoek in 2007,

and the Mining Indaba in Cape Town in 2008.

Encourage local small and medium enterprises (SME’s)

Small-scale mining constitutes an important means of generating in-

come. In rural areas, where jobs are scarce, the socio-economic im-

pact of small-scale mining is significant. Where this sector is well es-

tablished and organised, it has great potential for income generation,

which in turn improves living conditions and sustainable development

in general. The Namibian Government promotes the development of

small-scale mining in order to create employment opportunities in

rural areas and to diversify the minerals sector.

More than 80 per cent of an estimated 2 000 small-scale miners in

Namibia exploit gemstones and crystal specimens. The extraction of

high value metals is limited to few individuals involved in producing

tantalite and tin concentrates. Products of the small-scale miners are

usually marketed in an unprocessed way, providing an opportunity to

add value locally.

The Small-Scale Miners’ Stakeholders Forum has committed itself to

capacity building in the small-scale mining sector in Namibia, in order

to boost the chances of small-scale miners participating in the eco-

nomic mainstream of the country. The forum has been organised by

the Erongo Regional Council and the Rössing Foundation with the full

support of the MME.

In order to concentrate on providing assistance to small-scale miners

on a consistent and continuous basis, we have asked the Public Ser-

vice Commission to create a division on small-scale mining at the

MME. We have also received approval from the National Planning

Commission Secretariat to fund small-scale miners.


Increased Sales/Exports, especially – Value Added Minerals

Base Metals Mass Value (million N$)

Copper blister 20416 357,501

Copper concentrate 2,520 395,409

Lead concentrate - 16, 896 117,314

Zinc Concentrate- 97,323 639,262

Zinc refined 152,405 3,692,590

Precious Metals

Gold Bullion 2,520 395,409

Gold Blister 597 104,369

Silver Blister 6,835 29,260

The figures for base and precious metals have been rounded just add N$000

Precious Stones Value (million N$)

Diamonds 2,237,679 carats 5,275,019

Nuclear Fuel Minerals Value (million N$)

Uranium (metal contained)

4, 216 t 3,625,476

Dimension Stones

Granite 38,106 60,958

Marble 16,759 14,444

Industrial Minerals Value (million N$)

Common / Coarse Salt:

Exports 54,002 14,682

Local 751,341 35,613

Rock Salt 3,879 825

Fluorspar 112,726 126,853

Value (million N$)


Production

Base Metals

Copper blister 20,632 t

Copper concentrate 25,384 t

Lead concentrate 21,759 t

Manganese 47,620 t

Zinc Concentrate 94,774 t

Zinc Refined 150,080 t

Precious Metals

Gold Bullion 2,496 kg

Gold Blister 672 kg

Silver Blister 7,902 kg

Precious Stones

Diamonds 2,348,909 Carats

Dimension Stones

Granite 65,671 t

Marble 16,759 t

Industrial Minerals

Common/Coarse Salt 795,846 t

Rock Salt 9,528 t

Fluorspar 118,766 t

Nuclear Fuel Minerals

Uranium 3,782 t

Improved Mining and Energy Outputs

The Geological Survey of Namibia is the national institution for earth

sciences and geological resources. It’s mission is to enhance knowledge and

awareness of Namibia’s geological resources. Through scientific research

the Geological Survey of Namibia facilitates the search for mineral re-

sources, geological engineering, land-use planning and sustainable develop-

ment with due regard to the environment.

The Geological Survey of Namibia’s main objectives are:

1. Provide geoscientific information through research to promote

sustainable development and investment in Namibia

2. Guide land-use decisions to ensure the availability and sustain-

ability of resources for the current and future welfare of our

society

3. Stimulate investment in Namibia’s mining sector in order to

contribute to the development of Namibia’s economy

4. Create awareness of the earth sciences in order to enhance the

understanding of the geo-environment and its interaction with

the life-supporting system of the Namibian people.

The following achievements were made under the

objectives mentioned:

1. Provide geoscientific information through research to

promote sustainable development and investment in

Namibia

• Field inspection of mapping was undertaken on map sheets

Swartbooisdrift 1712, Opuwa 1812, Kamanjab 1814 (all Kunene

region) and Tsumeb 1916 (southern Oshikoto and northern

Otjozondjupa regions) for revision and updating of provisional

map compilations, planning of future revision mapping and new

detailed 1:50,000 scale mapping. New 1:50,000 scale geological

field mapping was carried out in area 1814 CD of the Kamanjab

1814 map sheet (southern Kunene region) and work was

started in area 2116 AA of the Okahandja 2116 map sheet

(eastern Erongo region). Provisional compilations of 1:250,000

scale map sheets Kamanjab1914 and Tsumeb 1916 were com-

pleted, and colour plots as well as digital data have been re-

leased on Open File. Results from new field mapping of areas

2116C and 2117D have been incorporated into provisional map

sheet Okahandja 2116.

• Work was started on the compilation of a 1:500,000 scale the-

matic map covering the area of northern Namibia underlain by

Directorate Geological Survey of Namibia

Dr Gabi Schneider, Director of Geological Survey

1: 250, 000 Scale Sheet Index Map


the Neoproterozoic sedimentary succession of the Otavi

Group, which hosts important base metal deposits of the Otavi

Mountain area (southern Oshikoto and northern Otjozondjupa

regions) and related deposits of the eastern and northern Kun-

ene and western Omusati regions.

• Stable isotope studies and U-Pb radiometric age dating were

carried out as part of an ongoing research programme in co-

operation with foreign university research institutions to assist

with stratigraphic correlation in regional geological mapping and

geophysical interpretation. Optical stimulated luminescence

(OSL) age dating of soil sediment from fluvio-marine terraces

between Wlotzkasbaken and Mile 108 and along the Skeleton

Coast Park was also carried out to assist with stratigraphic

correlation along the coastal zone.

• A synthesis of airborne LIDAR laser data (high-resolution to-

pographic and accuracy elevation images), sedimentology, OSL

dates, palaeontology and petrography are used in the improve-

ment of the Cenozoic stratigraphic framework of fluvio-marine

terraces along the Skeleton Coast Park. Through interpretation

of the terraces’ lithofacies exposed in the research area, various

depositional facies are recognised on the basis of distinct

lithologies, and assemblages of sedimentary structures. Heavy-

mineral contents on the modern beach and the terrace bound-

ing it in the 63-125µm and125-250µm fractions proportionally

average 70 per cent but can reach 96 per cent in some of the

beach concentrates generally associated with the intertidal

zone. The principal minerals of economic interest found in the

heavy mineral sands are ilmenite, titanite, rutile, zircon, and

garnet. Based on the faunal assemblages, the research area can

be divided into three zones of cool-water, cool-water/warm-

water and warm-water assemblages. Marine sediment with

mixed cool-water/warm-water assemblages occurs throughout

the area and is associated mostly with palaeo-lagoons / modern

coastal pans at an elevation between one to four metres above

mean sea level (MSL). The cool-water assemblage also occurs

throughout to a maximum elevation of 12m above MSL. How-

ever, the warm-water assemblages were mainly observed south

of the Huab River at an elevation ranging from 12 to 35m MSL.

The photograph shows an exposed marine terrace. Cobble

boulder gravel at the base is fining upward into size and shape

sorted cobble-, pebble-gravel and then to sand unit that is over-

lain by another cobble boulder gravel unit. This is interpreted as

a shorefacies deposited in a high-energy environment, repre-

senting a storm and post-storm deposit.

An exposed mar ine t er race

Geomorphology Profile


Topographic Elevat ion Map

• The high-resolution airborne geophysical survey programme,

which aims to attain virtually complete national coverage by

2010, continued throughout the year. Final data processing of

the Kuiseb and Karakuwisa areas, and flying of the Ai-Ais, On-

dangwa and Bethanien areas was completed during the year.

Further tenders were awarded for the Fransfontein and Ai-Ais

areas. Once these surveys are complete, survey data will repre-

sent over 85 per cent national coverage. The demand for air-

borne magnetic and radiometric data continues to be high and

during the year sales to the value of N$615,370.00 were made.

