Namibia's Shifting Mining Landscape: Uranium and Gold Outshine Diamonds

Namibia traditionally relied on diamond exports for revenue, but recent trends show gold and uranium surpassing it due to record prices and increased output. Diamonds faced a price decline, prompting Namibia to embrace a diversified mining revenue base.

Namibia's diamond revenue has, for the first time, been exceeded by income from other minerals, a significant shift noted by the country's mining chamber. The rise in gold prices and uranium production has cushioned the impact of declining diamond prices, once a major contributor to the nation's economy.

Diamond tax revenue fell sharply by 79% year on year. This decline underscores a structural shift towards a more varied and resilient mining revenue base, according to the Chamber of Mines of Namibia's October report. Non-diamond minerals, led by uranium and gold, are experiencing rising tax revenues.

In the past financial year, revenue from uranium and gold nearly doubled initial estimates, reaching N$2.87 billion, with a projection for further increase. Gold mines in Namibia benefited from surging bullion prices, while uranium production rose significantly, reinforcing Namibia's position as a top global uranium producer.

(With inputs from agencies.)