Mining 2025 Comparisons

Namibia’s mining industry is a cornerstone of its economy, contributing significantly to GDP and employment. The major features of the mining sector in Namibia are as follows.

Diverse Mineral Resources

Namibia is rich in a variety of minerals, including diamonds, uranium, gold, copper, lead, zinc and rare earth elements. The country is one of the world’s largest producers of gem-quality diamonds, primarily extracted from offshore and onshore mines.

Diamond Mining

This is the most significant sector, dominated by Namdeb (a 50/50 joint venture between the Namibian government and De Beers) and Debmarine Namibia.

Offshore diamond mining, using advanced marine technology, is a unique feature of Namibia’s mining industry.

Copper and Gold Mining

Copper and gold mining are also important, with significant operations such as the Otjikoto Gold Mine and the Tschudi Copper Mine. Exploration for new deposits continues to expand the sector.

Uranium Production

Namibia is one of the top global producers of uranium, with major mines such as Rössing Uranium and Husab Mine (operated by Swakop Uranium). The country holds some of the largest uranium reserves in the world.

Foreign Investment

Namibia’s mining industry attracts substantial foreign investment due to its stable political environment and rich mineral resources. Major international mining companies, including Rio Tinto, B2Gold and China General Nuclear Power Group, operate in the country.

Namibia operates under a common law legal system. The common law system is characterised by judicial precedent and case law, alongside statutory law. The primary sources of legislation governing mining include the Minerals (Prospecting and Mining) Act No 33 of 1992 and The Diamonds Act, 1999, which outline procedures for obtaining various mineral licences, including non-exclusive prospecting licences, exclusive prospecting licences, mining claims and mining licences.

Main Sources of Mining Legislation in Namibia

The Constitution of Namibia (1990)

This is the supreme law of the country, and provides the framework for all legislation, including mining laws. It guarantees property rights and outlines the State’s authority over natural resources.

The Minerals (Prospecting and Mining) Act, 1992 (Act No 33 of 1992)

The is the primary legislation governing mining activities in Namibia. It regulates prospecting, mining and mineral rights, and establishes the legal framework for licensing, environmental management and royalties.

Mining regulations

These regulations were made under the Minerals (Prospecting and Mining) Act and provide detailed rules and procedures for implementing the Act, including application processes, reporting requirements and environmental standards.

The Diamonds Act, 1999 (Act No 13 of 1999)

This Act regulates a wide range of matters connected with diamonds. It also establishes the Diamond Board of Namibia, the Diamond Board Fund and the Diamond Valuation Fund.

Ancillary Legislation Impacting Mining in Namibia

The Environmental Management Act, 2007 (Act No 7 of 2007)

This Act governs environmental protection and sustainable development, including provisions relevant to mining activities. It requires environmental impact assessments (EIAs) for mining projects and promotes responsible environmental practices.

The Hazardous Substance Ordinance, 1974 (Act No 14 of 1974)

This Act provides for the control of toxic substances. It covers manufacture, sale, use, disposal and dumping, as well as importation and exportation.

The Atmospheric Pollution Prevention Ordinance 11 of 1976

This provides for the prevention of air pollution. It has been earmarked for repeal as an obsolete law by the Law Reform and Development Commission.

The Forest Act, 2001 (Act No12 of 2001)

This Act consolidates the laws relating to the use and management of forests and forest produce, provides for the control of forest fires, and creates a Forestry Council.

The National Heritage Act, 2004 (Act No 27 of 2004)

This Act provides for the control and maintenance of war graves.

The Atomic Energy and Radiation Protection Act, 2005 (Act No 5 of 2005)

This Act provides for protection of the environment of the people in current and future generations against harmful effects of radiation, by controlling radiation sources and nuclear materials. It also establishes an Atomic Energy Board and a National Radiation Protection Authority.

The Water Resources Management Act, 20013 (Act No 11 of 2013)

This Act deals with the management, development, protection, conservation and use of water resources. It establishes a Water Advisory Council, a Water Regulator and a Water Tribunal, as well as Basin Management Committees and Water Point Committees. It provides for an Integrated Water Resources Management Plan and a Water Pricing Policy, and covers licensing for water services providers and for water abstraction and use. Among the other topics it addresses are management of internationally shared water resources, protection of groundwater, control of water pollution, dams, flood management and wetlands. This Act is not yet in force but will be brought into force on a date set by the Minister.