• Data for the airborne hyperspectral survey of the Otavi Moun-

tainland was delivered. Further hyperspectral surveys over the

Trekkopje Uranium Prospect and six selected mineral case

studies were completed. This data will complement the high-

resolution airborne geophysical data coverage of highly pro-

spective areas and provide important baseline data for environ-

mental monitoring. Rock samples from the Rössing/

Swakopmund uranium province were collected for Portable

Infrared Mineral Analyser (PIMA) and X-Ray Diffractometer

(XRD) analysis for comparison with Hymap (Hyvista) data. This

will form part of a staff member’s MSc project.

• A qualitative interpretation of the airborne magnetic and radio-

metric data has been completed. Further work, including two-

dimensional modelling, field measurement of susceptibilities

over significant anomalies and ground verification of interpreted

anomalies, was also undertaken in the Kamajab and Karakuwisa

areas.

• The Geophysics Division also continued to manage the Tsumeb

Seismic Station and operate scientific equipment at this station

on behalf of the Comprehensive Test Ban Treaty Organisation

(CTBTO). Seismic equipment was installed at the seismological

vaults at Rundu, Kamanjab, Ai-Ais and Ariamsvlei. A site recon-

naissance and noise survey for an additional station in the vicin-

ity of Opuwo was conducted and a site chosen within the

Opuwo State Hospital grounds. Nine earthquakes were de-

tected by the Namibian Seismological Network during the year.

• Visits to active mines in western Namibia were undertaken to

familiarise staff members with the operations and latest devel-

opments at the mines. The following mine operations were

visited: Langer Heinrich Uranium Mine; Rössing Uranium Mine;

Swakop Salt Company and Walvis Bay Salt Refineries. A joint

field visit was undertaken with the Directorate of Mines to

investigate the progress done on various uranium projects in

Erongo region. The projects visited were: Goanikontes Project

(Bannerman Resources Namibia (Pty) Ltd); Tubas Deposit

(Reptile Uranium (Pty) Ltd); Husab/Ida Dome Project (Extract

Resources (Pty) Ltd); Namib Lead Mine (Craton Diamond (Pty)

Ltd); Valencia Uranium Project (Westport Resources (Pty) Ltd);

Namibia-China Mineral Resource Investment and Development

CC; Marenica Uranium Project (West Australian Metals Ltd);

Omandumba Uranium Deposit (Erongo Energy (Pty) Ltd) and

EPL 3477 Uranium Deposit (Erongo Energy (Pty) Ltd). During

this trip, environmental problems caused by previous explora-

tion activities in the 1970s were detected. Another joint field

trip with the Directorate of Mines took place to exploration

and mining activities in the Karas Region. The areas visited dur-

ing this trip were: Asab Coal Project (Japonika Investments (Pty)

Ltd); Rosh Pinah Mine; Orange River Block 4 (Kalahari Karas

Gem & Fourth Mining Co. (Pty) Ltd); Skorpion Mine; Haib Cop-

per Deposit (Deep South Mining Co. (Pty) Ltd); Tantalite Valley

Mine (Tameka Shelf Co. (Pty) Ltd); and Ysterputs Mine (George

Swanson Enterprises (Pty) Ltd).

• Since 2000, the Geological Survey, through the Geochemistry

and Laboratory Division, has been conducting a regional geo-

chemical mapping programme, targeting to cover most of the

country by stream sediment and soil sampling. During its first

phase, this programme is focused on sampling and analysing the

stream and soil sediments. In the subsequent phases, the analyti-

cal data will be used to produce geochemical maps, the regional

geochemical data will be entered into the Earth Data Namibia

database and this will form part of a Global Geochemical Data-

base for Environmental and Resource Management. The current

sampling density is 8 to 10 km and samples are taken either as

stream (within river beds) or as soil (flat areas with no clear

run-off) samples. At each sampling site, two fractions (smaller

than 2mm and smaller than 0.18mm) of the material are col-

lected and both fractions are analysed. These two fractions

cover the whole range of softer and harder minerals. In total,

3,189 samples were collected and treated in 2006. Laboratory

work on these samples, together with those collected in the

previous year, comprised sieving and riffling (2,800 samples),

milling (ball mill; 3,952 samples) and pressing pellets for X-Ray

Fluorescence (XRF) analysis (2,322 samples). The geochemical

maps compiled from the analytical results will be made available

to the public. Data from previous geochemical surveys and

completed industrial exploration projects (i.e. archival data) are

included in the Earth Data Namibia database and can be re-


trieved by the stakeholders. The compilation of the archival

data is an on-going process based on the availability of historic

data.

2. Guide land-use decisions to ensure the availability and

sustainability of resources for the current and future

welfare of our society

• Environmental monitoring campaigns were conducted at

Okorusu Fluorspar Mine, Samicor’s offshore activities, Skorpion

Zinc Mine, the salt mining companies in Walvis Bay, Swakop-

mund and Cape Cross. In addition, the hazardous risks of the

abandoned mines Berg Aukas and Oamites were investigated in

detail. Skorpion Zinc Mine was visited for an environmental

inspection. The analysis of tailings material showed high

amounts of zinc and elevated amounts of copper, nickel, cad-

mium, chromium, lead and uranium. Surface soil samples at

downwind direction are elevated in zinc compared to surface

soil upwind of the mining area. This reflects windblown dust

dispersed from the mining area. The groundwater samples

taken from monitoring boreholes contain high concentrations

of zinc and boron. The high zinc values in groundwater trace

mainly back to the natural zinc mineralisation in the area.

• Berg Aukas served as a mining town until 1979. Roasting of ores

of lead, vanadium and zinc produced an unknown hazardous risk

in the surrounding area. About 260 soil samples were collected

and analysed for heavy metals. The severely contaminated area

at Berg Aukas, as a zone of high hazardous risk, represents an

ellipsoid with diameters of approximately 3.5 km (E-W) and 2.5

km (N-S). The abandoned processing area is now part of the

town centre and the National Youth Training Centre (NYTC).

The National Youth Service experimental farm grows crops to

the south and east of the town. Some crops, like sweet pota-

toes, cabbage and Irish potatoes, accumulate heavy elements

that are detrimental to health. The people living and working in

Berg Aukas face health risks from inhalation and ingestion of the

dust as well as by eating crops grown on the contaminated soils.

Prolonged exposure to heavy metals in concentrations as found

in the soils in Berg Aukas can cause diabetes, neurological ef-

fects as well as skin, kidney or lung cancer. Thus, the central

part of Berg Aukas should be avoided for any further industrial,

residential, or agricultural developments. The study recom-

mends a wide variety of measures to stop additional contamina-

tion and to limit further exposure of the people at the training

centre to toxic metals by remediation and proper land use plan-

ning. The recommendations have since been implemented by

the NYTC.

• The Geological Survey was instructed by Cabinet to investigate

possible effects on human health of the abandoned Oamites

Mine site. An unusually high rate of health problems was re-

ported among the approximately 2,000 Namibian Defence

Force (NDF) troops at the Oamites Mine site. More than five

million tons of fine-grained tailings material was dumped in the

Oamites valley, which is permanently blown by wind through

the base camp. The investigations of the tailings material

showed no harmful concentrations of toxic metals like copper,

cadmium, lead or uranium. Likewise, the groundwater, which is

used for human consumption, is of good quality. The study con-

cludes that the extreme angularity of the tailings particles

(quartz grains) causes physical irritations and swelling of the

mucous tissue of the upper and middle respiratory system fol-

lowed by infections. Remediation strategies include covering the

Lead concent rat ion in t he soil at Berg Aukas

Dust cont amination at Oamit es


tailings material with a thick layer of waste rock or an eventual

profitable reprocessing of the tailings. The economic and techni-

cal viability still need to be considered. Therefore, the division

has started mineralogical studies and leaching tests on the

Oamites tailings material. If there are no permanent solutions,

the NDF is prepared to close the base.

