SP TLIGHT ON THURSDAY, 1 JULY 2021

A PUBLICATION OF 2 SPOTLIGHT ON MINING Thursday 1 July 2021 Navachab turns bleak prospects into gold

• ADAM HARTMAN being contractors. The total figure is The mine also supports expected to grow to 1 000 following infrastructure development and N 2018, QKR Navachab Gold the mine’s expansion projects. development at , and invests Mine at Karibib experienced its Kasale explained that expansion in education by supporting local Ibiggest challenge yet when it projects for the mine include the schools and by offering bursaries. became unsustainable to maintain implementation of the owner mining Following the advent of the operations in its former format, model, which will see the company Covid-19 pandemic, the mine threatening the very jobs and investing into a mining fleet worth responded with the construction livelihoods of some 500 employees, N$580 million up to and next year. of a quarantine facility at Karibib and its positive socio-economic This could see the recruitment of which is open to members of the impact on surrounding communities. 173 additional workers to operate public. The mine also donated masks, As a turn-around strategy, Project and maintain these machines and hand sanitisers and thermometers Khaima (‘let us rise’ in Damara), was equipment. to all local schools to enable classes launched to reduce operating costs, Another facet to the expansion is to resume safely. Besides this, it improve productivity and enhance the installation of N$770 million also helped provide food parcels revenue. At the time, Navachab was ARGO high pressure grinding to marginalised communities at running in the red and unable to mill and the increase of leaching the town, while helping refurbish access funding to keep or expand capacity. This will increase gold the Usakos hospital to enable it to PROJECT … The underground trial mine portal infrastructure. operations. production and create approximately accommodate Covid-19 patients. The intervention worked, and the 28 permanent jobs and around 100- Furthermore, Navachab launched fruit is becoming more evident. 150 temporar positions during the a ‘House to Home’ initiative in 2020 “Project Khaima was largely construction period. in which the mine is selling company successful in turning around The mine is also going underground houses to employees at sub-market Navachab into a self-sustaining at a cost of N$200 million, and gives valuation cost. operation. The success has work to about 100 people for this “This will support the long-term enabled a number of projects to be year alone. sustainability of the town long after implemented,” mine spokesperson “Because of the level of accuracy the mine is gone,” said Kasale, adding McLyn Kasale told The Namibian, of some of the major inputs into the that the mine is currently working adding that the success will also study, one of the recommendations with local authorities on broad- determine the future viability of from the conceptual study was to based projects aimed at benefiting Navachab Gold Mine. undertake a trial underground mine the local community through the Kasale said Navachab has been to substantiate the inputs of the establishment of a medical centre, able to raise funds to further develop study before a final decision on a and the servicing of residential its operations and increase the life full underground operation is made,” plots for low-cost housing and of the mine. The mine expects to explained Kasale. infrastructure development. invest over N$2 billion in various “The trial underground mine He said Navachab has not been projects over the next two years. was commissioned in February and spared by the impact of the Covid-19 Navachab has been in operation for is expected to be completed by the pandemic. This includes delays in the UNDERGROUND … The entrance of the trial underground mine. three decades, and is jointly owned end of 2021. If results of the trial supply chain as the virus delayed the by QKR Mineral Holdings underground mine are positive the delivery of the mining fleet. Skills (92.7%) and Namibian government full underground mine has potential necessary for the execution of the mining company Epangelo Mining to access higher grade ore below the projects could also not be transferred after it was acquired by AngloGold current open-pit design,” he said. to Namibia due to the pandemic. Ashanti Limited in 2014. With the positive prospects comes, Locally, the pandemic has meant Low grade gold is mined, which more hope for the people of Karibib, some employees had to stay at is highly sensitive to operating costs who have been very dependent on home due to sickness or quarantine, and fluctuations in the gold price the mine’s socio-economic input. impacting completion of some and the exchange rate. Over the last Navachab, through its corporate critical tasks on site. five years Navachab has produced social responsibility strategy has “Navachab has a Covid-19 between 48 000 and 61 000 ounces spent nearly N$16 million over Management and Contingency of gold a year, but expansion plans in the last five years through various plan to reduce the effects of the the pipeline could see that increase to projects such as the drilling of ependemic on the workforce and more than 100 000 ounces per year boreholes to provide drinking water on the business. The plan includes during its lifespan. to marginalised communities around screening and testing, management Not only did the intervention the country; a garden project that of positive cases, measures to curb the of Project Khaima keep the mine benefited 27 marginalised women at spread of the virus and supporting from turning to dust, but it also Karibib and a karakul sheep project government vaccination initiatives. extended employment security to that benefitted 20 marginalised We, however, have largely continued its now 791 workers, 563 are direct families, a majority of which are operations so far,” MACHINES … Underground machines include the development employees of Navachab and 228 woman-run households. Kasale said. drilling (left) and the load haul and dump machine.

CREDITS MARKETING: Carolin Guriras PROJECT COORDINATOR : Dianne Ludwig SCAN TO VIEW THIS SPOTLIGHT SUPPLEMENT EDITOR: Tabby Moyo PUBLICATION: EDITION LAYOUT & DESIGN: Lotta Kaapanda SPOTLIGHT ON MINING - 2021 COVER PHOTO: Debmarine Namibia

Thursday 1July 2021 SPOTLIGHT ON MINING 3

This was mainly driven by the decline of production of gold and zinc which saw double digits contractions at 35,5% and 3,4%, respectively. Mining is a primary industry in Namibia and contributes massively to the economy in terms of output and attracting in foreign currency. At the beginning of the year, the Bank of Namibia raised hope in the mining sector, citing that it would lead the country’s economic growth this year. The first quarter results, however, show need for caution. While the economy is still in a scuffle with the Covid-19 pandemic, the upsides recorded in the general recovery in commodity prices and economic growth in the major economies observed in the first quarter of the year did not filter through STRONG PERFORMANCE … Uranium mining has proven to be the poster boy of the mining industry in Namibia posting a 64,4% growth to Namibia, according to a PSG Namibia during the first quarter of 2021. analysis. This, according to head of research at the firm, Eloise du Plessis, is due to Uranium Leads Mining Sector Recovery the fact that Namibia’s main mineral exports (diamonds and uranium) did not benefit that much from the external • LAZARUS AMUKESHE last week, Namibia Statistics Agency chief as well as the lower worldwide demand for Alex Shimuafeni said despite there being luxury goods. improvements. RANIUM mining posted a an observed recovery of commodity prices Diamonds and uranium are Namibia’s S&P Global’s outlook on the global whooping double digit growth at around the world during the quarter, the crown jewel minerals. mining sector states that the near-term U64,4% during the first three months local mining sector contracted by 19%. The Unlike diamonds, uranium mining was in outlook for the mining industry remains of 2021 compared to the performance sector also posted a 2,9% contraction in a good shape for the first part of the year, strong as pent-up demand emerges post- recorded during the same period in 2020. 2020. Shimuafeni said the poor performance seeing performance jump by a whopping pandemic, while gold prices are expected During the first quarter of the year in the mining and quarrying sector was 64,6% in real value added, from a decline to remain elevated. the entire mining and quarrying sector’s attributed mainly to underperformance in of 31.7% recorded in the same quarter of Last month, the firm said many output was recorded to be at N$3,5 billion diamond mining, metal ores mining and 2020. This stellar performance was due to commodities were back again hitting multi at current prices, representing 8,3% of the other mining and quarrying subsectors. The the increase in production of uranium short year highs, although this still remains to N$42 billion output recorded for the entire diamond subsector shrank by 33,8% in real tonnes as a result of a surge in demand, filter through to Namibia. economy. value added for the first quarter of 2021. coupled with supply shortages resulting Early this month, The Namibian Though it’s a billion dollar figure, Last year, the subsector reported a positive from the Covid-19 impact on productions reported that Namibia was still keeping production was less when compared to over growth of 6,4%. across the world. to colonial trade patterns as the country N$5 billion reported for the first quarter The NSA said the reduction in the diamond The metal ores subsector posted a 44,5% still battles to extract more value from its of 2020. subsector was due to lower production as contraction in real value added compared assets, and prefers sending them elsewhere Announcing the sector’s performance a result of planned maintenance of vessels, to a decline of 6% last year. for value addition.

