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TRANSCRIPT
Mining Industry Performance in 2012.
Mining Conference, May 22, 2013.
Windhoek
Veston Malango, CEO.
THE CHAMBER OF MINES
OF NAMIBIA
Outline of Presentation
1) Highlights for 2012
2) Mining Industry Performance during 2012
3) Outstanding Issues
4) Conclusions
Highlights for 2012 – A basket of bad & good news
1) 5 Fatalities
2) AREVA announced postponement of launch of Trekoppje mine (October
2012). Project to be on care & maintenance from 2013
3) AREVA exported 250 tonnes of sodium di-uranate (Nov. 2012).
4) Rössing recorded significant losses for 3rd consecutive year (N$ 43m in
2010, N$471m in 2011 & N$ 474m in 2012)
5) Mining & quarrying sector grew by 11.2% in 2012. Industry contracted by
7.9% in 2011 (NSA)
6) MME granted 3 MLs (B2Gold, Shiyela Iron & Zhonghe Resources)
7) OHORONGO Cement received IIP
8) Environmental Management Act, 2007 & Regulations, became
operational (February 6, 2012).
9) Anglo American became majority shareholder in De Beers – with
purchase of the Oppenheimer stake
Highlights for 2012 (Cont’d)
10) Oranjenmund proclaimed as Municipality (Namdeb contribution to
infrastructure) – March 2012
11) Namdeb completed re-commissioning of Elizabeth Bay mine
12) DBMN produced 1.1 m carats in 2012 (990,000 Carats in 2011), highest
record to date: 1.048 m carats in 2007
13) DBMN purchases world’s largest marine diamond vessel -- mv Peace in
Africa (November 2012) & later renamed mv Mafuta (March 2013)
14) Swakop Uranium 100 % acquired by Taurus Minerals Limited. (April
2012) – CGNPC
15) Construction of Husab mine starts (October 2012) – World’s second
largest uranium mine.
Highlights for 2012 (Cont’d)
16) Epangelo acquires 10% in Swakop Uranium (November 2012)
17) BFS completed for Tschudi Copper project.
18) Weatherly announces intention to restart the Old Matchless
underground mine.
19) GRN accepted Value Addition Committee (VAC) proposal by CoM ,
adopted in NDP 4
Summary of Mining Industry Performance in 2012
• Turnover > N$18.52 billion ( 2011, 15.8 billion)
• Wages and salaries > N$2.93 billion (2011, N$ 2.5 billion)
• Fixed investment > N$3.33 billion ( 2011, N$1.3 billion)
• Exploration spending by operating mines > N$434.9m
• Exploration spending by exploration companies > N$380.4m (B2Gold
N$57.8 m, Bannerman N$51.7m, Reptile N$70.7m, Swakop Uranium
(N$76.2m)
• Profits tax paid > N$1.12 billion
• Royalties paid > N$957.7m
• Total taxes paid to GRN >N$2.08 billion
• 7,898 permanent employees, 474 temporary employees, and 5,176
contractors
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
1990 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
Mining Value Added in Current Prices (N$m)
Other Mining
Diamond Mining
Source: National Statistics Agency
0
2
4
6
8
10
12
14
16
18
20
1990 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '17
Mining Value Added as a Percentage of GDP
Other mining
Diamondmining
Source: National Statistics Agency
0
2
4
6
8
10
12
14
16
18
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Comparison of GDP contributions by Primary Industries
Mining
Agriculture
Fishing
Source: National Statistics Agency
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
Fixed Investment (current prices N$m)
Government
Mining
Source: National Statistics Agency
0
100
200
300
400
500
600
700
800
900
'95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
Exploration expenditure (N$m)
Source: National Statistics Agency and Chamber of Mines
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000
'93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
Mining Exports (N$m)
SHG Zinc
Other Minerals
Blister Copper
Metal Ores
Rough Diamonds
Source: National Statistics Agency
0 500 1 000 1 500 2 000 2 500
NIMT
Valencia
Swakop Uranium
Reptile Uranium
Otjozondu
Gecko
Craton
Bannerman
B2Gold
Weatherly Mining
Skorpion
Samicor
Salt Company
Salt & Chemicals
Rossing Uranium
Rosh Pinah
Okorusu
Ohorongo
Navachab
Langer Heinrich
Namdeb
DBMN
AREVA
Employment in Mining sector at end 2012
PermanentEmployment
TemporaryEmployment
Contractors
Total employment:13,548
With a multiplier effect of 7,
mining provided directly &
indirectly jobs to some
95,000 people
Projections 2017
4000 new jobs
8000 during construction
11000 permanent jobs – 2017
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
1990 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '17
Mining Employment (Chamber Class A, B and C members including NIMT)
Source: Chamber of Mines Annual Reports
0
500 000
1 000 000
1 500 000
2 000 000
2 500 000
1990 '91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
Diamond Production (carats)
Source: Chamber of Mines Annual reports
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
'91 '92 '93 '94 '95 '96 '97 '98 '99 2000 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '15/16
Uranium Production (Tonnes)
Langer Heinrich
Rossing
Source: Chamber of Mines Annual Reports
1 537
3 000
2 993
3 258
4 351
5 983
9 145
13 586
19 451
USA
Uzbekistan
Russia
Namibia
Niger
Australia
Canada
Namibia2015/16
Kazakhstan
Uranium producing countries for 2011 (tonnes)
Source: World Nuclear Association
Outstanding Matters
Export Levy: Export Levy Bill on way to Parliament, No response yet from
MoF on Chamber submission wrt. Levy rates.
Withholding tax: Minister of Finance announced plans to reduce rate from
25% to ?
Training levy 1.5%;
• Govt. Gazette 5171 of 11 April, 2013: Notice of intention to impose a levy,
30 days period for stakeholders to make submissions – until 10 May.
• Next Govt. Gazette to announce imposition of Levy: 1st August 2013
• Levy Implementation: 1st September 2013
• 1st Levy Payment and levy return form by 20th October 2013
Outstanding Matters
Tax regime for land based diamond mining : Needs revision to ensure
sustainability
Policy on strategic Minerals: Legislation still pending
Conclusions
Despite safety challenges, uncertainty in the industry, depressed
global economic markets (especially for uranium) and three years of
stagnant growth, Namibia’s mining industry is in full swing to recovery
With the commencement of five new operations in Namibia (B2Gold,
Husab Uranium, Tschudi, Zhonghe Resources, and Shiyela Iron) in the
next two to three years, the benefits to the Namibian economy will be
far greater than in previous years. - GROWING THE CAKE!!
Our Message – Enable us to Grow the Cake!