The Income Tax Act, 1981 (Act No 24 of 1981)

This governs taxation, including specific provisions for mining companies, such as royalties, corporate income tax, and deductions for mining-related expenses.

The Foreign Investment Act, 1990 (Act No 27 1990)

This Act provides for the promotion of foreign investments in Namibia.

It is to be replaced by the Namibia Investment Promotion Act, 2015 (Act No 9 of 2016), which provides for the promotion of sustainable economic development and growth through the mobilisation and attraction of foreign and domestic investment to enhance economic development, reduce unemployment, accelerate growth and diversify the economy, as well as provides for reservation of certain economic sectors and business activities for certain categories of investors.

The Export Levy Act, 2016 (Act No 2 of 2016)

This Act provides for an export levy on certain goods, to encourage further processing of resources within Namibia, among other things.

The Labour Act, 2007 (Act No 11 of 2007)

This governs employment relations in the mining sector, including worker rights, safety standards and dispute resolution.

Regulations issued under the Labour Act 1992 also relate to the health and safety of employees at work.

The Affirmative Action (Employment) Act, 1998 (Act No 29 of 1998)

This Act establishes an Employment Equity Commission and provides for affirmative action measures to achieve equal opportunity in employment for racially disadvantaged persons, women and persons with disabilities.

Mineral resources are the property of the State, not the landowner. This is established under Article 100 of the Namibian Constitution, which vests all natural resources, including minerals, in the State to ensure equitable utilisation for the benefit of all Namibians. The Minerals (Prospecting and Mining) Act, 1992 further reinforces this principle, stating that ownership of minerals is vested in the State, regardless of land ownership. Landowners do not automatically hold rights to minerals beneath their land; instead, the State grants exploration and mining rights through licences or permits. Compensation to landowners is provided for surface use or damage caused by mining activities, but this does not equate to ownership of the minerals. This legal framework ensures that mineral wealth is managed for national development and public interest.

The State plays a dual role in the mining sector as both a grantor-regulator and an owner-operator. The government, through the Ministry of Mines and Energy (MME), regulates the industry by issuing licences, enforcing compliance with environmental and safety standards, and ensuring adherence to the Minerals (Prospecting and Mining) Act.

Namibia does not mandate national or government joint ventures for all mining projects, but the State encourages local participation and beneficiation. In some cases, the government may require equity participation or partnerships, particularly for strategic minerals. Foreign investors are generally welcome, but they must comply with Namibia’s laws, including the New Equitable Economic Empowerment Framework (NEEEF), which promotes economic inclusion and local ownership.

Mineral rights are primarily governed by statutory law rather than constitutional provisions. The legal framework for mineral rights is established under the Minerals (Prospecting and Mining) Act of 1992, which vests ownership of all mineral resources in the State. The Namibian Constitution, under Article 100, vests all natural resources, including minerals, in the State. This means that the State holds ownership of mineral resources on behalf of the people, and individuals or entities cannot claim inherent ownership of mineral rights. Instead, mineral rights are granted through a legal framework rather than contractual agreements; persons obtain licences or permits to prospect or mine minerals. The State’s ownership of mineral resources is rooted in the principle of sovereignty over natural resources, which is a common feature in many African jurisdictions.

Mineral rights are granted by the national government, specifically through the MME. The granting authority is centralised at the national level, with no provincial or regional jurisdiction over mineral rights. This ensures a uniform legal framework for mining activities across the country.

There are no overlaps in jurisdiction regarding mineral rights, as the MME holds exclusive authority under the Minerals (Prospecting and Mining) Act, 1992. This Act governs the allocation, regulation and management of mineral rights, including prospecting and mining licences.

Mineral rights are granted through a licensing system rather than contracts. The MME issues various types of licences, such as reconnaissance, prospecting and mining licences, under the provisions of the Act. These licenses are subject to compliance with environmental and social regulations, ensuring sustainable resource management.