Nexus Group has now extended their divisions in to the Mining industry as well. Nexus-Ino Mining and Construction (Pty) Ltd currently has 2 (two) mining contracts for the load, haul and dumping of ore material as well as various ancillary civils construction services.

This division of operations are inherently similar in scope and nature to what our experience and operations in the civils construction sector, given the earth moving equipment requirements, although often on a much larger and longer-term scale. Typically mining contracts have a medium-term lifespans, which allows for more predictable and sustainable cash flow planning, which is in line with our overall transformation strategy.

Competition in the mining sector is also a lot less when compared to the civils sector, due to the barrier to entry being a lot higher. In addition to the operational side, we have also formed a strategic alliance with Dust-a-Side, which is an internationally renowned company with more than 40 years’ experience in Total Dust Management Solutions.

Nexus-Ino have also appointed NRGen Advisors, a consulting engineering company to assist with the rehabilitation side of mines, with a focus on the reworking of tailings dumps and slimes dams, as well as Health, Safety and Environmental issues. 4 SPOTLIGHT ON MINING Thursday 1 July 2021 Mining, Value Addition and Sustainable Development Goals

• LOVISA NASHILONGO AMUKWA nuclear fuel resources (uranium), fossil done to ensure the country benefits from fuels (oil &gas), gold and copper, to mention the extraction of mineral resources. To be AMIBIA is a country richly but a few. specific, the 50-50 joint venture between endowed in mineral resources, In comparison with other African nations, De Beers and the government of Namibia Lovisa Nashilongo Amukwa ranging from marine diamonds, Namibia is a relatively young democracy. has been the largest mining contributor to N Notwithstanding, much work has been state revenue through taxes and dividends. On the other hand, a young democracy also means infancy in terms of human capacity to ensure socio-economic development. Overall, the industry has been largely praised for its contribution to the country’s gross domestic product, and for providing employment to both technical, managerial and semi/ unskilled personnel. Despite that, mineral resources are non-renewable. It takes millions of geological years to form new deposits. However, we can ensure mining benefits are sustainable, by creating a circular economy - fostering horizontal and PROTECTIVE & MARINE COATINGS vertical linkages, and managing revenue from mining activities sustainably. Very integral to the above, is human capital to manage this very key industry. A dire need for meritocratic leadership to channel fourth policies and execute on tasks in line with the SDGs, ensuring broad based economic benefit for all - including future generations can therefore not be stressed enough. Our country’s national mining company (Epangelo Mining) has been criticised for being obsolete. But more important than criticism is innovation to spearhead strategic change to ensure government - as a custodian to the citizen’s mineral wealth, is active in resource exploitation, and that lacking skills and technology are transferred during that process. The transfer of skills and technology via the national mining company’s ventures/ partnerships with international mining companies will enable the parastatal to fully and independently own and operate projects at ‘’world class’’ level at a later stage. Apart from this upscaling, other ideas may include becoming more vertically integrated across the mining supply chain. Our advanced coatings and systems This means, not only focusing on the upstream sector (exploration), for civil and commercial infrastructure but aiming for midstream (refineries/ deliver proven protection from corrosion, processing), and downstream (the trading of these minerals). This way, high-temperatures and fire to ensure value addition is maximised. This durability and aesthetic performance that strategy has also been employed by other parastatals such as the National will protect your valuable assets. Petroleum Corporation of Namibia (Namcor) - by way of owning retail fuel stations, and by Namib Desert Diamonds (NAMDIA) - by way of marketing polished diamonds. The state, as a custodian of the minerals, and on behalf of all Namibians, NEO PAINTS is the authorised distributor of should maximise benefits derived from mineral exploitation to create revenue Sigma Coatings in Namibia that would also service other sectors - such as Health and Education. Mineral resources are non-renewable, but the legacy of mining can and must be created to last generations after us.

Lovisa Nashilongo Amukwa is a WINDHOEK WALVIS BAY Geologist by profession, and a member Tel: 061 384 700 Tel: 064 204 026 for the Women in Mining Association of Namibia. She holds a B.Sc. (Hons) Geology from UNAM and an LL.M www.neopaints.com NEOpaintsNamibia International Mineral Law and Policy from United Kingdom. Thursday 1July 2021 SPOTLIGHT ON MINING 5 66 SPOTLIGHT ON MINING Thursday 1 July 2021 Debmarine Vessel Construction on Course

LAZARUS AMUKESHE chief executive officer of the De Mafuta. The sixth is the world’s employees before boarding and Beers Group, has said that some current most highly advanced working remotely. WO years have passed of the highest quality diamonds diamond exploration and sampling It caused not only physical health since Debmarine Namibia in the world are found at sea off vessel, the MV SS Nujoma. issues but also mental health issues. Tannounced that it was going the Namibian coast, and such Rehabilitation of the seabed and Through the company Wellness to build a world class vessel which an investment of this magnitude the marine environment occurs Unit, robust health awareness and is expected to increase diamond should be no surprise for the naturally over time. The Debmarine support programmes have been recovery by at least 30%. precious stones miner. Namibia environmental team developed in order to strengthen In a recent update the company During the announcement of oversees strict guidelines for the mental resilience and care for said construction of the vessel, the AMV3 project, Debmarine vessels, covering everything from each other,” Debmarine Namibia dubbed the AMV3, is progressing Namibia said the new vessel would how the company recovers the said in its brief, adding that it well, with completion time set for create more than 160 new jobs diamonds to how it disposes of every had embraced resilience and the third quarter of this year, and for the mining giant, pushing the piece of waste produced on a vessel. resoluteness. the first production planned for the company’s workforce to just above “Despite the challenges we second quarter of 2022. 1 000 employees. COVID-19 AND EMPLOYEES are facing, we are particularly The new vessel, worth about Netherlands-headquartered The company says its workforce proud that our employees have N$7 billion, will add to Debmarine shipbuilding company, Damen of diverse cultural backgrounds shown resilience, commitment Namibia’s fleet of six and is Shipyards, was allocated the vessel remains the backbone of the and creativity in overcoming tough considered to be one of the biggest construction tender. business, even more during the times. in the Namibian mining industry, In 2017, The Washington Post Covid-19 pandemic. We are looking beyond the and the biggest in the world’s reported that De Beers had only “In these unprecedented times, current difficult times and remain marine diamond mining sector. explored 3% of their acquired Debmarine Namibia took action positive about the future of our Four local banks and a South mining rights of more than 3 000 to support employees ever since business,” the company said. African financial institution - square miles of the Namibian the outbreak of Covid-19. Our Debmarine Namibia has Nedbank Namibia, Bank Windhoek, seafloor. This means there is still a employees are our greatest assets, maintained that its strategy is Standard Bank Namibia, RMB huge opportunity for the company hence taking extensive measures to recover diamonds safely and Namibia and Absa Bank – teamed to expand its operations. across the business to help protect efficiently, leaving a lasting positive up to finance the gigantic project. Debmarine Namibia conducts both the health and wellbeing and legacy and at the same time deliver According to Debmarine marine-based diamond recovery have increased these during the sustainable shareholder returns. Namibia, the AMV3 will be the around 120 to 140 meters below pandemic,” the company said. “We live by the value of putting most technologically advanced sea level with its fleet of six motor Like other economic sectors, safety first, respect, integrity, marine diamond recovery vessel vessels (MVs), capable of exploring Debmarine Namibia was quick to teamwork and excellence. in the world and its design meets for and retrieving diamond-bearing accept that the diamond industry, We consider all risks to people and high environmental standards and materials from the seabed and and the company in particular, the environment before proceeding has a green passport. processing them to a diamond-rich would not be spared from the with any activity. We address risks Debmarine Namibia is a concentrate. devastating effects of Covid-19. before beginning any activity, 50/50 joint venture between the The vessels include MV Debmar “The pandemic has forced us to even if this means stopping a task. Namibian government and the Atlantic, MV Debmar Pacific, MV change our working conditions. Zero harm is always our goal,” De Beers Group. Bruce Cleaver, !Gariep, MV Grand Banks and MV It prompts us to quarantine our Debmarine Namibia said.

