Mining in Namibia

Exploration & production of minerals in Namibia requires obtaining an environmental control certificate. The Minister of Mines & Energy cannot issue a mining license until the applicant has received an environmental permit certificate. The mining industry in Namibia is administered by the Ministry of Mines & Energy and its minister. The minister is assisted by a mining commissioner. 

Namibia: Obtaining a License for Exploration & Production of Minerals

There’s several types of a mineral exploration permit in Namibia:

• non-exclusive;
• exclusive;
• exploration.

Obtaining a mineral exploration license in Namibia entitles its owner to conduct exploration for any mineral or group of minerals by using geophysical surveys, photo geological mapping or aerial imagery. The said permit for mineral exploration in Namibia is valid for a maximum of 6 months and can be renewed once for six months.

Carrying out geological exploration works requires getting non-exclusive & exclusive licenses. Mineral exploration in the Republic of Namibia stands for deliberate exploration of any mineral or group of minerals for the purpose of identifying or assessing availability of the said minerals. The validity term of a non-exclusive license is one year, with no possibility of extension. The validity term of an exclusive exploration license is 36 months; it can be extended 2 times for a total of 24 months (per extension)l. Further extension is only possible if it fosters further development of  the Namibian mining industry.

Mining in the Republic Namibia can be conducted on the basis of mining licenses or claims. Holders of a non-exclusive exploration license can apply for a license authorizing mining activities in the Republic of Namibia, whose size cannot exceed three hundred meters by six hundred meters. This claim is then filed with the ministry, which gives the holder the right to engage in mining activities in Namibia. The claim is valid for three years and can be renewed for 2 years. The owner of an exclusive exploration license can apply for a mining license in Namibia. A mining license is valid for 25 years and can be renewed for subsequent periods of fifteen years per renewal.

Namibia: Obtaining a License for Oil & Gas Production 

The Petroleum Law covers exploration, production & disposal of oil, as well as control over oil. Pursuant to it, all rights in relation to oil production belong to the state. No one can carry out any operations in relation to oil without a respective license issued by the Ministry of Mines & Energy. The law also provides for the payment of royalties.

Export of Minerals from Namibia

There’s certain restrictions on the export of minerals from Namibia. No one may, except with the written permission of the Minister, export any minerals from Namibia. The export of diamonds is also strictly regulated.

Royalties & Taxes

Namibia uses a royalty system in combination with corporate income tax to generate income that distributes the risk of mining between states and companies.

• Mineral royalty rates: 10%.
• Uranium mines: 6%.
• Gems: 3%.
• Nuclear fuel minerals: 3%.
• Semi-precious stones, industrial and non-minerals: 2%.
• Other minerals: 37.5%.
• Mining: 40%
• Dividend Tax: 10% payable to non-residents and some foreign residents.
• Royalty: 10.5% on payments to non-residents.
• Value added tax 15%.