Namibia’s mineral rights are granted by the national government under the Minerals Act, with no provincial involvement or jurisdictional overlaps. The process is administrative and regulatory, not contractual.

Security of tenure for mining and exploration rights is governed by the Minerals (Prospecting and Mining) Act, 1992. Exploration licences (ELs) are granted for up to three years, renewable for two additional terms, provided the holder complies with obligations such as minimum expenditure and reporting. Upon discovery of viable mineral deposits, holders can apply for a mining licence (ML), which is granted for up to 25 years and is renewable for successive 15-year terms.

• Rights to progress from exploration to mining are secured if the applicant meets technical, financial and environmental requirements. Maintenance of tenure requires adherence to work programmes, environmental regulations, and payment of fees and royalties. Non-compliance can lead to cancellation after due process, including notice and opportunity to rectify breaches.
• Operating control is retained by the licence holder, subject to Namibian laws and regulations. Marketing of minerals is unrestricted, but export permits may be required. Licences are transferable with prior written approval from the MME, ensuring transparency and compliance.

Namibia’s legal framework provides clear pathways for tenure security, balancing investor rights with national interests and environmental stewardship.

Environmental laws and regulations are primarily governed by the Environmental Management Act (EMA) of 2007, which establishes the framework for sustainable environmental management. The Ministry of Environment, Forestry, and Tourism (MEFT) oversees environmental compliance, supported by the Environmental Commissioner.

The environmental licensing process for exploration and mining projects is conducted at the national level. Key steps include:

• environmental impact assessment (EIA) – required for projects likely to have significant environmental impacts;
• scoping and public consultation – identifies potential impacts and involves stakeholder input; and
• environmental clearance certificate – issued by the environmental commissioner upon approval.

The process is robust but can face delays due to capacity constraints. Environmental authorities are generally strong in policy formulation but sometimes lack resources for efficient enforcement. Compliance monitoring is improving, with penalties for non-compliance, including fines and project suspension. Namibia’s framework emphasises sustainable development, balancing economic growth with environmental protection.

Namibia has several environmentally protected areas, including national parks, nature reserves and World Heritage Sites, such as the Namib-Naukluft Park and the Namib Sand Sea. These areas are governed by strict environmental regulations to preserve biodiversity and ecosystems. Exploration, development and mining activities in or near these protected areas are heavily restricted. Companies must conduct EIAs and obtain permits from the MEFT. Activities that could harm the environment or wildlife are often prohibited, and mining is typically not allowed in core protected zones.

These restrictions can limit access to mineral resources, increasing costs and delays for mining companies. However, they also encourage sustainable practices and the development of alternative sites. Namibia’s commitment to conservation balances economic growth with environmental protection, ensuring long-term ecological health while allowing responsible resource exploitation.

In Namibia, community relations in mining projects are governed by a combination of legal frameworks, policies and best practices aimed at ensuring sustainable development and social responsibility. Key mechanisms include:

• EIAs – mining projects must undergo EIAs, which include public consultations to gather community input and address concerns;
• mining policies and legislation – the Minerals Policy (2022) and Minerals Act (1992) emphasise community engagement, benefit-sharing and environmental protection, and the Communal Land Reform Act (2002) also ensures that communities have a say in land use;
• corporate social responsibility (CSR) – mining companies are encouraged to invest in local development projects, such as education, healthcare and infrastructure, to foster positive community relations;
• benefit-sharing agreements – companies often negotiate agreements with local communities to ensure that they benefit from mining activities, including employment opportunities and revenue-sharing;
• stakeholder engagement – regular dialogue with community leaders and stakeholders is mandated to maintain transparency and address grievances; and
• Traditional Authorities – engagement with traditional leaders is crucial, as they play a significant role in representing community interests.

These measures aim to balance economic development with social and environmental considerations, ensuring that mining projects contribute positively to local communities.

Prior and informed consultation is not explicitly mandated by a single overarching law but is guided by principles in the Constitution, environmental regulations, and international commitments such as the UN Declaration on the Rights of Indigenous Peoples. Consultation is typically required for projects impacting indigenous communities or natural resources, such as mining or land use changes.