MEGA PROJECT … The AMV3 project is progressing well with vessel construction expected to be completed in the third quarter of this year and first production planned for the second quarter of 2022. Thursday 1July 2021 SPOTLIGHT ON MINING 7

The two PCR machines. Debmarine Actively Engaged in the Fight Against Covid-19

AST year and this year have been to complement the government’s effort to community at large. The establishment of by generously digging deeper into their challenging, not only for Debmarine alleviate the testing backlog. the testing laboratory at the Unam Hage pockets and raised a significant amount of LNamibia, but also for the whole world Debmarine Namibia invested over N$8 Geingob Campus was twofold. money, which was matched by the company, in the wake of the global Covid-19 pandemic. million in two Covid-19 Polyerase Chain Firstly, to increase the diagnostic and to assist selected vulnerable communities The Covid-19 outbreak has turned life Reaction (PCR) test machines and also prognostic testing process of Covid-19 with food items. on its head and the Namibian government signed a memorandum of agreement with and complement the Namibia Institute of Several communities from Khomas has been doing the best it can to maintain the University of Namibia (Unam) School Pathology (NIP) to accelerate the country’s (Windhoek informal settlements), a delicate balancing act aimed at slowing of Medicine to conduct the tests. testing capacity. Secondly, to offer medical //Kharas (Oranjemund surrounding down the spread of the virus, while keeping The Covid-19 PCR test equipment students real time clinical opportunities that communities), Erongo (Kuisebmund, the economy and daily lives going as much continues to play a vital role as it has would benefit the country. Walvis Bay) and Otjozondjupa (Okahandja as possible. a capacity of 250 samples per 8-hour Unam will retain the ownership of informal settlements) regions benefited Debmarine Namibia Social Investment turnaround time for results. Since the the testing machines post the Covid-19 from this initiative. Debmarine Namibia has thrown its weight behind the health commissioning in August 2020 to mid- pandemic to test for other viruses, as social investment continues to focus on and well-being of its employees and the March 2021, over 13 000 samples have applicable. community development initiatives in the country at large. As a responsible corporate been analysed. During the lockdown, many families were areas of women and girl-child development, entity the company has committed to The sponsorship was a part of an internal struggling to make ends meet due to the education, health and welfare, sports, and support efforts to mitigate the impact of the Covid-19 response plan aimed at protecting restrictions. Debmarine Namibiaemployees SME development, through the Debmarine- pandemic and therefore deemed it necessary Debmarine Namibia employees and the demonstrated care for their communities Namdeb Foundation.

UNAM experts from the School of Medicine currently run the facility. The laboratory can now analyse at least 500 samples every eight hours. 8 SPOTLIGHT ON MINING Thursday 1 July 2021

www.debmarinenamibia.com

COVID-19 has put great pressure on our nation’s health system. To halt its spread, we partnered with the University of Namibia School of Medicine (Hage Geingob Campus) and donated two fully-equipped and licensed PCR testing equipment laboratory. To improve our nation’s response to this pandemic at a time when it needs #ActsOfBrilliance the most. Thursday 1July 2021 SPOTLIGHT ON MINING 9 Namdeb Extends a Helping Hand to Ministry of Health and Social Services

Photos Contributed

KEY FACILITY … A Covid-19 testing facility aimed at alleviating the backlog has been established DELICATE … Since its commissioning in mid-July, 2020, the Namdeb at the Oranjemund Private Hospital. laboratory has tested over 10 000 samples for Covid-19.

AMDEB continues to play a pivotal role in the fight In order to conduct the Covid-19 tests, Namdeb had to Since commencement of the national vaccination against Covid-19 by lending a helping hand to the carry out extensive alterations to the laboratory, thereby campaign, the turnout in Oranjemund has been Ngovernment, through the Ministry of Health and expanding its footprint to provide support to the //Kharas encouraging, giving hope that the community and the Social Services (MOHSS). region at large. This has reduced a heavy burden on the surrounding areas are surely on the right trajectory to From the onset of the Covid-19 pandemic, the diamond state because Covid-19 tests are only administered through achieve herd immunity. mining giant, as a responsible corporate citizen and a long- accredited laboratories nationwide. “Namdeb is committed to do whatever we can to alleviate term partner of the Namibian government, quickly stepped To date, Namdeb continues to render support for pressure felt by the Namibian nation and we remain in to help flatten the curve of the pandemic by supporting polymerase chain reaction (PCR) testing, as well as antigen dedicated to safeguarding the health and safety of the national efforts to mitigate the impact of the virus. rapid tests to ensure a faster turn-around time for results communities in which we operate and its surrounding areas, In 2020, Namdeb deemed it necessary to complement and assist in cluster case scenarios. as part of our positive legacy, and a true demonstration of the government’s efforts in the fight against the outbreak Since commissioning in mid-July, 2020, the Namdeb the good that diamonds do for our country,” the mining through a collaborative partnership aimed at alleviating the laboratory has tested over 10 000 samples. In addition company says. testing backlog through the establishment of the Covid-19 to the testing, the Namdeb Private Hospital has been Namdeb has committed to continue to be at the forefront testing facility in the Oranjemund Private Hospital. designated as a vaccination site by the MHSS and it has of the fight against the Covid-19 pandemic and to join The testing facility has been set up at its laboratory which been instrumental in rolling out Covid-19 vaccinations, as hands with other industry players in providing the required was originally designed to cater for the small community well as encouraging uptake of vaccines in the close-knit support to the government and other institutions in order of Oranjemund comprised mainly of its employees. community of Oranjemund. to protect the lives and livelihoods of Namibians.

