The Chamber of Mines of Namibia says high inflation and interest rates had an effect on mineral prices in September, with gold and tin prices lower than the previous month.
“Although year-to-date average prices remain higher for [other] minerals, persistent inflation and elevated interest rates pose risks to further price gains,” the chamber said in a media statement on Monday.
High fuel costs have increased the costs to operate mines, while high interest rates have made investments in mining more risky.
“Although long-term fundamentals for minerals such as gold, uranium, copper and other critical minerals remain strong, higher financing and operating costs could delay mine expansions, new developments and exploration,” the chamber said.
Mining output for September decreased by 4% compared to the previous month, driven by a decrease of 12% in diamond production.
“Near-term cost and macroeconomic pressures are real, but firm gold and uranium prices and a strong project pipeline keep the outlook for Namibia’s mining sector positive,” said Fabian Shaanika, chief executive of the Chamber of Mines of Namibia.
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