• The regular environmental inspection at Okorusu Fluorspar

Mine focused on the possibility of groundwater contamination

due to seepage from tailings dams and air pollution due to dust

emission. Six water samples were taken from tailings dumps,

monitoring boreholes and boreholes on the surrounding farms

for baseline data. The water analysis points to a generally poor

quality of the groundwater in the whole region. High fluorine

concentration in the groundwater, most probably, traces back

to the widespread, naturally occurring fluorite mineralisations in

the Okorusu area.

• Samicor’s diamond mining and exploration vessels were in-

spected in February 2008. The comprehensive environmental

report is in preparation.

• The municipalities of Rehoboth, Tsumeb and Okahandja as well

as Outapi, Oshakati, Ondangwa and Eenhana were supported in

urban and land use planning. The division conducted a sampling

of spring water in the Rehoboth area. Residents are concerned

about the seepage of spring water onto the surface, its impact

on the community and it susceptibility to contamination. The

spring water is not suitable for human consumption as it con-

tains high concentrations of sulphate and fluorine. Hazardous

elements like mercury, cadmium or arsenic, which are typical

on hot springs, occur in the water in very low, mostly undetect-

able concentrations. In addition, three rock samples, formed by

precipitation of silica and calcium carbonate from spring water,

were collected. The soils and rocks in the surroundings of the

hot springs do not pose any risk for humans or livestock. Thus,

the hot spring area might be used for recreational purposes and

developed as a park.

• Investigations continued of soil contamination in Tsumeb as a

result of more than 100 years of smelter activities and mining.

Recommendations for further town planning were forwarded to

the Tsumeb Municipality based on the analysis of 450 soil sam-

ples for contaminants of concern (arsenic, lead, cadmium, cop-

per, zinc). Urban Green CC is conducting a Socio-Economic

Impact Assessment for areas that were proposed for future

town extension by the Geological Survey. Urban Green CC has

also been contracted to conduct the Environmental Impact

Assessment for the new waste disposal site to the west of

Tsumeb, which was investigated by the Geological Survey and

considered as an acceptable option. The studies on the environ-

mental situation at Tsumeb were completed by medical tests of

Tsumeb residents and a study on the quality of agricultural

products. Vegetative material collected in areas with elevated

soil contamination in the surroundings of the Tsumeb smelter

complex is critically contaminated with lead. The land use in the

industrial zone adjacent to the smelter complex should be lim-

ited to industrial activities. Families with children living in the

zone and the adjacent TransNamib hostel should be resettled

to safer places. An action plan was elaborated by Namibia Cus-

toms Smelter to respond to the situation.

• The Okahandja Municipality was supported in the environ-

mental assessment of a major development project. In general,

the analyses confirm that surface soils in the project area are

not contaminated by trace metals, and thus, the area is suitable

for residential developments. The Okahandja Municipality has

been cautioned not to develop on the lower river terraces of

the Okahandja River due to the possibility of ground failure and

floods.

• The northern towns of Outapi, Oshakati, Ondangwa and Een-

hana were visited to familiarise with geo-related problems of

urban planning. The risk assessment of existing waste disposal

sites, especially concerning groundwater pollution, the delinea-

tion of future waste disposal sites as well as the assessment of

flooding risks are the focal points of support.

• The Geological Survey / Federal Institute for Geosciences and

Natural Resources (BGR) Project is the driver of the Geology

and Environment Committee of the Namibian Small-Scale Min-

ers’ Stakeholder Forum. In the current reporting period, three

activities were conducted: the promotion of calcrete as a low-

cost housing material including the completion of the study

‘Calcrete: A cost-efficient natural building material for housing

construction in Namibia’ as well as a show-case house in Katu-

tura; a training course for small-scale miners in minerals evalua-

tion and value-addition; and the construction of kiosks at the

Spitzkoppe junction.


• Calcrete can be used in both the low-cost housing sector in

rural areas and in the commercial housing industry. Geochemi-

cal as well as physical-mechanical testing has proven the favour-

able properties of tuffaceous calcrete from various Namibian

deposits as masonry units. In comparison with conventional

building stones, calcrete has a cost advantage of 30 to 60 per

cent. In addition, small-scale mining for calcrete creates job

opportunities in rural areas in many parts of Namibia.

• The second training course, ‘Evaluation, adding value, cutting

and polishing of semi-precious stones’, provided a holistic ap-

proach to the identification, evaluation and adding value to the

stones mined by small-scale miners in Namibia. Participating

small-scale miners were trained in various methods of adding

value to the stones. The participants cut and polished stones

and produced marketable jewellery, such as necklaces and ear-

rings, of impressive quality. The products prove that there are

great opportunities to adding value to semi-precious stones in

Namibia for small-scale mining communities. The training

course was a success and will be followed up by at least two

additional courses in 2008.

• The Erongo Small-Scale Mining Stakeholders Forum defined

better market access and marketing as keys to improving their

social situation. The forum agreed on the construction of a

central marketplace for Erongo and Spitzkoppe miners at the

junction of two major tourist routes known as the ‘T-junction

minerals and gemstone vendors’ or ‘Uiba-oas Co-operative’.

The marketplace should secure better income for the group,

and thus, improve their living conditions. Besides a significant

financial commitment, the Geological Survey / BGR Project

advised the community on the suitability of various natural

building materials and the availability of rock types in the closer

vicinity of the construction site. The groundbreaking ceremony

with His Excellency Dr Sam Nujoma and many representatives

from the public and private sectors took place on 28 July 2007.

This was a milestone for one of the most important practical

projects aimed at improving the situation for small-scale miners

and serves as a strong motivation to this community.

• Capacity building in the division is supported by the project of

technical co-operation between the BGR and the Geological

Survey. Besides ongoing intensive training on-site, the project

partners decided to expand the bursary scheme of the project

substantially in order to meet the need for human resources in

the Geological Survey. Six MSc and nine BSc studies as well as

two BTech studies are supported in the reporting period. The

overall number of BGR-scholarships has increased to a total 20.

3. Stimulate investment in Namibia’s mining sector in

order to contribute to the development of Namibia’s

economy

• The Regional Geoscience Division provided stakeholders from

the exploration and mining sector, agriculture, research and

environment with information on issues of geological mapping,

as well as customised maps according to clients’ specifications.

• The Economic Geology Subdivision continued compiling reports

for the Mineral Information Series, planning the Earth Data Na-

Calcret e His Excellency Dr Sam Nujoma at the ground-breaking ceremony of a market for

Erongo and Spitzkoppe miners


mibia database structure and entering data into the database

(i.e. scanning of maps, grant reports and other documents). At

the same time it provided services to mineral investors, other

directorates and ministries, as well as members of the public.

The division also participated in investment promotion by at-

tending and mounting exhibitions at the Prospectors and Devel-

opers Association of Canada (PDAC) in Toronto, Canada, and

the Mining Indaba in Cape Town, South Africa.

• The Economic Geology Mineral Resources Information Series

project is aimed at summarising archived exploration data in

brief but comprehensive reports, describing all exploration

results and details of mineral occurrences investigated, as well

as entering this information into the Earth Data Namibia data-

base. Work on these reports is ongoing, with two more re-

ports, Grünau 2718 and Steinhausen 2118, currently under

review. Other reports are in preparation: Windhoek 2216 and

Kuiseb 2314. Reports on Rehoboth 2316, Walvis Bay 2214 and

Fransfontein 2014 have been put on hold, pending the recruit-

ment of new staff.

• Entering the data into the Namibia Database continued. A total

of 1,190 documents, including maps and reports, were scanned

and entered during 2007. A total of 824 maps and reports were

checked for their correct entry into the database. Entry of min-

eral deposit data will continue as accurate mineral deposit posi-

tions become available from the ongoing compilation of infor-

mation series. All licence and claim shape files are obtained

every first week of the month from the Mining Commissioner’s

office in digital format. These shape files are re-projected to

WGS84 and entered into the Namibia Database. A total of 386

licences were added to the database during the year under re-

view, and the status of 369 licences were updated, while infor-

mation documenting 1,323 missing licence holders was entered

into the database. All mineral occurrences included in eight

1:250,000 current sheet areas are in the process of being en-

tered into the database and will include the updating of the

Mineral Map of Namibia.