GOOD TODAY. BETTER TOMORROW. 10106 SPOTLIGHT ON MINING Thursday 1 July 2021 Rosh Pinah Mine to Generate Own Solar Power

OSH Pinah mine will construct its Energy Services Company (Emesco). company operating own solar photovoltaic system that Emesco is a renewable energy provider in the renewable Rwill meet up to 30% of the lead based in Tshwane, South Africa. energy markets of and zinc mine’s total electricity needs for Trevali Mining Corporation has entered southern Africa. It has the next 15 years. into a 15-year Power Purchase Agreement implemented 32 MW The mine’s owner, Canada-based Trevali (PPA) with Emesco. The PPA will supply of solar PV projects in Mining Corporation, is committed to 30% of the mine’s power requirements at the region. reducing the environmental impact of a fixed rate. It will reduce energy costs by It will be Rosh Pinah mine through the construction 18% and cut the company’s greenhouse gas responsible for the of a solar PV system that will be financed, (GHG) emissions by 6% during its tenure. design, permitting, OWN POWER … The Rosh Pinah zinc and lead mine will soon be built and operated by Emerging Markets Emesco is a full lifecycle energy services financing, and able to generate power from its solar PV system. implementation of a solar energy system on a neighboring property at no cost to Trevali. Emesco has built a 10 MWp solar power plant in Okatope, Namibia. The LET’S GET company has also installed a 2,2 MWp VACCINATED solar plant on the roof AGAINST COVID-19 of Airport Junction, a shopping centre in Gaborone, Botswana. “Our sustainability programme commits to significant reductions in GHG emissions, and with the signing of this agreement with Emesco we have taken a major step towards delivering on our commitment by securing renewable energy, while also reducing our expected energy costs,” said Ricus Grimbeek, president and CEO of Trevali. Both parties have, however, not provided further details, including the capacity of the Rosh Pinah solar PV plant. “If Trevali makes a positive investment decision on the Rosh Pinah mine expansion project, Emesco will increase the delivery of electricity to Rosh Pinah to remain at 30% of the mine’s annual energy consumption, as provided for under the amended single LET US PROTECT buyer framework in Namibia,” the Canadian mining company says. OUR LOVED ONES Trevali says the choice of a clean energy source is part #vaccinate of its overall policy to reduce its GHG emissions by 25% by 2025 from its 2018 baseline. And the choice of Emesco to accompany it in its mission is not RMA, Your Health Comes First. insignificant. The renewable energy provider has a strong track record in solar power generation +264 83 299 9000 for industrial and commercial www.rmanam.com customers. Thursday 1July 2021 SPOTLIGHT ON MINING 11 Nexus Group – A truly Namibian Diversified gem

EXUS Group is Namibia’s community leaders are respected and leading building and civil conformed to in all Nexus operations. construction company with Community activities, such as Nexus site at Lodestone, N Dordabis. an annual turnover of N$500 million sports and cultural activities, are and over 700 employees. promoted by means of participation, The group is one of the few truly sponsorship and financial support. Namibian construction companies, Nexus Group has immense founded and run by director/ capability to deliver a range of projects shareholders who are Namibian from large scale to a multitude citizens. of clients in diverse markets. The For the past 20 years, Nexus has company is also a member of the almost exclusively been involved in Namibia Chamber of Commerce and the construction of buildings and civil Industry (NCCI). engineering works in the communal Nexus operates in sectors including areas of the northern and central infrastructure, roads and earth works, regions of Namibia. property and concessions, mining The company uses locally sourced services, interior fit-out; and the materials and services, except in few construction and building sector. instances where the required product The company’s client base includes is not available in Namibia. Whenever the government, state-owned feasible, preference is given to enterprises, local authorities, major businesses near the contract site. mining houses, large corporate Local customs, religion and groups, financial institutes and practices of the people and the property developers. Afritin mine site at Uis.

TAILINGS MANAGEMENT & OPERATIONS EXCELLENCE Tailings disposal and hydraulic reclamation of thereof is our business. We specialise in the operations and management of Tailings Storage Facilities (TSFs) in the Mining Industry. Cycloning, spigotting and daywall paddocking form part of our portfolio. Apart from the operations and management of TSFs, our expertise expands into the Reclamation of TSFs by means of hydraulic monitoring as well as any Civil Works relating to Tailings Storage Facilities (TSFs)

Tel : +27 11 660 9466/90 | Cell : +27 82 920 9063 (Gerrit) | Cell : +264 81 122 4966 (Bertie) Email : [email protected] | Website : www.namcep.co.za 12106 SPOTLIGHT ON MINING Thursday 1 July 2021

Becoming the new African tech-metals champion

AfriTin is planning to adopt and comply with the International Council on AfriTin Mining & Metals’ Performance Expectations 10 principles. These have been grouped into three responsible mining pillars: Initiatives

ENVIRONMENTAL

• Continuous monitoring of dust, water and waste management practices MEDICAL SERVICES • Reduced level of environmental risk through non-chemical ore beneficiation Collaborate with local authorities to • Aiming to achieve a no-net-loss of biodiversity identify areas for direct intervention to improve existing facilities • Take responsibility for re-use, recycling, disposal of products 1 containing metals and minerals

ENVIRONMENTAL

SOCIAL Assisting in long term sustainability • Support UN Guiding Principles on Business and Human Rights of various environmental initiatives

• Health and safety standards established with regular risk assessment and awareness campaigns • Inclusive and supportive approach with local community COMMUNITY • 100% Namibian workforce

2 • All employees treated equally irrespective of race, gender or creed Direct and indirect sustainable job creation for the immediate and surrounding communities

100% proudly Namibian workforce GOVERNANCE and where possible, assisting in entrepreneurial development and • Quoted Companies Alliance (QCA) Corporate Governance Code initiatives 2018 adopted Sponsorship of the community • Sustainable development principles are integrated into corporate sporting and cultural activities strategy 3 • Corporate and individual risks are monitored and assessed @Afritin_Mining | @afritinmining [email protected] | www.afritinmining.com Thursday 1July 2021 SPOTLIGHT ON MINING 13

Becoming the new African tech-metals champion

AfriTin is planning to adopt and comply with the International Council on AfriTin Mining & Metals’ Performance Expectations 10 principles. These have been grouped into three responsible mining pillars: Initiatives

ENVIRONMENTAL

• Continuous monitoring of dust, water and waste management practices MEDICAL SERVICES • Reduced level of environmental risk through non-chemical ore beneficiation Collaborate with local authorities to • Aiming to achieve a no-net-loss of biodiversity identify areas for direct intervention to improve existing facilities • Take responsibility for re-use, recycling, disposal of products 1 containing metals and minerals

ENVIRONMENTAL

SOCIAL Assisting in long term sustainability • Support UN Guiding Principles on Business and Human Rights of various environmental initiatives

• Health and safety standards established with regular risk assessment and awareness campaigns • Inclusive and supportive approach with local community COMMUNITY • 100% Namibian workforce

2 • All employees treated equally irrespective of race, gender or creed Direct and indirect sustainable job creation for the immediate and surrounding communities

100% proudly Namibian workforce GOVERNANCE and where possible, assisting in entrepreneurial development and • Quoted Companies Alliance (QCA) Corporate Governance Code initiatives 2018 adopted Sponsorship of the community • Sustainable development principles are integrated into corporate sporting and cultural activities strategy 3 • Corporate and individual risks are monitored and assessed @Afritin_Mining | @afritinmining [email protected] | www.afritinmining.com 14106 SPOTLIGHT ON MINING Thursday 1 July 2021

AfriTin Breathes Life Back into Uis

GLOBAL PLAYER … Uis could become home to a mine that produces about 3% of the total global tin supply. Photos: Contributed

REVIVAL … AfriTin mine at Uis has brought life back to the settlement.