Mining and prospecting activities require an environmental clearance certificate in terms of the Environmental Management Act, 2007 (Act No 7 of 2007), which requires consultation with affected stakeholders. The responsibility for conducting consultations falls on the investor or mineral right holder, under the oversight of and in terms of the aforementioned environmental laws. For example, EIAs require public participation, including consultations with affected communities. The State ensures compliance with legal frameworks but does not directly carry out the consultations.

In practice, the effectiveness of these consultations varies, and challenges such as inadequate implementation or limited community participation have been reported. While the State enforces the process, the investor is primarily responsible for engaging with communities in a meaningful and transparent manner.

Namibia recognises and protects indigenous and traditional communities through the Traditional Authorities Act, 2000 (Act No 25 of 2000). This Act allows traditional communities to establish traditional authorities, comprising a chief or head and traditional councillors, to oversee customary laws, cultural preservation and community welfare. These authorities are empowered to promote peace, uphold traditions and manage natural resources sustainably. When applying for mineral licences concerning land that is situated on communal land, an applicant would be required to give prior notice to the Chief or Traditional Authority of the traditional community, and the Communal Land Board, of its intention to apply.

Additionally, the Environmental Management Act, 2007 (Act No 7 of 2007) mandates EIAs to ensure that development projects consider environmental and social impacts, including effects on indigenous communities. The MEFT oversees the implementation of this Act.

Community development agreements (CDAs) are not explicitly mandated by law but are increasingly common, particularly in the mining and extractive industries. These agreements are often established as part of CSR initiatives or through negotiations between companies, local communities and government entities. They aim to ensure that local communities benefit from resource extraction or large-scale projects through job creation, infrastructure development and social programmes.

The Minerals Policy of Namibia and the Environmental Management Act provide frameworks for community engagement and benefit-sharing, but they do not explicitly enforce CDAs. Instead, companies often adopt them voluntarily to foster good relations with communities and secure social licences to operate. CDAs are not mandatory in Namibia but are increasingly practised, especially in industries with significant environmental and social impacts. Their adoption reflects a growing emphasis on inclusive development and community empowerment.

Namibia has not introduced formal ESG guidelines for the mining sector; however, the MME does have a “Minerals Policy” addressing social and environmental aspects of mining, and the Namibian Chamber of Mines has developed a Best Practice Guide, “Environmental Principles for Mining in Namibia”.

Namibia’s mining sector is increasingly emphasising ESG principles to promote sustainable development and responsible mining practices. The MME mandates that mining companies adhere to ESG standards, focusing on environmental protection, social responsibility and good governance. While a formalised ESG framework is still under development, existing regulations such as the Environmental Management Act of 2007 require EIAs for activities likely to affect the environment. The MME’s Code of Conduct reflects principles of personal integrity, accountability and respect for others, aligning with ESG objectives.

Illegal mining is a concern in Namibia, particularly in diamond-rich areas and in small-scale mining areas such as Erongo. It disrupts legal mining by causing environmental harm and unsafe conditions. The MME, alongside law enforcement, is actively addressing the issue. Key regulations include the Minerals (Prospecting and Mining) Act (1992) and the Environmental Management Act (2007), which impose penalties for illegal activities. The Minerals Ancillary Rights Commission (MARC) mediates disputes.

Despite efforts, illegal sand mining remains problematic. The MME, with United Nations Development Programme (UNDP) support, provides safety equipment and geotechnical assistance to small-scale miners while encouraging legal compliance and enforcement.

The MME oversees mining projects, which have demonstrated both commendable and concerning practices in environmental stewardship and community engagement.

A good example of community relations is the Rössing Uranium Mine. Notably, in 2023, Rössing invested over NAD41 million in community initiatives, including substantial support for the Rössing Foundation. The mine engages stakeholders through regular communications, public meetings and collaborative projects, ensuring transparency and fostering trust within the community.

A bad example is Uis Tin Mine (historical). In the past, the mine caused environmental degradation and displacement of local communities without adequate consultation or compensation, leaving lasting negative impacts.

