SP TLIGHT ON MINING 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 Karibib, 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 Namibia 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.