• ADAM HARTMAN are getting a salary from the mine – 33% of financial year) show that the company rock lithium deposit, for use in ceramics,” the them from the Uis settlement and the Daures unearthed about 312 tonnes of tin. mine spokesperson further points out. HEN South African iron and steel constituency. Drummond says AfriTin’s springboard The expansion would include the giant Iscor stopped 30 years of A further 101 sub-contractor workers are production of 60 tonnes per month was development of the existing electricity Wmining at Uis in 1990 due to a earning a living through AfriTin. achieved in November 2020, during its pilot and water supply capacity, while it also slump in global tin prices, the settlement In addition, workers get in-service training projects and processing facility. enjoys the support of the existing product (which was also owned by the company) lost and skills-development, and are supported Feasibility studies have, however, indicated logistics-chain along which tin concentrate a life source that was hard to supplement, with bursaries from the company. that with the mine’s potential to expand, it is exported through the port of Walvis Bay leading to the deterioration of its socio- “As for community involvement, AfriTin will be able to produce 100 tonnes of tin per to Thailand, under the existing long-term economic growth. started a school-feeding programme, giving month (equivalent to 1 200 tonnes per year), off-take agreement with Thailand Smelting But, things are changing fast since AfriTin many of the pupils the only proper meal they for at least the next 18 years. and Refining Corporation. acquired the mining rights for the stagnant will get in a day, while the mine also assisted a “Once the expansion is realised, Uis could “With robust tin market fundamentals, Uis deposit in 2016, and in 2017 became the local resident to make masks to protect against become home to a mine that could produce combined with other by-product production first pure-play tin company to list on the Covid-19, which are distributed to schools and about 3% of the global tin supply, and could revenues added to general increase in activity London Stock Exchange. the local clinic. The local soccer team is also also produce lithium and tantalum by- in the new technology and battery metal space, After investing hundreds of millions of sponsored by the mine,” says Drummond. products, which were discovered through AfriTin is well placed to take advantage of dollars into the Uis mine, AfriTin has not Considering that Uis’ growth has been in recent analyses,” she says. this burgeoning demand by opening a new just managed to revive the old mine, but has the doldrums for the past 30 years, the new “These additional products represent a technology super metallogenic province of also warmed the pulse of the settlement, and life from AfriTin has also led to indirect jobs potential upside within the same ore body at global significance,” Drummond told The began breathing life back into the community. creation and economic flow in local products Uis, meaning zero additional mining costs if Namibian. Mine spokesperson Cath Drummond says and services. they were to be extracted, and this creates the “We are striving to become the new there are currently about 123 people who The latest results (for the 2020-2021 possibility of Uis becoming a sizeable hard- technology metals champion of Africa.”

CLEANING PRODUCTS & EQUIPMENT CLEANING PRODUCTS & EQUIPMENT

CRUSHER BACKING RESIN CRUSHER BACKING RESIN WEAR RESISTANT COMPOUNDS WEAR RESISTANT COMPOUNDS EPOXY GROUTING COMPOUNDS EPOXY GROUTING COMPOUNDS CONVEYOR BELT REPAIR CONVEYOR BELT REPAIR UNDERWATER REPAIR UNDERWATER REPAIR WET SURFACE REPAIR WET SURFACE REPAIR STEEL EPOXY STEEL EPOXY HIGH PRESSURE INDUSTRIAL INDUSTRIAL HIGH PRESSURE INDUSTRIAL INDUSTRIAL MINING SOLUTIONS CLEANERS SWEEPERS VACUUMS MINING SOLUTIONS COLD WELDING PROCESSES CLEANERS SWEEPERS VACUUMS COLD WELDING PROCESSES

28 Joule Street, Southern 10-12 Nickel Street Oshakati Swakopmund, Ext 10 www.tmpn.com 28 Joule Street, Southern 10-12 Nickel Street Oshakati Swakopmund, Ext 10 www.tmpn.com Industrial Area Prosperita, Windhoek Main Road Eliaser Tuhadeleni Street [email protected] Industrial Area Prosperita, Windhoek Main Road Eliaser Tuhadeleni Street [email protected] Tel: (061) 370 700 Tel: (061) 370 770 Tel: (065) 222 447 Tel: (064) 463 806 Tel: (061) 370 700 Tel: (061) 370 770 Tel: (065) 222 447 Tel: (064) 463 806 Fax: (061) 370 707 Fax: (061) 370 777 Fax: (065) 222 309 Fax: (064) 463 858 Fax: (061) 370 707 Fax: (061) 370 777 Fax: (065) 222 309 Fax: (064) 463 858 Thursday 1July 2021 SPOTLIGHT ON MINING 15 RMB Namibia - A Key Mining Strategic Partner AMIBIA is a develop local beneficiation. For example, in the minerals feeding into the battery and electrification to power for mining operations. In addition, the renowned and diamond industry there has been an enormous sector. The mining industry has always been at the country’s geographical location makes it the perfect Nsignificant drive to promote the local cutting and polishing forefront of the transition to a green economy, by candidate for both solar and wind opportunities. mining jurisdiction – industry. Today, 15% of the diamond production constant exploration for the various minerals, and Despite the potential that the sector holds, home, amongst others, in Namibia gets handled by a local Namibian the Namibian mining industry adheres to strict there is room for improvement in how exploration to some of the world’s company. Although still at feasibility stage, there environmental regulations thereby complying licenses are allocated. Currently, there is a complete largest uranium deposits are plans to increase the quantity of locally refined well with the various Environmental, Social and moratorium on issuing new licenses within and is the world’s largest zinc with the possible conversion of a zinc refinery Governance (ESG) facets. Namibia, which will only be removed later in August producer of marine plant in Namibia. Namibia is a nett importer of power, but there this year. RMB Namibia is actively engaging all diamonds. There are also currently several projects at are many renewable energy projects either in stakeholders in the mining industry to ensure its Therefore, the mining various stages to supply the increasing demand for construction or in the feasibility phase to get access full potential is unlocked. and exploration industry is a key driver of economic growth as it contributes approximately 10% to the country’s Gross Domestic Product (GDP). RMB Namibia has been a strategic partner as a financial services’ provider of this industry. RMB Corporate Investment Banking has been in existence in Namibia since 2014. It works with approximately 80% of the active players in the Namibian mining industry. As a result, the bank has been offering innovative corporate banking and financial solutions to clients in Namibia for more than a decade. RMB Namibia remains committed to seeing and THINKING helping its clients and stakeholders through the present challenges. Being cognisant of the value of collaboration, RMB seeks MINING? to serve alongside clients as partners and not as mere service providers. In pursuit of these partnerships, RMB We’re thinking Namibia’s dedicated team continuously explores innovative solutions to sustainable finance meet the ever-evolving funding requirements of clients. for producers. Fabian Shaanika, Sector Lead: Mining and Natural Resources: “We continue to ensure that we have the rmb.com.na internal capabilities of people with solid industry backgrounds to form strong partnerships with our clients and offer them tailored solutions to their requirements.” Due to the Covid-19 pandemic and resulting restrictions, mining’s contribution to Namibia’s GDP contracted by about 12% over the past year. Although mining was classified as a critical activity and some operations were allowed to continue at minimal levels, other operations went into care and maintenance. Namibia in general has a diverse mix of mining operations, including base metals, precious metals, and uranium. CORPORATE AND INVESTMENT Overall, the impact of Covid-19 was well- buffered by the mere nature of the diversified a Division of FNB Namibia Limited. Reg. No. 2002/0180. Terms and conditions apply. mining portfolio of the country. Equally, there are ongoing efforts to 16106 SPOTLIGHT ON MINING Thursday 1 July 2021

Road to mineral beneficiation finally paved

MORE WORK … The mining sector has been responsible for around 9% of the country’s total output. However, the state has maintained that the mineral sector’s contribution has not yet reached its full potential. Photo: Unsplash