Early operations of Navachab Gold Mine faced criticism for insufficient community engagement and environmental concerns, such as water pollution. However, recent efforts have improved relations and sustainability practices.

Overall, successful projects prioritise transparent communication, environmental stewardship and community benefits, while failures often stem from inadequate consultation and poor environmental management. Namibia’s legal framework, including the Environmental Management Act, encourages better practices, but enforcement and corporate responsibility remain critical.

Climate change initiatives are significantly impacting the mining industry, which is a cornerstone of the economy. The government and private sector are increasingly focusing on sustainable practices to mitigate environmental degradation and comply with global climate goals.

• Renewable energy integration: mining companies are adopting renewable energy sources, such as solar and wind, to reduce carbon emissions.
• Water management: given Namibia’s arid climate, water scarcity is a critical issue. Mining firms are investing in advanced water recycling and desalination technologies to minimise water usage and ensure sustainable operations.
• Regulatory compliance: stricter environmental regulations are being enforced, requiring mines to adopt greener technologies and practices. This includes reducing greenhouse gas emissions, managing waste more effectively, and rehabilitating mined land.
• Economic diversification: the push for sustainability is driving innovation and diversification within the mining sector. Companies are exploring greener mining techniques and alternative minerals, such as those used in renewable energy technologies, to align with global trends.

While these initiatives present challenges, such as increased operational costs, they also offer opportunities for long-term sustainability and resilience in Namibia’s mining industry. The transition towards greener practices is essential for the sector’s viability in a changing climate.

Namibia has not enacted specific climate change legislation focused solely on mining. However, the country is increasingly integrating climate considerations into its broader environmental and mining policies. Namibia’s Environmental Management Act of 2007 provides a framework for environmental protection, including provisions for EIAs that apply to mining activities. These EIAs often address climate-related risks, such as greenhouse gas emissions and water resource management.

The Namibian government has also committed to international climate agreements, such as the Paris Agreement, which influences national policies, including those affecting the mining sector. Discussions around renewable energy adoption and carbon reduction in mining operations are gaining traction, particularly as Namibia aims to leverage its vast renewable energy potential to support sustainable mining practices.

Key features of ongoing discussions include promoting energy efficiency, reducing carbon footprints, and ensuring that mining projects align with national climate goals. The government is also exploring incentives for mining companies to adopt cleaner technologies and renewable energy sources. While comprehensive climate-specific mining legislation is not yet in place, these efforts reflect a growing recognition of the need to balance mining development with climate resilience.

Namibia has several sustainable development initiatives which indirectly impact mining. The country focuses on the following.

• Renewable energy, particularly solar and wind power, to reduce reliance on fossil fuels. Community-based natural resource management (CBNRM) programmes empower local communities to manage wildlife and tourism sustainably, promoting conservation and economic growth.
• Namibia also prioritises water conservation and sustainable agriculture to combat desertification and ensure food security. Additionally, the government supports green building practices and waste management systems to minimise environmental impact.

These efforts align with Namibia’s commitment to the United Nations Sustainable Development Goals, fostering long-term ecological and economic resilience.

Namibia has recognised the growing global demand for energy-transition minerals and has taken steps to capitalise on its rich mineral resources, including lithium, cobalt, rare earths and copper. The government has implemented policies to attract investment in mining while ensuring sustainable development. Key initiatives include the Green Hydrogen and Energy Transition Strategy, which aligns with mineral exploitation for renewable energy technologies. Additionally, Namibia passed the Minerals Policy in 2022, emphasising value addition, local beneficiation, and environmental sustainability in mining operations.

Furthermore, the Namibia Investment Promotion and Development Board (NIPDB) actively promotes investment in the mining sector, particularly for energy-transition minerals. Legislative frameworks, such as the Minerals Act, are being reviewed to streamline licensing and ensure compliance with ESG standards.

The tax system for exploration and mining is governed by the Income Tax Act and the Minerals (Prospecting and Mining) Act. Companies engaged in mining operations are subject to corporate income tax at a rate of 37.5%, while non-mining companies are taxed at 32%. Additionally, a mineral royalty is imposed on the gross sales value of minerals extracted, ranging from 2% to 10%, depending on the type of mineral and its stage of processing. Royalties are revenue-based, not profit-based, meaning they are calculated on gross sales rather than net profits.

