Namibia’s uranium exports jumped 438% to N$3.36 billion in August, lifting minerals’ share of domestic exports to 72% despite falling diamond production and an overall decline in mining output.
The Chamber of Mines of Namibia’s September monthly mining update shows that minerals accounted for 72% of the country’s domestic exports in August, up from 62% in July.
Mineral exports were valued at N$9.33 billion.
The increase in uranium exports followed the resumption of full production at the Husab Mine in July after a planned maintenance shutdown in June.
However, the stronger export performance did not reflect an across-the-board improvement in mining activity.
The Mining Production Composite Index declined by 4% month on month in August, largely due to a 12% drop in diamond production.
Chamber of Mines chief economist Lauren Graham says uranium, zinc and gold production increased by 8%, 27% and 4%, respectively, but these gains were insufficient to offset the decline in diamonds because of the mineral’s larger weighting in the index.
The figures highlight the uneven performance of Namibia’s mining industry, where stronger activity in some minerals has not been enough to prevent an overall decline in production.
Despite the monthly decline, the sector continues to benefit from relatively firm mineral prices, particularly for gold and uranium. However, Graham warned that rising costs and broader economic pressures could affect the outlook.
“Although year-to-date average prices remain higher for these minerals, persistent inflation and elevated interest rates pose risks to further price gains,” she says.
Namibia’s headline inflation increased to 5.4% in September from 5.0% in August, partly reflecting higher fuel costs linked to the ongoing war in the Middle East.
The average price of Brent crude oil rose by 28.5% to US$1 920.50) a barrel in September, while petrol and diesel prices increased by 30.4% over the same period, adding pressure to mining operating costs and profit margins.
Graham says it was too early to determine how much higher inflation and interest rates would offset favourable long-term demand fundamentals, particularly for gold, uranium and copper.
She adds that higher average gold and uranium prices were expected to help offset lower production volumes in the short term, supporting export earnings and government revenue.
The mining sector remains a key contributor to Namibia’s economy, accounting for roughly 13.5% to 14% of nominal gross domestic product.
The chamber expects new mines and expansion projects to support the sector’s medium- to long-term prospects.
These include Bannerman’s Etango uranium project, Reptile Uranium’s Tumas uranium project and Osino Resources’ Twin Hills gold project, alongside the ramp-up of Langer Heinrich and the Rosh Pinah RP2.0 expansion.
Chamber of Mines chief executive Fabian Shaanika says rising costs remained a concern, but firm gold and uranium prices and the pipeline of new projects continued to support the sector’s outlook.
“Near-term cost and macro-economic pressures are real, but firm gold and uranium prices and a strong project pipeline keep the outlook for Namibia’s mining sector positive,” he says.
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