• The National Core Archive currently holds the cores of 1,052

diamond drill boreholes. Cataloguing of the underground water

chip samples is underway in the core shed. These samples will

be entered into the core shed spreadsheet. The construction of

new core shed at the Tsumeb Geophysical Station was com-

pleted in June 2007. The building must now be equipped with

shelves, a reach truck and pallets. The Tender Board approved

the pallet tender. The two remaining tenders for the shelves

and the forklift await the approval of the Tender Board.

• A number of conferences were attended to promote Namibia’s

mineral wealth, such as the Southern African Institute of Mining

and Metallurgy’s base metals conference in Swakopmund. This

was the fourth base metals conference in southern Africa after

prior meetings in Zimbabwe, South Africa and Zambia. A four-

day seminar on mining investment policy for base metals in

southern Africa was attended in Windhoek. The seminar was

jointly organised by the International Lead and Zinc Study

Group (ILZSG), the MME and the Common Fund for Com-

modities (CFC), in association with the Chamber of Mines of

Namibia. The seminar consisted of presentations by participat-

ing countries as well as by organisations. One staff member also

attended a course on geological mapping and mineral informa-

tion management in Kosaka, Japan. The course was organised by

the Japanese International Co-operation Agency (JICA) for Afri-

can countries, and focused on analysing the current mining

trends on the world market, the lack of natural resources and

the ever-growing demand for raw materials. A member of staff

attended the Women in Mining Colloquium in Johannesburg,

South Africa. The event was organised by the Department of

Minerals and Energy (DME), MINTEK, the Centre for Sustain-

ability in Mining and Industry (CSMI), the Council for Scientific

and Industrial Research (CSIR) and the University of the Wit-

watersrand. The colloquium aimed to explore the progress

made and the problems experienced by women in formal and

Economic Geology Mineral I nf ormation Ser ies


artisan mining sectors. Over 160 people, mostly women, work-

ing in formal mining, artisan mining and community activism

attended the forum. Most of the participants came from the

host country, South Africa, while other countries represented

included Namibia and Zambia.

• The Economic Geology section of the MME’s website

(www.mme.gov.na) has been updated and now contains infor-

mation on all of Namibia’s mineral resources including dia-

monds, uranium, gold, base metals, rare metals, industrial min-

erals and dimension stones. This provides potential investors

with information on the country’s mineral potential.

• One of the major tasks of the Geochemistry Division is render-

ing analytical services and advice to the public, including small-

scale miners, farmers, university students, public institutions,

mining companies, gemstone dealers and tourists. The laborato-

ries of the Geological Survey of Namibia are equipped with

international-standard instruments for mineral identification

(XRD), determination of elemental composition (XRF, ICP),

rock preparation (cutting saws, polishing machines), sample

preparation (hydraulic press, Phoenix fusion fluxer and fur-

naces) and measuring physical properties (microscopes, devices

for mineral separation and many more). Besides the samples

from Geological Survey projects, 281 samples were analysed for

stakeholders. For mineral identification, an X-Ray Diffractome-

ter (Bruker AXS, D8 Advance) is used. The detection limit is

kept low by using silicon sample trays, a graphite monochroma-

tor and a powerful software (D8 ADVANCE) and spectral data-

base. A total of 43 samples were analysed. The Geological Sur-

vey of Namibia runs two major instruments for chemical analy-

sis: A wavelength dispersive X-Ray Fluorescence Spectrometer

(WD-XRF; Philips PW 2404) and an Inductively Coupled Plasma

Emission Spectrometer (ICP-AES; Varian Liberty 110). Semi-

quantitative analyses of rocks, sediments and soils are per-

formed using two portable energy-dispersive X-Ray Fluores-

cence Spectrometers (ED-XRF; Niton Xlt 700). A total of 72

samples were analysed by ED-XRF, and four samples by ICP-

AES.

• In addition to several diamond rock saws and manual polishing

tables, the division owns an automatic lapping and polishing

machine (Logitech LP50). These devices are used to produce

high-quality polished and covered thin sections for petrographic

analysis, as well as core cutting and polishing of rock slabs. For

microscopic analyses, two fully equipped polarising microscopes

(Olympus BX51; Leica Laborlux 12 Pol) are available. In 2006,

238 thin sections were prepared, 557 samples cut, and 36 sam-

ples polished.

Participants at the Colloquium on Women in Mining in Johannesburg, Sout h Af rica

Fusion Fluxer

Diamond Saw


4. Create awareness of the earth sciences in order to en-

hance the understanding of the geo-environment and

its interaction with the life-supporting system of the

Namibian people

• A series of informative posters was compiled for Namibia’s

national contribution to the International Year of Planet Earth

(IYPE) initiative and for career guidance exhibitions, at which

Geological Survey staff members participated in promoting the

geoscience profession to students from secondary schools and

tertiary institutions. The educational posters can be

downloaded from the Geological Survey’s website.

• The National Earth Science Museum has received over 418

visitors, excluding school pupils and university students. Tours

have been given to University of Namibia (UNAM) students,

pre-primary, primary and secondary school pupils from all over

the country, promoting the earth sciences to Namibians.

• A three-day career guidance exhibition at Akademia School was

attended and special educational posters were created on the

importance of geology in Namibia and everyday life. The focus

was to promote geology as a career to Grade 11 and 12 pupils.

• In the museum, the original paintings by artist Christine Marais

were obtained on loan from Namdeb and can be viewed by

visitors. A rock garden with unique rocks from all over Na-

mibia, featuring an old Tsumeb Mine cocopan and a meteorite

mounted on a sodalite cube, was created. A set of diamond cuts

was added to the Namdeb display and a new display was put up

featuring the fossils that were found at the Etosha National Park

by a French palaeontological team and UNAM PhD student

Martin Hipondoka.

• The French-Namibian palaeontological team has continued its

research in the Sperrgebiet and the Etosha National Park,

where new Miocene mammal and invertebrate fossils have been

discovered. Extensive collections of marine invertebrate fossils

in the Skeleton Coast Park, as well as plant fossils from the

Ongongo Springs were added to the collection.

• In order to foster institutional co-operation between the Na-

tional Earth Science Museum and international research institu-

tions, assistance has been rendered to the University of Iowa

with research on a Namibian fossil crocodilus specimen from

Arrisdrift on the Orange River and to the Transvaal Museum

with research on Namibian aardvark fossils from the Sperrge-

biet.

• A book launch was held in the museum on the 17 September

2007. The book, Namibia: Minerals and Localities, was published

by Bode Verlag and contains contributions from the Director of

the Geological Survey. The launch was well-attended by miner-

alogists and mineral collectors from around the country and the

world.

Rock Cycle Poster available at htt p:// www. mme.gov.na/ gsn

The French/ Namibia Paleont ological Team


The following constraints were encountered while execut-

ing the above duties:

The Geological Survey is experiencing the same constraints as in

previous years. Despite enormous efforts, the extremely low staffing

level of 50 per cent could not be improved. Of particular concern is

the continued lack of experienced geologists in middle management,

and the unabated loss of experienced people to industry, particularly

among those that received bursaries through the Geological Survey

and are now highly trained, and among the highly experienced staff

members.

With the increased levels of exploration in Namibia and numerous

new mines opening, low-paid Government geologists are taken up in

alarming numbers by industry, where they increase their salaries

three-fold. With a global shortage of geoscientists, we no longer

compete against the local industry only, but also against the interna-

tional job market. A decision by the Ministry of Finance not make

funds available to fill the new structure is still in place and hampers

development, while the division continues to experience extremely

low salary levels compared to industry.

A re-grading of geologists’ positions requested earlier in 2007 re-

mains unresolved by the Office of the Prime Minister. Likewise, the

extremely long periods required for the recruitment of staff – in

some cases more than one year – results in a loss of applicants who

take up employment elsewhere. As a result, we are unable to fill all

positions with Namibian geoscientists. The two-year contract of-

fered to foreign scientists poses another constraint, as this period is

too short for meaningful contributions to be made.