The royalties amount to 3% in respect of precious metals, base and rare metals, and nuclear fuel minerals, and to 2% in respect of semi-precious stones, industrial minerals and non-nuclear fuel minerals.

Namibia’s tax legislation does not distinguish between national and foreign investors, ensuring equal treatment under the law. However, foreign investors may be subject to withholding taxes on dividends, interest, and royalties paid to non-residents. The country also offers various tax incentives, such as accelerated depreciation and deductions for exploration expenses, to encourage investment in the mining sector.

Namibia’s tax incentives aim to create a favourable investment climate, balancing the need to attract foreign investment with the country’s economic development goals.

Namibia offers several tax incentives to attract mining investors and projects. These include:

• accelerated depreciation on mining assets, allowing investors to write off capital expenditure more quickly;
• deductible exploration and development costs from taxable income; and
• a provision for carrying forward tax losses indefinitely, which helps mitigate the impact of initial investment losses.

Namibia does not impose capital gains tax, which is beneficial for investors selling mining assets. Furthermore, the government offers reduced royalty rates for certain minerals, depending on the level of processing done locally, encouraging value addition within the country.

If Namibia has entered into a double tax agreement with the country where the foreign company resides, such company will only be taxable in Namibia if it has established a permanent establishment in Namibia. Non-residents who do not have a place of business in Namibia may, however, be subject to withholding taxes.

Namibia has concluded double taxation treaties with only a handful of countries. These are Botswana, France, Germany, India, Malaysia, Mauritius, Romania, the Russian Federation, South Africa, Sweden and the United Kingdom. Although a double taxation treaty has been concluded with Canada, it has not been ratified as of the date of this publication.

The Income Tax Act, 1981 provides that any amount that is received or accrued from another person, as consideration for the sale or transfer of ownership of a mineral licence, or a right to mine minerals in Namibia, would be deemed to constitute gross income on which income tax is payable, and this includes the sale or transfer of any share in a company that holds a mineral licence or mineral right, whether directly or indirectly. Where the person acquiring the right is a person other than a natural person, the transfer duty will be levied at 12% of said value of the property.

Namibia is also increasingly aligning with international tax standards, including anti-avoidance measures, to address cross-border transactions that may erode the local tax base. Therefore, even transfers through offshore structures may trigger tax liabilities in Namibia.

Namibia is a prime destination for mining investment due to its rich mineral resources, stable political environment and investor-friendly policies:

• resource richness – the country is rich in minerals such as diamonds, uranium, gold and rare earth elements, offering significant exploration and extraction opportunities;
• mining-friendly policies – the government offers incentives such as tax breaks, duty exemptions on mining equipment, and streamlined licensing processes;
• infrastructure – Namibia has well-developed infrastructure, including roads, railways and ports, facilitating efficient mineral exportation;
• skilled workforce – a growing pool of skilled labour and vocational training programmes support the mining sector;
• environmental regulations – clear and sustainable environmental policies ensure responsible mining practices, appealing to socially conscious investors; and
• investment protection – bilateral investment treaties and membership in international organisations such as the Southern African Development Community (SADC) provide additional security for foreign investors.

These factors collectively make Namibia an attractive destination for mining investment.

In the mining industry, additional measures are in place to promote local participation. As of 1 April 2021, the MME mandated that all mining licence applications must allocate a minimum of 15% ownership to Namibian citizens. This requirement applies both to new applications and the transfer of existing licenses to foreign entities, ensuring a sustained local stake in mining operations.

Foreign investment in Namibia is largely regulated by the Foreign Investment Act No 27 of 1990. 

The Foreign Investment Act was intended to be repealed by the Namibia Investment Promotion Act, 2016, but the latter Act has not yet come into force and is expected to either be amended substantially or substituted by a new Act dealing more particularly with foreign investment.

The Foreign Investment Act expressly stipulates that, subject to its provisions and the compliance with any formalities or requirements prescribed by any law in relation to the relevant business activity, a foreign national may invest and engage in any business activity in Namibia which a Namibian may undertake, and that for the purposes of any law governing the establishment and carrying-on of any business activity or the taxation of the income, or any other aspect, of a business activity, a foreign national will not be in a different position than any Namibian, except as may be otherwise provided by the Foreign Investment Act.