• NGHIINOMENWA ERASTUS for further value addition through just a theoretical tool which needs operating environment not conducive manufacturing. implementation from collaborative enough and conditions unfavourable in HE government has finally The two ministries have conceded stakeholders in the country. terms of credit rankings of the country. launched its strategy on how that although Namibia has capacity The two ministries have also Namibia still lacks low economies Tminerals may be beneficiated in or can add more value to some of its highlighted that only a “timeous of scale at downstream activities. Namibia to, among other things, enable minerals, little has taken place in this implementation of this strategy The country has limited access to downstream industrialisation. area. will result in immense benefits for skills required for beneficiation and This will be done through the “Namibia can generally be defined Namibian citizens” manufacturing. Foreign investors have provision of feedstock and other as an economy that is currently This is through job creation, skills access to capital from their country inputs to the manufacturing industry, operating with low levels of mineral development, technology transfer and can use their balance sheet muscle the Namibia Mineral Beneficiation beneficiation,” the two ministers jointly and economic diversification, thereby to borrow. Strategy (MBS) reads. wrote. The Namibian mining sector improving the quality of life and However, local entrepreneurs For the past 30 years of independence, has been responsible for around 9% reducing poverty levels by the way of highlighted that it is difficult to obtain Namibia, which is endowed with a of the country’s total output. However, increased earnings. finance from financial institutions. variety of minerals, never had a strategy the two ministries believe that the Ideally, a competitive industry Moreover, it has been found that to add value nor facilitate downstream mineral sector’s contribution has not consists of a well-developed there is low appetite for locally processing apart from sending the yet reached its full potential. manufacturing sector that adds beneficiated and manufactured minerals to the harbour in their raw This is in terms of converting value to raw materials. To produce products at national, regional and form. the country’s extensive mineral either semi-finished products or international level, according to the The country only had a beneficiation endowment to create corresponding products that are ready for market strategy. strategy for diamonds, which has advances in social and economic consumption in various industry Based on these constraints the MBS seen the creation of local cutting and development across the country. sectors, including construction, now wants to address the impediments polishing companies, as well as own With the government conceding battery storage, pharmaceutical, highlighted by the industry. valuation of the gems. that “the absence of a national MBS chemical, agricultural, automotive, oil, The practicality is now to enhance Earlier this year, the ministries of has been a major handicap in the metallurgical, electronics, aerospace, mineral sector governance, securing mines and energy and industrialisation implementation of policies that plastics and energy. raw material and intermediate and trade launched Namibia’s collective promote value addition, particularly in resources. strategy to facilitate downstream the mining industry”, the beneficiation THE LIMITATIONS Secondly, it will develop skills in industrialisation to boost value strategy now seeks to complement The development of the MBS called the country and facilitate research addition to minerals prior to their key national development initiatives for wide consultations with stakeholders and innovation, enhanced investment export. by creating an environment that is and benchmarking. The process attraction and retention in the country. Beneficiation of minerals is the conducive for investment and value- revealed various constraints hindering With less appetite for beneficiated processing of mined ore to separate addition. beneficiation and manufacturing in the products, the strategy intervention is valuable mineral products from the This will be through the provision mining sector. to do rigorous marketing and trading associated waste rock or impurities. of mineral-based feedstock for Some of the main constraints include of locally beneficiated products. The extent to which this is carried out competitive manufacturing and unfavourable costs of production The strategy outlines three determines whether the product is productive development sectors, in due to high costs of utilities and low corresponding time-framed growth intermediate in its purity and should be an environmentally sustainable way. productivity levels in the country. scenarios of implementation starting processed further or it is refined, ready Moreover, for now the strategy is International investors find the from this year to 2030. Proven on the ground in Namibia with more than Meet the Beast 100 000 hours of Data ALL NEW!!! Mining Range 4X4, 6x6 and 8x4 40 Tonne payload* Unbeatable TOC Engineered for mining For more information, Namibia Mining specialist:

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Thursday 1July 2021 SPOTLIGHT ON MINING 17 Mining Expo & Conference May Go Or Virtual

NE of the highlight events of the Namibian book a virtual booth? Your input will be most valuable mining calendar, the Mining Expo and to assist the Chamber in making a final decision to OConference, is likely to be held virtually this host a virtual Mining Expo & Conference, which is year due to the Covid-19 pandemic that saw the event envisioned to take place on 1 & 2 September 2021,” being cancelled in 2020. says the CoM in its communication to stakeholders.

The custodian of the event, the Chamber of Mines The popular Mining Expo & Conference is normally of Namibia (CoM), is investigating the possibility of hosted at the Windhoek Showgrounds. hosting a virtual Mining Expo and Conference on 1 It is an annual highlight on the calendar of the and 2 September, 2021, given the current Covid-19 Namibian mining industry and the local business

situation in Namibia, and particularly in Windhoek. fraternity. The Chamber is currently consulting exhibitors It has garnered notable attention from the outside Chamber of Mines CEO Veston Malango and other stakeholders to find out if they would be world with an increasing number of international interested in a virtual expo and conference. countries and investors attending the event. Cell: 0811220771 “ A virtual expo is an online virtual exposition hall The Expo and Conference, which run in tandem, accessible over the Internet. it is a multimedia format are also free of charge to the general public. Dear exhibitor, should the Chamber of Mines that gives the real-time experience of visiting and The Chamber has said it prioritises the safety, host a virtual Mining Expo & Conference, will moving (in 2 or 3-D) around in the virtual exposition health, and well-being of all event participants hence your company book a virtual booth? Your input hall and booths using arrow keys on your keyboard. the decision to consider a virtual exhibition. will be most valuable to assist the Chamber in Available to visitors online, round the clock though An earlier statement by CoM CEO Veston Malango making a final decision to host a virtual Mining there are usually specific times that the exhibitors are stated that it was not possible to predict government’s Expo & Conference, which is envisioned to take present in their booth and you can chat with them. actions or decisions pertaining to mass gatherings “ place on 1 & 2 September 2021 “Dear exhibitor, should the Chamber of Mines host a such as the Mining Expo & Conference in response virtual Mining Expo & Conference, will your company to further Covid-19-related developments. - Chamber of Mines

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SANITATION … The Twin Hills Trust is supporting the upgrade of bulk sewer pipes in the informal EARLY LEARNING … The Trust, set up by Osino Resources, currently supports settlement of Usab (Karibib), which will allow residents to install flush toilets. early childhood development (ECD) in Omaruru’s informal settlements. Osino Resources Puts Local Development Front and Centre

