Clemencia Jacobs
10 July 2009
Windhoek — New royalty rates payable on minerals other than precious and dimension stones will benefit the Namibian people, as these will result in citizens receiving an equitable share from the country's resources, says Joseph Iita, permanent secretary in the Ministry of Mines and Energy.
Iita said despite concern by the Chamber of Mines that the new rates will scare investors away, more are in fact attracted because of the country's "favourable mining regime".
"I do not agree that too much power is vested in the Minister. In any case, where would the chamber like to see the power vested in? After all, the Minister represents the interests of the Namibian people and is overall responsible for the implementation of policy and legislation pertaining to exploration and mining. There is therefore enough protection in the law for the investors," he said in response to the chamber's claims that too much power is given to Erkki Nghimtina, Minister of Mines and Energy.
The Chamber of Mines said while it appreciates the rationale behind the amendments, it is not in the interest of the country's mining industry.
"As the mining industry was not privy to the Amendment Bill until it was in Parliament, the chamber made a desperate attempt to convince the government to withdraw the draft legislation from Parliament to enable further consultations," said Veston Malango, general manager of the chamber in a statement.
He said the chamber went an extra mile in making a comprehensive submission with alternative proposals for the "desired" amendments to the Minister of Mines and Energy in mid December 2008, but it was too late as the Bill had already been signed into law.
The Minerals Amendment Bill was signed into law on 14 December last year and was gazetted and published on 29 December.
Malango said the chamber is engaged in negotiations with the ministry to find an amicable solution without shaking investor confidence in Namibia.
At the moment, the royalty rates remain the same for most companies except for Rössing Uranium, which will now pay a royalty of 6% on gross sales of uranium.
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