Home > Operating in Namibia

Operating in Namibia

Mining in Namibia, a Resource Rich Jurisdiction

A Compelling Investment Proposition

Namibia offers an attractive mining environment benefitting from a stable democracy, strong rule of law and clear regulations. The country’s burgeoning international reputation has been driven by three decades of effective social and environmental policy, supported by a strong mining industry. Government finances are well managed, with Namibia maintaining attractive Sovereign Ratings with Moody’s (B1 Positive) and Fitch Ratings (BB- Stable).

Mining remains a mainstay of Namibia’s economy and one of the largest contributors to GDP, exports and government revenues. The country maintains a transparent system of mineral and surface title with supportive mining policy.

The attractive investment environment is underpinned by a stable tax code and investor-friendly fiscal terms:

  • 37.5% corporate tax
  • 3% royalty
  • 1% export levy
  • 15% VAT

Stable Political and Economic Environment

The Republic of Namibia, An Independent Country

Three decades after independence, Namibia has emerged as one of the most politically stable countries in Africa. Despite inheriting one of the world’s highest levels of inequality prior to independence in 1990, the country is now recognised for its social and environmental stewardship.

Effective social and natural resource management policy have been key drivers of Namibia’s progression and growing international regard. Adopted in 1990, the country’s constitution was one of the first in the world to enshrine the protection of the environment. Namibia now stands as the only country in the world to have a completely protected coastline, whilst around 65,000 square miles (20% of the country) is managed by community-based conservancies.

Within this framework, there exists well established and stable laws for responsible mining and infrastructure investment. Mining is a major contributor to GDP, and post-independence, Namibia has attracted investments exceeding US$5bn to develop new mines, including the world’s second largest uranium mine and a global top ten zinc mine.

As a cornerstone of the Namibian economy, mining has been a key enabler for the Namibian Government to deliver key social and environmental objectives during the post-independence era. To date these accomplishments have included a more than halving of the national poverty rate, the near eradication of malaria, and free schooling supported by the world’s second-highest percentage of overall budget spent on education.

Education has been a critical driver of Namibia’s progress over the last three decades, supported by an experienced local workforce. Approximately 97% of workers in the mining industry are Namibians and persons employed by the mining industry are estimated to directly and indirectly contribute to the livelihood of four per cent of the total population.

As it prepares to invest in Namibia’s next generation of copper mines, CCC is committed to maximising employment, education and social initiatives directly surrounding its operations and indirectly through production royalties and taxes to the Government. The Company has constructed its core values around the concept of ‘Responsible Copper’, ensuring decision makers and employees are aligned with the key principals driving Namibia’s post-independence success.

The Namibian Mining Landscape

A Growing Copper Producer

Namibia has a well-established, albeit young mining industry by world standards. Supported by an experienced and technically strong Namibian workforce, CCC is focused on developing the country’s next generation of responsible copper mines.

To date, much of the country’s copper production has originated from mines occupying the Kaoko and Kalahari copper belts as well as the prolific but now closed Tsumeb mine. Whilst deposits along the Kalahari and Kaoko copper belts are considered geologically similar to their counterparts in Zambia and Democratic Republic of Congo (DRC), production to date remains nascent by comparison.

Extending over 400km, copper-cobalt deposits of the Central African copper belt of Zambia and DRC together account for a significant share of the world’s mined copper supply.

By comparison, the Kalahari copper belt is twice as long, stretching over 800km from Namibia into neighbouring Botswana. Kalahari copper belt production to date has yet to reach significant levels by world standards in large part due to the presence of desert coverage up to 100m thick, which disincentivised historical exploration.

This is changing following application of modern exploration last decade which confirmed extensions of the Kalahari copper belt into eastern Namibia, and development of two new world class copper mines across the border in Botswana (Khoemacau and Motheo).

The Khoemacau copper mine, owned by MMG, is one of the world’s largest copper mines to be developed in the past decade. Current production is approximately 50kt copper, with a board approved expansion to 130kt per annum planned by 2028.

Through the application of value engineering and modern systemic exploration at Tschudi, Matchless and Otjihase, CCC aims to rejuvenate these major employment hubs and help elevate Namibian copper production from its current nascent levels on the world stage.