Future Outlook

The application of earth sciences in supporting wealth creation, qual-

ity of life and laying the foundations for a sustainable future is of

ever-increasing importance for civil society. The Geological Survey

plays a crucial role in achieving these goals, enshrined in the second

National Development Plan and Vision 2030, in both geo-scientific

research and its application. We will endeavour to meet this chal-

lenge and continue with our programmes. To be successful, how-

ever, will require a drastic change in the situation described in the

previous paragraph.

Hon. Erkki Nghimtina (centre) at t he Namibia: Minerals and Localities book launch


The Directorate of Mines endeavours to promote the optimal exploitation

of Namibia's mineral resources and integrate the mining industry with

other sectors of the economy for the socio-economic development of the

country.

The major objectives for the Directorate of Mines for the

year under review were to:

• Finalize revision of the legal framework and to make it competi-

tive and conducive to promote investment.

• Ensure that the mining industry continues to be integrated with

other sectors.

• Ensure that the mineral resources are exploited in a safe, re-

sponsible and sustainable manner.

• Ensure that a vibrant and sustainable Small Scale Mining Sector is

in place.

• Ensure that value for money and customer orientated services

are rendered in an efficient, timely and comprehensive manner.

The following achievements were reached under the objec-

tives above.

1. Finalize revision of the legal framework and to make it

competitive and conducive to promote investment.

• Revision of the Minerals Bill has reached an advanced stage and,

once completed, will be submitted to the legal drafters at the

Ministry of Justice for finalisation and preparation for submission

to Parliament. It is anticipated that this exercise will be com-

pleted during the financial year 2009/2010.

• The Government Gazette of December 2006 on royalties has

been implemented and monies are being collected, in favour of

the State Revenue Fund, on all other minerals other than dia-

monds and dimension stone on which royalty payments have

been in effect prior to the gazette.

• Areva NC, a French state-owned uranium giant, took over 100

per cent of Uramin Namibia shares and continues to explore

the viability of opening the third uranium mine in Namibia. An

application for a mining licence at Trekkopje and Klein Trek-

kopje by this company is under consideration. The company is

busy with trial mining on a 60,000 ton heap leach project and

commercial production is expected to commence in the third

quarter of 2009. The company has also committed to construct

a desalination plant to produce 25 million m3 of water per an-

num for the mine at Wlokatzbaken. Forseys Metal’s Valencia

project has advanced to a mining license application, also now

being considered.

Directorate of Mines

Langer Heinrich Uranium Mine

Mr. Erasmus Shivolo, Direct or of Mines


• Three projects earmarked for cement production (Ohorongo

Cement at Otavi, Cheetah Cement at Otjiwarongo and Karibib

Portland Cement at Karibib) are all at feasibility stage. All pro-

jects have been issued with mineral rights at least for the last

two years.

• A total of 456 non-exclusive prospecting licences were issued,

200 exclusive prospecting licences granted, 223 mining claims

registered and seven mining licences were awarded during the

period under review.

2. Progress made in the field of mining during the year

under review.

• Weatherly Mining Namibia has embarked upon a growth plan

and is in the process of rebuilding geological models in order to

re-evaluate mineralisation in the licence areas. The company has

undertaken a study to determine the cause of high water pres-

sure underground in the Kombat area that led to the mine being

flooded and eventually closed. This action forms part of the plan

to resume mining operations there. Weatherly further plans to

set up a sulphuric acid plant by 2010 for its metallurgical proc-

esses, while excess acid will be available for the local market.

• The production from the Matchless Copper Mine near Wind-

hoek is forecast to compensate for the recently closed Kombat

operations and, hence, some employees and equipment will be

relocated to the Matchless Copper Mine.

• Langer Heinrich Uranium operations achieved the stated produc-

tion target for the quarter ended December 2007. Significantly,

the mine is now expected to produce at its design capacity of 2.6

million pounds of uranium oxide (U3O8) for 2008. An expansion

plan exercise has been commissioned to increase production.

3. Ensure that the mining industry continues to be inte-

grated with other sectors.

• Roach Investments, a subsidiary of Stone Africa, which holds

several marble and granite mining licences, opened a cutting and

polishing company in Walvis Bay to process granite into slabs

and tiles for local and international markets.

• Skorpion Zinc Mine and Refinery produced a record 150,000

tons of special high-grade zinc during the period under review.

• Regular field inspections were undertaken for the collection and

verification of production, sales and exports. The data is used to

compile quarterly and annual reports about the performance of

the mining and minerals industry.

• The Directorate of Mines scrutinised documents and applications

to ensure that uranium ore and concentrates originating from

Namibia are subjected to national and international safeguards as

specified by the International Atomic Energy Agency and EURA-

TOM treaties. Material exported pursuant to Article 33(a) from

Namibia was therefore solely authorised for use for peaceful

purposes and not diverted to, for example the proliferation of

nuclear weapons or other such restricted purposes. Namibia

Ms. Helena Itamba, Deputy Direct or of Mines, and Mr. David Hutchins, Chief Geo-

physicist, Geological Survey, at Malvesi, Comurhex st orage f acilit y in France.

The drums in t he background contain U3O8 f rom t he Rössing Uranium Mine.

Messrs Linus Mulele, Chief Engineer, and Matheus Amunghete, Chief Inspector of Mines, both of

the MME, in discussions with mine workers


remains a safe, significant and long-term supplier of uranium

concentrate to the nuclear power industries in the world.

• The Mining Directorate rendered advice, particularly on local

and international developments, with regards to markets, ad-

vanced mining and mineral development technologies and ten-

dencies in the field of mineral commodities.

• Mineral statistical data has been collected, analysed, verified,

compiled and disseminated on a monthly, quarterly and annual

basis to the National Bureau of Statistics; Bank of Namibia; Inter-

national Lead, Zinc and Copper Study Group; the United States

Geological Survey (USGS); British Geological Survey (BGS);

World Bureau of Metal Statistic and International Atomic Energy

Agency amongst other institutions, for calculation of gross do-

mestic product (GDP), balance of payments, mining’s contribu-

tion to the economy and verification purposes.

• The Directorate of Mines participated in Namibia’s Bilateral Co-

operation discussions with other countries and provided input

on mining and mineral-related matters during the period under

review. Such interventions have contributed to the surge in for-

eign investment in the minerals sector.

4. Ensure that the mineral resources are exploited in a

safe, responsible and sustainable manner.

• The new Environmental Management Act of the Ministry of Envi-

ronment and Tourism will supplement the Minerals (Prospecting

and Mining) Act and its regulations to ensure that thorough envi-

ronmental assessment studies are concluded before projects are

undertaken.

• The Directorate will also continue to maintain its membership of

committees of the Chamber of Mines of Namibia to discuss and

address mine health, safety and environmental issues.

• Two fatal mine accidents were recorded, procedurally investi-

gated and the reports forwarded to the Office of the Prosecutor

General in March 2007. A total of 39 reportable injuries of not

too serious nature and one serious injury were also recorded

during the period under review. Other reportable non-casualties

were in the form of vehicle accidents and runaways as well as

mine floods.

• A serious fire accident was recorded at one of Namdeb’s

diamond recovery plants with no human casualty involved.

• A serious and complex mine flood was recorded at Kombat

Mine during the second half of 2007 that led to the mine closure.

A technical team comprising of Weatherly Mining, the MME, the

Mineworkers’ Union of Namibia, NamWater and NamPower has

been constituted to deliberate options of reopening the mine.

5. Ensure that a vibrant and sustainable Small Scale

Mining Sector (SSM) is in place.

• A proposal was submitted to the Public Service Commission to

upgrade the SSM sub-division to a fully fledged division. The pro-

posed structure will attend to the issues and plight of the small-

scale miners in a dedicated manner.

• Five projects suitable for small- and medium-scale miners were

initiated and the feasibility studies are to be completed in the

financial year 2009/2010.