HE Twin Hills Trust, a not-for- and a regional socio-economic baseline 723 households, consisting of almost more communities can benefit from their profit organisation set up by Osino and impact study was undertaken to help 3 000 people. work in the region. Daun adds: “We are TResources Corp. to support local determine the Trust’s objectives and funding • ONLINE MARKETING OF NAMIBIAN inviting our service providers and suppliers social, environmental and economic areas,” he adds. CRAFTS: The Omba Arts Trust to also contribute to the Twin Hills Trust development projects, has announced its The Trust currently supports the work (Omba) is an NGO that supports some and make it their own. The vision is for the first five projects. being done by respected Namibian non- 400 artisans, of which 60% are San Trust to become independent of Osino and Globally, there has been a growing governmental organisations and in future living on resettlement farms and in be a self-sustaining social investment vehicle emphasis on responsible mining practices plans to also engage in direct development conservancies. Omba facilitates the for all who benefit from the development of and progressive mining companies go to activities itself. The following five projects development and marketing of their the Twin Hills gold project”. great lengths to maximise the areas where have received funding to date: iconic crafts. The collapse of Namibia’s “We take responsible corporate citizenship they can contribute positively. tourism, due to Covid-19, has reduced seriously and look forward to continue Osino Resources Corp., a Canadian listed • EARLY CHILDHOOD DEVELOPMENT Omba sales by over 85%, impacting collaborating with our host communities to gold exploration company active in Namibia, (ECD): ECD is important for a the livelihoods of these artisans. The find ways to improve their quality of life,” is one such company. As part of its broader child’s development, yet in Namibia San have been particularly impacted concludes Daun. sustainability efforts, it recently established few children have access to such given that craft production is often their a not-for-profit organisation–the Twin Hills programmes. The Development only source of income. Omba is being Trust–to formalise its support for local Workshop of Namibia (DWN) helps supported with N$132 000 of funding development projects. ECD centres in informal settlements to allow the organisation to implement “Even though we are only at the gold improve their effectiveness. DWN is an internet and social media-based exploration stage, Osino Resources has, being supported with N$550 000 to marketing strategy to increase online from its earliest days set itself high standards expand its successful ECD support product sales. as a corporate citizen. Good environmental, programme to the informal settlements • FOOD SECURITY FOR SAN ARTISTS: social and governance (ESG) performance is of Omaruru. Due to the decrease in craft and art sales, central to our business strategy,” says Heye • AFFORDABLE LAND: The lack of San artisans are struggling more than Daun, Osino’s Founder and CEO. affordable land for housing contributes usual to buy food, and malnutrition The Trust was set up by Osino to manage to the rapid growth of informal rates have increased considerably. its corporate social investment (CSI) settlements. DWN empowers local Omba is being supported with an activities. The entity takes its name from authorities to provide serviced land, additional N$150 000 of funding to Osino’s Twin Hills gold exploration site near at cost, for low-income earners to provide two large food consignments the town of Karibib, in the . purchase. DWN is being supported with that will support 130 San artisans With N$2 million of seed funding provided N$550 000 to accelerate their existing living on four resettlement farms in by Osino, the Trust is looking to invest in land project at Karibib. the remote Omaheke and Ohangwena areas including community wellness and • SEWER INFRASTRUCTURE Regions. health, education, enterprise development, UPGRADE: To allow dwellings in the As the Twin Hills gold mining community infrastructure improvement, informal settlement of Usab (Karibib) project evolves, Osino plans to grow and environmental conservation and to install flush toilets, bulk sewer its annual contribution to rehabilitation. pipes need to be upgraded. The Usab the Trust so that Daun says that the Trust’s objectives community, supported by the Namibia are to contribute to long-term and lasting Housing Action Group (NHAG) and the community development and resilience, Shack Dwellers Federation of Namibia empowering and improving the quality of (SDFN), is working in partnership life of the most disadvantaged communities, with the Karibib Town Council to BOOST FOR ARTISANS… Due to the collapse in tourism, many artisans have lost their and improving the environment. achieve this upgrade. The Trust is income from art and craft sales, which has led to a worsening of malnutrition rates. “The Namibian government’s current contributing N$500 000 towards this The Trust is funding the provision of two large food consignments that will support 130 development priorities were reviewed upgrade, which in total will benefit San artisans living on four resettlement farms in the remote Omaheke and Ohangwena Regions. Thursday 1July 2021 SPOTLIGHT ON MINING 19

TSX-V: OSI FSE: R2R1 OTC: OSIIF

Building value for all

Osino is a Canadian gold exploration and development company with a strong sustainability ethos. The company is making great strides in advancing its exciting Twin Hills project near Karibib. www.osinoresources.com

Osino’s responsible mining priorities:

· Embedding sustainability in the organisation · Employee health, safety and well-being Osino set up the Twin Hills Trust to manage · Community relations and development the company’s corporate social investment · Environmental stewardship (CSI) activities. 206 SPOTLIGHT ON MINING Thursday 1 July 2021

Photo: Investor Junkie Illicit Financial Flows in Namibian Mining Sector

• VICTORIA LIKIUS financial flows in the Namibian evasion would often mean hundreds mining sector and in relation to of millions of dollars lost or foregone LTHOUGH there is no tax law. tax revenues that could otherwise -Transfer Pricing universal consensus on the Illicit financial flows in the mining -Trade Misinvoicing have been collected and used for -Tax Avoidance definition of illicit financial sector can take various forms in terms supporting sustainable economic -Money Laudering A -Tax Evasion flows, these are generally viewed of tax evasion, such as manipulation growth, creating jobs, reducing -Related Party’s as the financial end of criminal of transfer pricing, inflated costs inequality, poverty, and addressing Transactions activities. of minerals and services, under- climate change, among other things. Illicit financial flows are often reporting of production volumes, The practice of illegally hiding referred to as cross-border underestimation of the value, or income from tax authorities and transactions of money illegally treaty and law shopping. sending it abroad by means of evading earned, transferred or used. This can also take place in instances taxes hampers government efforts to Commonly, they are classified within where legitimate funds are illicitly mobilise domestic resources. the categories of commerce, crime transferred to another jurisdiction Despite these negative impacts or corruption. for the purpose of reducing or that illicit financial flows have on Mining is Namibia’s primary escaping tax obligations in the our economic security, solutions to economic sector in that the country’s country of origin. This is often done combat these practices do exist and economy is hugely dependent on by manipulating transfer pricing are available. These may include the extractive sector, particularly payments between subsidiaries of but are not limited to, establishing in diamond exports which alone the same multinational company in clear, concrete, and up-to-date account for 10% of the gross domestic different jurisdictions. policies; promoting effective due product (GDP). A related practice can be false diligence; international cooperation Furthermore, Namibians and invoicing, shifting profits through and collaborating across industries Namibian-owned companies own the use of fake invoices between and sectors. less than 10% in most mining independent companies. To curb illicit financial flows and to entities, with the majority ownership Illicit financial flows pose a huge protect public minerals and resources resting in the hands of foreigners or challenge not only to political from exploitation by ensuring they multinational companies. security, but also to economic benefit all citizens, a developing NOT LEGAL … An illustration of illicit financial flows Domestic public resources, and security around the world and country like Namibia should also especially minerals, are a central particularly of developing countries involve the different financial component of financing across the such as Namibia. institutions working together, not monitoring and reporting of suspicious activity of any Sustainable Development Goals, Illegal mineral extraction is only to provide banking statements manipulated transfer pricing, underpricing or overpricing therefore, illicit financial flows strongly connected to deforestation of multinational companies but of exported minerals. drastically reduce the amount of and environmental degradation, also conduct valuations on exported resources available for essential as well as the impoverishment of minerals, as well as provide accurate * Victoria Likius holds an LLB degree from the University public services, such as education individuals and communities who information on services rendered in of Namibia and an LLM degree from Stellenbosch or health, which may undermine the rely on those resources to sustain the mining sector. University. achievement of these goals. their existence. Such financial institutions must She’s an admitted legal practitioner of the High Court This article focuses on illicit Illicit financial flows through tax also be responsible for transaction of Namibia. [email protected]

