Namibians not serious about exploration: Alweendo

WINDHOEK, 01 NOV – Most Namibians with exclusive prospecting licences do not apply with the intention to carry out exploration in the mining sector, but rather do so with the aim of selling the EPLs off.
Minister of Mines and Energy, Tom Alweendo revealed these findings in the National Assembly when he spoke at length about EPLs while responding to media reports.
The reports said the ministry will do away with a policy that gave preferential consideration to companies owned by Namibians in the allocation of exploration and mining licences.
“Our analysis has shown that most Namibians that apply and are issued with EPLs do not apply with the serious intention to carry out exploration,” Alweendo said.
On the removal of additional EPL conditions, the wrong impression is being created that Government is no longer interested in local ownership in the mining sector, he added.
Instead, Government removed the additional preferential EPL requirements on the grounds that they are not practical and will be difficult to enforce.
The requirements in question were introduced by Government in 2015 in a bid to empower Namibians in the extractive industry.
They included among others that previously disadvantaged Namibians make up at least 20 per cent of the management structures of a given mining and exploration company.
Such a clause is not feasible, according to the mines minister, as most exploration entities do not have formalised structures.
“A formalised management structure is only put in place once minerals have been discovered,” he said.
Alweendo added that this clause would also only be applicable to 8 per cent of EPLs, given that 92 per cent of all EPLs are in the hands of Namibians.
“It was on that basis that we decided to do away with additional conditions pertaining to EPLs,” the minister stated.
The ministry however opted to continue with the additional conditions for mining licences because they firmly believe that Namibians must participate in mining operations.
“Our objective should be to discover more minerals in the most effective manner possible,” he noted, before adding that having more mines would enhance the sector’s contribution to the economy.
Statistics availed by the minister show that there are 909 active EPLs, covering an area of 29.8 million hectares.
There are 165 active mining licences, of which 58 are owned by Namibians.
(NAMPA)