The Foreign Investment Act also stipulates that no foreign national engaged in a business activity in Namibia is required to provide for the participation of the government or any Namibian as shareholder or as partner in such business, or for the transfer of such business to the government or any Namibian – provided, however, that it may be a condition of any licence or other authorisation to, or any agreement with, a foreign national for the granting of rights over natural resources that the government shall be entitled to or may acquire an interest in any enterprise to be formed for the exploitation of such rights.

Neither the Foreign Investment Act nor other legislation applicable to foreign investors also provides for a review of foreign investment, other than stipulating that the Minister of Trade and Industry may issue a certificate of status investment that confers benefits in respect of exchange control restrictions.

If the investment of foreign assets is an eligible investment as defined in Section 5 of the Foreign Investment Act (ie, an investment in Namibia by a foreign national of foreign assets with a value of not less than NAD2 million), the Minister of Trade and Industry may also – subject to the provisions of the Foreign Investment Act – issue a certificate of status investment in respect thereof. Such certificate confers benefits in respect of exchange control restrictions, and makes certain provisions of the Foreign Investment Act applicable to a foreign investor who has been issued such certificate.

These provisions provide for:

• the availability of foreign currency for certain payments;
• transfer of profits and proceeds of sale;
• retention of foreign currency obtained from a sale of exported goods;
• compensation in the case of expropriation; and
• settlement of disputes in respect of status investments.

The Foreign Investment Act also provides that no enterprise, or part of an undertaking carried on by an enterprise, or interest in or right over any property forming part of such undertaking, shall be expropriated, except in accordance with the provisions of Article 16(2) of the Constitution, which provides that the State may expropriate property in the public interest subject to the payment of just compensation, in accordance with requirements and procedures to be determined by an Act of Parliament.

Further, the Agricultural (Commercial) Land Reform Act, Act No 6 of 1995 provides that a foreign national requires prior consent from the Minister of Land Reform to acquire agricultural (farming) land.

Article 16(1) of the Namibian Constitution also provides that all persons shall have the right to acquire, own and dispose of immovable and movable property, provided that Parliament may by legislation prohibit or regulate as it deems expedient the right to acquire property by persons who are not Namibian citizens.

Namibia also does not impose performance requirements on foreign investors as a condition for establishing, maintaining or expanding investments. The requirements in place are mostly imposed as a condition to accessing tax and investment incentives. For example, to benefit from incentives in a planned export processing zone, investors are required to export a certain percentage of the finished product.

There is also no legal requirement for investors to purchase from local sources; however, for certain industries, there are local content requirements in order for final products to qualify for exemptions from duties under the Southern African Customs Union.

Namibia is a part of multilateral and bilateral treaties that favour and protect investments in exploration and mining.

Multilaterally, Namibia is a member of the SADC, which promotes regional co-operation and investment protection. It is also a signatory to the SADC Protocol on Finance and Investment, which provides safeguards for foreign investors, including those in mining. Additionally, Namibia is a member of the Common Market for Eastern and Southern Africa (COMESA), which offers investment protection frameworks.

Namibia is also a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, ensuring international arbitration for investment disputes. Furthermore, it is a member of the International Centre for Settlement of Investment Disputes (ICSID), providing a platform for resolving investor-state disputes.

Bilaterally, Namibia has signed bilateral investment treaties (BITs) with countries such as Germany, Switzerland and China, which protect foreign investments, including those in mining, by ensuring fair treatment, protection from expropriation, and dispute resolution mechanisms. These treaties aim to create a stable and predictable investment climate, encouraging foreign direct investment in Namibia’s resource-rich sectors.

Overall, these multilateral and bilateral agreements provide a robust legal framework to protect and promote investments in Namibia’s exploration and mining industries.

The primary sources of finance for exploration, development and mining activities include a mix of:

• equity financing;
• debt financing; and
• government support.