• A grant of N$200,000 was secured from the Spanish Co-

operation for the tin- and tantalite-buying scheme from the small

miners at Uis. The Directorate of Mines together with the small

miners of Uis will manage the grant.

• Under the supervision of the Directorate, an agreement be-

tween Induberg Namibia Pty (Ltd) and Small Miners of Uis (SMU)

has been signed for the refurbishment and reinstallation of the

pilot plant at Uis. This will assist the development of SSM activi-

ties and training for Brandberg Co-operative members. To that

Mr. Samson Nghit eeka, I nspect or of Mines, assessing the saf ety of a trench in t he

Hart mann Mount ains, Kunene region


effect, mining licences belonging to SMU have been temporarily

transferred to Induberg Namibia Pty (Ltd). As a result SMU has

been offered a 15 per cent share in the company and an addi-

tional 2.5 per cent of sales produced from these licences will be

paid to the SMU Trust Fund.

• The Mineral Development Fund (MDF) has continued to provide

financial assistance to medium-scale miners who were able to

provide viable business plans.

6. Ensure that value for money and customer orientated

services are rendered in an efficient, timely and compre-

hensive manner.

• Several staff members attended training courses, symposiums,

seminars and short courses both locally and internationally to

improve their skills and knowledge, and thus deliver better ser-

vice to the public. The directorate also participated in career

fairs to encourage young Namibians to develop an interest in the

relevant minerals-related disciplines.

• The Minerals Development Fund awarded 15 bursaries to young

students to start their careers in minerals and mining-related

fields at the Zimbabwe School of Mines.

7. The following constraints were encountered while exe-

cuting the directorate’s objectives:

• Funds allocated to the Directorate of Mines were insufficient to

carry out all the field inspections as required and at times only

the most important and urgent trips could be carried out.

• No submission and/or delayed submission of monthly/annual

returns by some operating mines. This is a statutory compliance

that is difficult to enforce, particularly with the small miners.

Casual reporting and, sometimes, incorrect production and sales

figures are forwarded to the Directorate.

• Although claiming not to object to the payment of royalties,

some companies have disputed the implementation of the ga-

zette of December 2006 and have not yet paid royalties to date.

Reconciliation of figures as estimated for royalty contributions

with the actual amount collected is therefore not entirely accu-

rate.

• Improper/incomplete organisation of small-scale mining activities

across the country means that small-scale miners in some re-

gions are unable to benefit from technical or financial assistance

channelled through the MME.

• A reduction in the frequency of mine inspections has been ex-

perienced due to an increased number of operating mines. Dis-

agreements between mining operators and farm owners have

pre-occupied staff in an attempt to resolve disputes. This has

been exacerbated not only by budgetary restrictions, but also by

the inability of the Directorate to attract qualified engineers and

inspectors of mines, especially for marine mining operations, and

machinery due to the low remuneration packages as compared

to the private sector.

• Skills shortages and frequent resignations negatively impacted on

the overall performance of the Directorate of Mines.

• The Transformation of Economic and Social Empowerment

Framework (TESEF) is not yet complete, making it difficult to

compel or require foreign companies having or wishing to ac-

quire mineral rights to have broad-based empowerment partici-

pation.

• The process of awarding mineral licences as well as the admini-

stration of some legislation has experienced a number of legal

challenges that are time consuming to the technical staff of the

Directorate. It would be appropriate to recruit a dedicated legal

officer in the MME to handle legal matters as they arise.


The Directorate of Diamond Affairs is the national establishment charged

with the responsibility of monitoring and regulating the Diamond Industry,

in Namibia, in order to protect it from the threats of smuggling and other

illicit activities. Its other core duties include promoting the diversification

and integration of the diamond industry into the rest of the economy, in

order to maximize its contribution to the socio-economic development of

Namibia. The Directorate strives to maintain complete oversight over all

exploration, mining as well as diamond manufacturing activities in the

country, in order to ensure compliance with the provisions of the Diamond

Act of 1999 and its subsidiary regulations, as well as compliance with the

requirements of the Kimberley Process International Certification Scheme

for the import and export of rough diamonds. While its headquarters are

at the Ministry of Mines and Energy in Windhoek, the Directorate is also

extensively decentralized with logistical bases (offices and accommodation)

in Luderitz, Swakopmund and Oranjemund, in proximity to the bulk of

mining and prospecting operations.

The objectives for the directorate Diamond Affairs for the

year under review were as follows:

1. Ensure that Diamond licences are allocated in accordance with

the provisions of the Diamond Act (Act 13 of 1999).

2. Issue import and export permits on a timely basis. 3. Manage and use modern information systems to communicate,

share and process diamond information and data.

4. Issue Restricted Area (Section 27K) permits.

5. Ensure compliance with the Kimberley Process. 6. Ensure the effective and efficient control of the handling and

transportation of rough diamonds in Namibia.

7. Promote the growth, stability and viability of the Namibian down-stream diamond industry.

8. Ensure that the valuation and sale of Namibian diamonds meets internationally acceptable standards.

9. Uphold the good image of the Namibian diamond industry. 10. Provide valuable advise to the Permanent Secretary and Ministers.

Accordingly, the following Regulatory Strategies were im-

plemented to meet the above objectives;

1. Carried out our duties in line with the Diamond Act and its

Regulations.

2. Ensured the availability of Diamond Inspector(s) at the sealing

and opening centres upon request.

Directorate of Diamond Affairs

Mr. K. Hamutenya, Diamond Commissioner, Diamond Affairs

A local diamond cutt ing operation


3. Ensured presence of Diamond Inspector(s) during Diamond

Evaluation.

4. Conducted inspections at mine sites and mining vessels at least

once a month.

5. Conducted inspections at cutting factories on a regular basis.

The following achievements were accomplished during the

year:

• Ensured the effective and efficient control of handling and trans-

porting of rough diamonds in Namibia in line with the Act.

• Namibia has been elected as the Vice Chair (2008) of the Kim-

berley Process International Certification Scheme for the import

and export of rough diamonds and will chair the process in 2009.

• The Directorate’s database is up and running.

• 149 KPC’s were processed: 52 were issued for exports and 97

for imports.

• A new agreement has been reached between De Beers and the

Namibian Government, which makes provisions for the supply of

rough diamonds to the local diamond manufacturing industry.

The new Agreement would ensure that 16% of cut able rough is

supplied to the local industry.

• The Directorate is still spearheading a campaign against “blood

diamonds” – Namibian Diamonds are legitimate and contribute

to the country’s socio-economic development.

• 16 Factories have now been established and commissioned in

Namibia.

The following constraints were encountered while executing the above objectives: • Rough Diamonds supplied to local Industries not all processed in

Namibia yet (skills shortage).

• Special Stones are all exported but could be polished locally.

• Royalties and Export duties on diamond are set by the Minerals & Diamond Acts respectively and could only be reviewed with the amendment of the Act.

• Manpower is a huge concern, but is being addressed.

• Short notices are received from companies requesting our ser-vices.

• A few licensees find it hard to be good corporate citizens and are reluctant to play by the rules.

• The budget is not sufficient to enable us to meet our objectives

effectively. • Our vehicle fleet is old and wear and tear is extensive due to

long distances traveled in rough terrain. • Difficulty visiting operations at sea as we depend on operators to

transport us there.