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Typical floating walkway Siphon decant system installation Namcep Leads Mine Tailings Management • ADAM HARTMAN deposition for the associated tailings. footprint is rehabilitated afterwards to One of the most important factors to as close as possible to its original state. INE Tailings Operators consider, explained Groenewald, is Groenewald said Namcep provides (trading as Namcep) is a the environmental impact the facility the whole range of monitoring guns to Mspecialised tailings storage will have, and the rest of the design fit every need and situation. facility (TSF) company focusing on parameters such as the geometry of tailings management and operations the dam, drainage facilities and water CIVIL WORKS for the entire mining industry in availability requirements. Namcep also has the ability to Namibia. When it comes to operating a tailings assist the mines with many types of The company is Namibian-managed storage facility, Namcep has expertise civil infrastructure work that may be and supported by a specialised South in all three methods of building them, required during initial start-up phases African tailings company which has 40 namely cycloned, spigot or spray bar or additional ad-hoc work required years’ experience in the field of tailings deposition as well as paddock or day- around existing TSFs. disposal, company spokesperson Bea wall construction. These additional services include, Groenewald said. “We concentrate especially on amongst others, the construction of “With decades of experience and keeping the environmental impact of new TSFs, return water dams and extensive knowledge in dam and the facility to the minimum, ensuring pump stations; concrete lined solution tailings management across a wide complete legal and operational trenches; installation of floating range of minerals, we are considered to compliance. The saving of water, or penstock, pipeline and siphon decant Settling dam cleaning be the leaders in the cyclone deposition the maximum return of water in this system installation; the design and method,” she said. water-scarce country, plays a major installation of drainage systems; Due to the success of its SA-based role in the design or operations phase,” floating walkways; and the de-silting company and the demand in the Groenewald explained. The company, and hydraulic cleaning of silt traps and industry to operate and manage TSFs, through its SA sister company, Cyclone spillage dams. Namcep was established in Namibia Engineering Projects, uses its own “Apart from being a professional TSF during 2016, and now has an office specialised and patented cyclones that managing and operating company, at Swakopmund where 20 people are ensures optimum water recovery back Namcep and its sister company never employed. to the mine for use as ‘process-water’. experienced any signs of TSF failures. Currently, Namcep is operating and Safety plays a major role in our managing the tailings storage facility HYDRAULIC MINING approach and we are proud to mention at Swakop Uranium’s Husab mine “During these tough economic that we have no loss of time incidents near Arandis, while it also successfully times where mining costs have and an exceptionally good safety track operated the facility at B2Gold near escalated excessively, it has become record,” said Groenewald. Otjiwarongo. very profitable for mining houses to The main operating philosophy for The company is close to being awarded recover dormant tailings which still Namcep is the development of and another contract near Swakopmund, have residual value. In order to do sustaining a close work relationship according to Groenewald. this, hydraulic re-mining is the best with its clients through specialised Namcep’s products and services and cheapest solution to recover these skills developed, and committed include tailing dams, hydraulic mining minerals,” said Groenewald. employees sharing this philosophy. and civil works. This is when high pressure water “By following this viewpoint, we is used to monitor the tailings back enable better communication and Hydraulic re-mining TAILINGS DAMS to the plant by means of high- understanding of the needs from There are many parameters to pressure monitor guns. This method is the clients, ensuring ultimately the consider when choosing a location apparently also very environmentally optimum results,” the company for a TSF, and the specific method for friendly where these old facilities’ spokesperson said.

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Photos: MAWLR WATER ... Minister Calle Schlettwein (centre) pictured with Dr Elijah Ngurare, Director of Water Supply Sanitation Coordination, (left) and Abraham Nehemia, NamWater CEO, during his familiarisation visit to the Erongo region. The intersection of Mining and Water sectors

• JONA MUSHEKO This article will highlight the crossroads NamWater, with an annual consumption the key contributors to the revenue collected, where the mining and the water sectors of 13 313 379 cubic metres. This takes contributing more than 55 percent (mainly FEW weeks ago I had the privilege meet. Water serves as a critical input in up about 16 % of the total annual water from Rössing Uranium and Husab/Swakop to accompany the minister of the mining sector, hence the government’s consumption, with the rest accounted for by Uranium). Aagriculture, water and land reform, commitment, through NamWater, to ensure other customers such as City of Windhoek During his visit to Erongo region, minister Calle Schlettwein, on his familiarisation visit sufficient and timely delivery of this vital and other local authorities. Schlettwein revealed that the government to the Erongo region where he deliberately commodity. The mining sector, collectively, In the 2019/20 financial year, NamWater has decided to construct its own desalination included visits to mines in the region. remains the biggest water customer for reported that the mining sector was one of plant near the coastal town of Swakopmund. CONTINUED ON PG 23

Republic of Namibia Ministry of Agriculture, Water and Land Reform

Mine Name Annual Water Consumption Source (through NamWater) Husab/Swakop Uranium Mine 7.9 Mm³/annum Erongo Desalination Plant through NamWater Rössing Uranium Mine 2.9 Mm³/annum Erongo Desalination Plant through NamWater Langer-Heinrich Uranium Mine 1.9 Mm³/annum (currently not Erongo Desalination Plant through in production) NamWater Uis Tine Mine Groundwater sources B2Gold Otjikoto Mine Groundwater sources QKR Namibia Navachab Gold 1.6 Mm³/annum (unpurified Swakoppoort Dam Mine water) Thursday 1July 2021 SPOTLIGHT ON MINING 23

This is to ensure that there the integrated water supply significantly above the mine’s is continued supply of potable system at the central coastal peak consumption of 80 000- water (to local authorities in area. 100 000 cubic metres per Erongo region) and industrial During the ministerial visit, annum. water to the mines within the it was encouriging to see that With plans to expand its region. some mines have put in place mining activities in the future, Presently, some mines in the water-saving and recycling the mine invested in new region are supplied with water mechanisms to reduce the technologies and water saving from the Erongo Desalination demand on general water supply. measures; hence its water Plant through NamWater as per For instance, the Husab/Swakop consumption has remained the the off-take agreement between Uranium mine indicated that it same. The new water supply the two entities (NamWater and does not dispose of water after agreement signed in 2020 has Erongo Desalination Plant). use (which can be hazardous to the same total allocated volumes The minister emphasised the the environment), but rather as the agreement signed (with government’s aim to strengthen treats the water for re-use, such NamWater) at the inception of the integrated water supply as for dust suppression on the the mine. system at the coast, which mine. B2Gold Otjikoto Mine uses allows water to flow from both Furthermore, the Rössing underground water for its the groundwater sources of the Mine informed minister mining operations. The mine Kuiseb and Omdel aquifers and Schlettwein that it was busy had a water abstraction permit from desalinated water sources. with the construction of water of 2 million cubic metres in till PIPELINE... A NamWater pipeline in the Erongo region. With assistance from the central reservoirs to increase the already early 2020 when it was later government, bulk water supplier existing water capacity storage increased to 4 million cubic NamWater is currently busy of NamWater, near the Arandis metres per annum in 2020. strengthening both the Kuiseb town. The six reservoirs are each To ensure sustainable use of water supply network and the 10 000 cubic metres totaling 60 underground water and avoid supply from the Omdel aquifer 000 cubic metres. excessive pressure on the water by replacing old pipelines which The Uis Tin Mine sources its table, the mine has put in place have reached the end of their water from boreholes, totalling about 100 water monitoring economic lifespan. between 70 000 cubic metres boreholes (60 on the mine site Investment in water supply and 80 000 cubic metres and more than 40 at 23 farms infrastructure by government consumption per annum. With around the mine). It is part of has been ongoing; amongst plans to expand the mining the terms and conditions of these, minister Schlettwein capacity and operations, it is the water abstraction permit during his coastal visit presided mandatory that the mine applies issued by MAWLR to ensure over the groundbreaking for the additional water supply that the mine’s water demand ceremony for the replacement borehole drilling permit from does not affect the farming of a 23.3km Kuiseb Collector the Ministry of Agriculture, communities (which also 2- Schwarzekuppe pipeline in Water and Land Reform. depends on underground water) the Erongo region at the cost of The QKR Namibia Navachab around the mine. about N$267 million. Again, this Gold Mine, outside Karibib, is to ensure provision of potable is allocated about 1,6 million Jona Musheko is a public water (to local authorities) and cubic metres of industrial relations officer in the Ministry BUSY... A NamWater construction site for new water infrastructure. industrial water to the mines and water by NamWater from the of Agriculture, Water and Land other sectors by strengthening Swakoppoort Dam, which is Reform

UNDERGROUND... B2Gold Otjikoto Mine uses underground water for its mining operations.

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