Equity financing is commonly sourced from local and international investors, including mining companies, venture capital firms, and stock exchanges such as the Namibian Stock Exchange (NSX) and the Johannesburg Stock Exchange (JSE). Junior mining companies often raise capital through initial public offerings (IPOs) or private placements.

Debt financing is another key source, with commercial banks, development finance institutions (DFIs) and international lenders providing loans and credit facilities. Institutions such as the Development Bank of Namibia (DBN) and international entities such as the African Development Bank (AfDB) play a significant role in funding mining projects. Government support is also critical, with the Namibian government offering incentives such as tax breaks, grants and partnerships through State-owned entities such as Epangelo Mining. Additionally, foreign direct investment is a major contributor, as Namibia’s stable political environment and rich mineral resources attract global mining companies.

Joint ventures and partnerships between local and international firms are common, enabling risk-sharing and resource pooling. These combined financing mechanisms ensure the sustainable development of Namibia’s mining sector.

While domestic and international securities markets play a significant role in financing mining projects in Namibia, most investment comes from private investors in the form of foreign direct investment.

The domestic securities market, primarily through the NSX, provides a platform for local and regional companies to raise capital by issuing shares or bonds. This is particularly important for junior mining companies seeking funding for exploration and early-stage development. The NSX also facilitates listings for international companies, enhancing access to capital from Namibian and Southern African investors.

Internationally, Namibian mining companies often tap into larger, more liquid markets such as the JSE, London Stock Exchange (LSE) or Toronto Stock Exchange (TSX) to attract global investment. These markets offer access to a broader investor base, including institutional investors and mining-focused funds, which are essential for large-scale mining projects requiring significant capital.

International partnerships and foreign direct investment are critical, as Namibia’s mining sector is heavily reliant on external funding due to the high costs and risks associated with exploration and development. The government supports this through favourable policies and regulatory frameworks, encouraging foreign participation while ensuring compliance with local laws.

The legal framework governing security over mining tenements and related assets is primarily established under the Minerals (Prospecting and Mining) Act, 1992 and the Companies Act, 2004, as well as other relevant legislation such as the Insolvency Act, 1936 and the Registration of Deeds Act, 1937. The following are the key legal features relating to security over mining tenements and related assets in the context of exploration, development and mining finance.

• To create security, a notarial bond over movable property is typically registered with the Deeds Registry. This bond must specify the tenements and related assets (eg, machinery, equipment and minerals) being pledged. The bondholder gains a preferential claim over the assets in the case of default, but perfection of the security requires physical possession or control, which can be challenging for mining operations.
• Lenders often require cession of rights to receive proceeds from mineral sales or insurance payouts. The Minerals (Prospecting and Mining) Act allows for the transfer or cession of mining licences with ministerial approval, ensuring transparency and compliance.

Namibia’s legal framework also recognises international financing arrangements, allowing foreign lenders to take security over mining assets.

Security over mining tenements and related assets is governed by the Minerals (Prospecting and Mining) Act, 1992, and the common law principles of security. Mining tenements, including prospecting and mining licences, are considered movable property and can be used as collateral for financing exploration, development and mining activities.

See 5.6 Security Over Mining Tenements and Related Assets.

Namibia’s legal framework also recognises international financing arrangements, allowing foreign lenders to take security over mining assets.

The global shift towards clean energy has heightened demand for critical minerals such as lithium, copper and uranium – resources that are abundant in Namibia. This surge in demand has led to increased exploration activities within the country. Notably, Namibia’s mining industry experienced substantial growth in 2022, with a 44% increase in diamond production and a marked rise in exploration expenditures targeting these critical minerals.

Namibia is actively pursuing strategies to align its mining operations with global carbon neutrality goals. The integration of renewable energy sources into mining activities is a pivotal step in this direction. By adopting renewables, mining companies can reduce energy costs and lower emissions, thereby enhancing the global competitiveness of Namibian mineral products. This approach not only supports environmental objectives but also meets the growing market demand for sustainably sourced minerals.

To support these initiatives, Namibia is expected to update its mining-related legislation. Key pieces of legislation and policy, including the Minerals (Prospecting and Mining) Act and the Minerals Policy, are in need of revision.