Contract or Boat


Month Carats SSV—N$ Royalty—N$

Jan / Feb 478, 292.88 1,510,203,466.19 134,023,238.83

Total 478, 292.88 1,510,203,466.19 134,023,238.83

Royalty paid by producers 2008

Month Carats SSV—N$ Royalty—N$

Jan / Feb 2,062,311.11 4,967,936,079.02 580,516,171.59

Total 2,062,311.11 4,967,936,079.02 580,516,171.59

Royalty paid by producers 2007

The Energy Directorate develops and implements Government’s energy policy by realizing Government’s commitment to efficiently supply, secure, reliable and competitively priced energy to all sectors of the economy within the constraints of the competing demands of social equity and environ-mental sustainability on a short, medium and long term basis. The objectives projected by the Energy Directorate for the year under review were as follows:

1. Improved & harmonized legislation & regulations

2. Reduced Red Tape

3. Improved Licensing in the Energy Sector

4. Improved Regulation of Exploration & Production

5. Improved Health, Safety & Environment

6. Increased Use of Renewable Energy

7. Increased Energy Generation, Strategic Storage & Energy Export

8. Strengthened Transmission Networks

9. Enhanced Rural Electrification

10. Reliable, Affordable & Cost-Reflective Energy

11. Promoted Value-addition of Oil and Gas

12. Reduced number of Accidents in the Energy Sector

The following achievements were reached under the objec-tives below: Improved Licensing in the Energy Sector

• An exploration licence was issued to Kunene Energy, a local oil

company, to explore for oil and gas in Blocks 2713A and 2713B.

• A new petroleum exploration licence application by Labrea

Petroleo was under negotiation.

• The fuel industry experienced substantial growth, which is re-

flected by growth of 2.5 per cent in retail licences, 34.4 per cent

in wholesale licences and 1.2 per cent in consumer installation

certificates issued during the financial year under review.

Improved Health, Safety & Environment

• Two inspections of drilling rig/vessels operating in Namibia have

been conducted.

• A total of 181 site inspections were conducted on different fuel

wholesale and retail sites.

• No prominent accidents were reported during the drilling pro-

gramme at Kudu field.

• Fuel sold illegally at prices higher than the gazetted price were

reported and confiscated by the Namibian police.

Directorate of Energy

Mrs. Selma-Penna Ut onih, Direct or of Energy

Graph of Licences Leased 2007 - 2008


Increased Use of Renewable Energy

• A total of 600 solar systems to the value of N$11,084,562.20

were funded within a period of two years (2006-2007). The So-

lar Revolving Fund currently holds a commitment of 800 backlog

applications that are awaiting funding amounting to N$16,2 mil-

lion. N$200,000 was used to procure relevant demonstration

units of solar systems to support the promotion of renewable

energy technologies (RET) at regional level for all 13 regions. An

amount of N$200,000, carried over from the previous financial

year (2006/2007), was fully utilised during the period under re-

view for the marketing of wooden stoves in the Hardap, Khomas

and Omaheke regions.

• A co-operation agreement on wind resource assessment and

community centres has been signed between the Renewable

Energy and Energy Efficiency Institute (REEEI), hosted at Poly-

technic of Namibia, and Mobile Telecommunication Corporation

(MTC).

• In September 2007, REEEI launched a demonstration wood gasi-

fier at the Habitat Research and Development Centre. The Insti-

tute has developed a syllabus on Energy Systems Management for

the post-graduate programme, Masters in International Business.

The syllabus was approved by the Polytechnic of Namibia’s Sen-

ate and has since been adopted by the business school. The Insti-

tute has initiated and is part of the team assembled to draft the

new national Energy Regulatory Framework.

• Website management and web design training was conducted to

all REEEI staff by the Polytechnic of Namibia in 2007. A work-

shop was conducted in November 2007 to solicit comments

from stakeholders on the Energy Efficiency Strategic Action Plan.

• In June 2007, Cabinet approved the implementation of an Off-

Grid Energisation Master Plan and directed that all Government

and parastatal buildings’ hot water requirements should be met

through the installation of solar water heaters only.

Illegal f uel sales at prices higher t han t he gazetted pr ice

Dr illing r ig at Kudu f ield

The use of solar energy in rural area


• In September 2007, a stakeholders’ workshop was held on the

Renewable Energy Macro-Economic study. A special presenta-

tion was made in December 2007 to the MME Permanent Sec-

retary and the Managing Director of NamPower.

Increased Energy Generation, Strategic Storage & Energy Export

• During the year under review, the national oil company, Nam-

cor, completed market and site feasibility studies for the bulk

storage facility.

• Since early January 2008, Namibia started receiving the first 40

MW of electric power from the Hwange Thermal Power Plant

in Zimbabwe.

Strengthened Transmission Network

• A tender was awarded by NamPower to two international com-

panies Jyoti and KEC, which subcontracted local companies

such as ABB Namibia and Powerline 2000 for the construction

of DC converter stations and a High Voltage DC line for the

Caprivi Link Project. Enhanced Rural Electrification

• As a result of Government’s efforts towards achieving 25 per

cent access to electricity in rural areas of Namibia by the year

2012, 550 villages have so far been connected to the national

electricity grid at a total cost of more than N$350 million. A

total of 43 of these villages were connected in 2007. Currently,

only about 17 per cent of rural Namibians have access to elec-

tricity. Reliable, Affordable & Cost-Reflective Energy

• The pre-feasibility study for a refinery has been completed and

the MME granted approval to the national oil company, Nam-

cor, to promote the project to potential investors.

• During 2007 the National Energy Fund, which can and has been

used to smooth the impact of spikes in the price of fuel and to

fund the road subsidy claims, paid an amount of N$74 million in

respect of fuel price equalisation and fuel transport subsidies.

• The distribution of fuel to far remote areas during 2007 ac-

counted for 28 per cent of the total amount spent from the

National Energy Fund (NEF).

• The national oil company secured a contract with Afroneft, a

subsidiary of an international company Glencore, to procure

and import 50 per cent of the country’s petroleum require-

ments from sources other than South Africa.

Rural Electr ificat ion

NEF Expenditure t owards Fuel Price Equalization and

Fuel Road Transport Subsidy - 2007


Fuel subsidy by National Energy Fund

The following constraints were encountered while execut-ing the above objectives

• Lack of commitment from some of the licence holders resulted

in work programme obligations not being fulfilled.

• The absence of local geological service providers hinders the oil

companies’ performances.

• Lack of oil-rigs internationally might delay drilling of wells in

future.

• Lack of co-operation from the oil industry with regard to sub-

sidy administration issues.

• Insufficient operational budget has negatively affected work

programmes.

• The 2007/2008 Rural Electrification projects in Caprivi, Erongo,

Hardap, Karas, Kavango, Kunene, Ohangwena, Oshana and

Otjozondjupa could not be implemented due to a lack of tender

offers, the disqualification of contractors due to technical in-

competence and inexperience and unrealistically high tendered

prices. The National Tender Board cancelled and re-advertised

these tenders, but this did not bring the desired results. Instead,

the MME was left with no choice but to transfer the budget

allocated to these abovementioned regions to only three re-

gions (Omahake, Omusati and Oshikoto) for the extension of

the scope of works there, since contractors were successfully

appointed and already on site for project implementation in

those regions. Other achievements

• The distribution of 600,000 Compact Fluorescent Light (CFL)

bulbs countrywide as a Demand Side Management (DSM) strat-

egy. This measurement was expected to reduce the national

peak demand by 12 to 20 MW.

• Neptune, BHP Billiton and Ina Industrija Nafte have carried out

seismic surveys in their respective licence areas during this year.

• Tullow drilled a well to test the upside potential of the Kudu

gas field. A second proposed well was not drilled due to unsat-

isfactory results of the first well, thus it will be drilled at a later

stage.

• Petroleum Exploration and Production staff attended the fol-

lowing training courses that are related to Petroleum: Applied

Health, Safety and Environment; Offshore Survival and Fire

Fighting; Oil and Gas Transactions; Negotiating, Contracting and

Dispute Management; Petroleum Operations and Development;

Petroleum Engineering; Reservoir Engineering; and 3D Seismic

Interpretation.

• Staff members of the Directorate attended a number of interna-

tional conferences to promote Namibia. These include the in-

ternational conferences of the American Association of Petro-

leum Geologists (AAPG), Africa Upstream, Africa Energy Fo-

rum, and Petroleum Exploration Society of Great Britain.


The Directorate provides essential and indispensable services for the

smooth running of the Ministry, such as professional and quality administra-

tion and financial services to the four technical directorates, the Office of

the Permanent Secretary as well as the Office of the Minister.

Objectives of the Directorate of Administration and Finance

for the financial year under review:

1. Provide efficient and effective financial services.

2. Coordinate the efficient and effective management of logistics

and assets.

