Mining sector performance falls by 3.1% in Three Months

By: Elizabeth Naftal

Namibia’s mining and quarrying sector fell by 3.1% between April and June 2026 compared with the same period last year, while the overall economy grew by 4.8%.

According to the Chamber of Mines of Namibia, the contraction was primarily driven by lower uranium and metal ore production which contracted by 12.1% and 20% respectively, making mining the largest negative contributor to economic growth during the second quarter.

Gold production has also declined as B2Gold’s Otjikoto mine has moved from open-pit to underground operations.

However, mining activity picked up in July. According to the Chamber, the Mining Composite Production Index rose by 7.7% from June and by 2.3% compared with July 2025, driven by a recovery in uranium and zinc output.

At the same time, mineral prices have remained high, with copper reaching a record monthly average of US$14,326 per tonne in August, while tin reached US$55,385 per tonne. Copper prices have risen by 48% from a year earlier, while tin has increased by 64%.

Furthermore, the Chamber reported that gold has also remained valuable at an average of US$4,411 per ounce, while uranium has traded at around US$86 per pound, helping to support export earnings despite weaker production in some areas.

The data also indicate that diamonds and uranium generated about N$3.9 billion in export earnings in July, with gold contributing N$1.91 billion, followed by diamonds at N$1.39 billion and uranium at N$625 million.

However, rising operating costs have continued to put pressure on mining companies, as inflation reached 5.0% in August and transport inflation increased to 13.2%. Diesel prices have also risen by about 42% between March and September, from N$19.63 to N$27.86 per litre.

Chamber of Mines Chief Executive Officer, Fabian Shaanika said 2026 remains a transition year for Namibia’s mining sector, while strong mineral prices have helped the industry manage weaker production and rising costs.

“While production volumes remain subdued, strong commodity prices are providing an important buffer, supporting export earnings and helping the industry navigate the current period of weaker output and increasing cost pressures,” he said.

The sector is expected to improve from 2027 as projects such as Rosh Pinah RP2.0, Langer Heinrich, Twin Hills, Etango and Tumas advance, alongside ongoing underground developments at Navachab and Otjikoto.