3. Coordinate recruitment, development and Management of hu-

man resources.

4. Manage and use information systems to communicate, share and

process information and data.

5. Provide a professional and customer focused service.

The achievements of the Directorate of Administration and Finance for the financial year under review:

1. Provide efficient and effective financial services • Monthly expenditure reports were circulated to each director-

ate and presented to management on a quarterly basis to assi st directorates in managing their budgets efficiently.

• Notably, the MME did not exceed the budget ceiling limit set by

Parliament, and capital projects were executed at a rate of 90 per cent and above.

• By implementing the necessary procedures and putting the ap-

propriate committees in place, the MME managed to comply with the State Finance Act, Tender Board Procedures, and sub-sistence and transport (S&T) guidelines.

2. Coordinate the efficient and effective management of

logistics and assets. Stock

• Very few deficiencies were detected during our annual stocktak-ing, indicating that staff are adhering to stock-control procedures and that the training of stock officers received is bearing fruit.

Security

• Upgrades and extensions were made to the Video Surveillance

System in the MME to improve overall security and safety. Maintenance

• A new tender for the kiosk was awarded to enable staff to pur-chase lunch and other refreshments, as the MME is situated far from the central business district (CBD).

• Renovation of the MME building is in progress and some areas have already been completed. Funds have been budgeted to complete the project by the end of the financial year.

• A private company has been contracted to keep the MME’s

premises clean and tidy. Transport • Routine administration and maintenance of the transport fleet

were done throughout the financial year. 3. Coordinate recruitment, development and management

of human resources.

• The MME managed to keep the establishment filled at 80 per cent despite the high staff turnover and other contributing fac-tors.

• The MME has met the target for numerical goals set up in the

Third Affirmative Action Plan for 2007/2009 for female staff members in senior management cadre positions. In addition, an Affirmative Action Compliance Certificate was awarded to the MME during 2007.

• Four staff members within the MME were promoted to manage-

ment cadre positions. •

Directorate of Administration & Finance

Mr. John Tit us, Director of Administration & F inance


• The MME granted study leave with full remuneration to 10 staff

members (all geoscientist s) to study towards BSc. (Hons) de-grees. All candidates successfully obtained their qualifications and nine of them have been promoted to the level of either principal geologist or geochemist.

• Two HIV-AIDS Information Sharing Days were held and dona-tions were made in cash and kind to 20 ‘positive living’ people in Katutura. MME staff commemorated World AIDS Day through prayer and motivational words.

• An HIV-AIDS Workplace Programme was introduced at the

MME and induction courses for new recruits were held on a regular basis.

4. Manage and use information systems to communicate, share and process information and data. • Since October 2007, the MME’s website features a website

statistics measurement system. The Absol Stat System pro-vides information on the number of site visitors and unique site visitors, visitor information, system information, coun-try information, search engine phrases and referrers.

The impression summary for the last six months is as follows: Total impressions: 26,743 Average impressions: 2,228 per month Peak month: February 2008 (5,703 imp.) Low month: October 2007 (3,108 imp.) Unique user summary for last six months: Total unique visitors: 5,186 Average unique visitors: 432 per month Peak month: February 2008 (1,019 unique users) Low month: October 2007 (673 unique users)

• A new training opportunities sub-section has been added to the

staff section of the MME’s Intranet site. This section will feature courses, short-courses and other training that may be of use to the professional development of staff.

• Apart from maintenance on users’ machines, i.e. replacing de-

vices or computer parts (CD drives, cards, memory modules etc), some updating was also done, including formatting and rein-stalling operating systems and all the relevant programmes, and rebuilding computers for new staff members. A substantial amount of computer support was provided for the users.

• The Information Technology Division employed four Polytechnic of Namibia Information Technology students and two UNAM Computer Science students. The students assisted in the installa-tion of software, configurations, upgrading and assembly on 62 new and old computers.

• Accurate and current records were kept on repair, diagnosis,

removal of equipment, appropriate logging and tracking of hard-


MME Staff at the HI V-AIDS I nformat ion Sharing Day

MME Web Sit e Visit or St at ist ics f or 2007 – 2008

ware malfunctions. • The refurbishment of close to 20 old computers, still in good

working condition, was done. This project was carried out with the purpose of retiring and donating computers to schools that are in need of computers.

5. Provide a professional and customer focused service

• In order to establish procedures to deal with complaints, sugges-tions and queries, complaint / suggestion forms were revised following input from staff. The forms are currently on display in public contact offices.

The following constraints were encountered while executing

the abovementioned objectives:

• Certain management positions were vacant, which negatively

influenced the achievements of some targets. • Delays in the implementation of the Performance Management

System (PMS) were experienced due to a failure to train a suffi-cient number of internal facilitators. A failure to obtain the Of-fice of the Prime Minister’s approval for the completed MME Strategic Plan also contributed to the aforementioned delays.

• The MME has experiencing difficulty in recruiting suitable local

candidates in the fields of geoscience and engineering, which in turn hampered the successful implementation of some capital projects.

• The absence of a retention policy in the public service and unat-tractive remuneration packages for technical personnel/staff working within Government contribute to the high staff turn-over experienced.


BGR Federal Institute for Geosciences and Natural Resources

BGS British Geological Survey

BHP Broken Hill Proprietary (as in BHP Billiton)

AAPG American Association of Petroleum Geologists

CC Closed Corporation

CBD Central Business District

CFC Common Fund for Commodities

CFL Compact Fluorescent Light

CSIR Council for Scientific and Industrial Research

CSMI Centre for Sustainability in Mining and Industry

CTBTO Comprehensive Test Ban Treaty Organisation

DC Direct Current

DME Department of Minerals and Energy

DSM Demand Side Management

ECB Electricity Control Board

EPL Exclusive Prospecting Licence

EPZ Export Processing Zone

ESI Electricity Supply Industry

GRN Government of the Republic of Namibia

GSN Geological Survey of Namibia

IAEA International Atomic Energy Agency

ILZSG International Lead and Zinc Study Group

IT Information Technology

IYPE International Year of Planet Earth

JICA Japanese International Co-operation Agency

KPC Kimberley Process Certificate

MD Managing Director

MDF Mineral Development Fund

MDRL Mineral Deposit Retention Licence

ML Mining Licence

MME Ministry of Mines and Energy

MSL mean sea level

MTC Mobile Telecommunications Limited

MW Mega Watt

Namcor National Petroleum Corporation of Namibia

Namdeb Namdeb Diamond Corporation (Pty) Ltd, owned equally

by the Namibian Government and De Beers Centenary

AG

NAMREP Namibia Renewable Energy Programme

NDF National Defence Force

NDP3 National Development Plan 3

NDTC Namibia Diamond Trading Company

NEF National Energy Fund

NORED Northern Regional Electricity Distribution Company

NYTC National Youth Training Centre

OPE Oshakati Premier Electricity

OPM Office of the Prime Minister

OSL Optical stimulated luminescence

PIMA Portable Infrared Mineral Analyser

PDAC Prospectors and Developers Association of Canada

PMS Performance Management System

REECAP Renewable Energy Efficiency and Capacity Building

Program

REEEI Renewable Energy and Energy Efficiency Institute

RET Renewable Energy Technologies

RSA Republic of South Africa

SME Small and medium enterprises

SMU Small Miners of Uis

SSM Small-scale mining

SSM Supply side management

UNAM University of Namibia

USGS United States Geological Survey

XRD X-Ray Diffractometer

XRF X-Ray Fluorescence

MINISTRY OF MINES AND ENERGY

REPUBLIC OF THE GOVERNMENT OF NAMIBIA

1 AVIATION ROAD

PRIVATE BAG 13297

WINDHOEK, NAMIBIA

TEL: 061 284 8111, FAX: 061 238 643, EMAIL: [email protected]

WEBSITE: http://www.mme.gov.na

Acronyms & Abbreviations

ministry of mines and energy annual report 2007/8 · 2008-10-21 · ministry of mines and energy...

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