MME Annual Report by Andreas Elifas

MINISTRY OF MINES & ENERGY

ANNUAL REPORT 2013/2014

MME Annual Report 2013 - 2014

MISSION: To promote, facilitate, regulate and monitor the responsible development and sustainable utilisation of Namibia’s mineral, geological and energy resources; through competent staff, innovation, research and stakeholder collaboration in a conducive environment for the benefit of all Namibians.

VISION: “To be renowned as a performance driven Ministry that passionately works to achieve all of its strategic goals”

STRATEGIC THEMES • Mineral and Energy Resource Development and Promotion • Sustainable Utilization of the Mineral-, Energy- and Geo-Environment • Operational Efficiency • Socio-Economic Development • Policy and Regulations

MME Annual Report 2013 - 2014

Table of Contents Content Page Statement form the office of the Minister

Executive Summary 7 Management Profiles

GEOLOGY 12 Regional Geology

Geophysics

Economic Geology

Geochemistry and Laboratory

Engineering and Environmental Geology

Geoinformation

ENERGY SUPPLY AND RENEWABLE ENERGIES

Rural Electrification

Solar Revolving Fund

Energy Shops

Renewable Energy and Energy Effician

Transformation of REEEI into Namibia Energy Institute (NEI)

Concentrating Solar Power Technology Transfer Namibia (CSP TT NAM)

Baynes Hydropower

National energy Fund (NEF)

Downstream and upstream

Kudu project

MINING 43 Mineral Rights

Epangelo Mining Company

Uis Tin Mine 44 Small Scale Mining 44 Data Collection/Research

Mineral Production and Exports

Mines Safety and Security

Diamond industry

ADMINISTRATION 53 Financial Management

Asset Management

Building Security

Human Resources Management

Information & Communication Technology

LEGAL FRAMEWORK 56 Notes

MME Annual Report 2013 - 2014

Statement Office of the Minister

Hon. Isak Katali The

mandate

the

Ministry

has been elected as president of the

promote, facilitate, regulate and monitor

Organisation

African

Geological

responsible development and sustainable

Surveys, the highest geological body in

utilisation of Namibia’s mineral, geological

Africa.

and energy resources so that they benefit all Namibians.

Cabinet has approved the Nuclear Fuel Cycle Policy was approved for

During the year under review, the Ministry

implementation. The drafting of the

has been engaging in various activities

subsequent regulatory framework on the

in order to fulfil its mandate The Ministry

control and management of nuclear

hereby present you the report on its

industry will start soon. The Ministry is also

activities for the year ended 31 March

investigating

2014.

generation locally to complement the

possible

nuclear

power

current energy mix. The Geological Survey of Namibia (GSN) continued to collect data for map

The year under review had experienced

generation on the country’s surface, to

a blow on the price of uranium which

be used for applications such as mineral

is still trading low. Only two uranium

exploration, environmental monitoring,

mines are in operation. About 4500t of

agriculture

planning.

Uranium were however produced in 2012

To date, about 20% of the country’s

including 251tU from Areva Resources

surface has been sampled. I am happy

Namibia pilot test study. The construction

to announce that the Director of GSN

of Swakop Uranium’s Husab project

and

land-use

MME Annual Report 2013 - 2014

has commenced in October 2012, with

fatal consequences. Even though it is an

expectations of more uranium for the

improvement compared to five fatalities

country.

recorded in 2012/2013, the Ministry is working hard towards zero fatalities.

Export earnings from minerals generated N$21 billion in 2013, with royalties collected

During the year under review HRT Oil

from the sales of minerals amounting to

and Gas drilling of Wingat well in block

15% higher than the previous reporting

2212A resulted in a technical success

period. A total amount of N$1,150,093,948,

for Namibia, having recovered light oil

was collected on royalties, with over 70%

of 4.20 API. Aptian source rock with a

contributed by the Diamond sector.

total organic content of up to 2% was also discovered. This provides undisputed

Namibia has successfully continued its

evidence that Namibia has an active

membership to the Kimberley Process

petroleum system in the oil generating

Certification Scheme (KPCS) and African

window.

Diamond Producers Association (ADPA). Namibia was therefore, represented at

The National Energy Fund (NEF) still

both the KPCS Intersessional and plenary

subsidises the fuel price in event of huge

meetings in South Africa, as well as ADPAâ&#x20AC;&#x2122;s

under-recoveries to help keep the price

workshop on Artisanal Mining in Cote deâ&#x20AC;&#x2122;

stable. A total amount of N$193.7 million

Ivoire.

was paid for the slate under-recovery.

Furthermore, control, monitoring

and promotion activities of the Namibian Diamond Industry have been on track

The

Ministry

despite a moratorium on the issuance

electrification projects and 46 localities

of the dealers and cutting licenses still in

benefited from the annual grid rural

place.

electrification institutions

continued

project. were

with

Four

electrified

rural

public with

The Government Negotiation Team was

containerised solar systems in the Kunene

constituted in 2013 to take care of the

Region.

negotiations between De Beers and the Goverment on the Diamonds Sales

I thank all stakeholders and the committed

Agreement.

staff members of the Ministry of Mines and Energy for their loyalty and dedication.

The Ministry regrets to announce that during the period under review three

It is my pleasure to present the 2013/14

serious accidents were recorded with

Annual Report.

HON. ISAK KATALI, MP MINISTER

MME Annual Report 2013 - 2014

Executive Summary

Kahijoro S-M. Kahuure The Ministry of Mines and Energy aims

data and maps will be useful for a wide

to be renowned as a performance

variety of applications including mineral

driven Ministry that passionately works to

exploration, environmental monitoring,

achieve all of its strategic objectives. The

agriculture and land-use planning.

Office of the Permanent Secretary assists the Minister in directing and monitoring

The

renewable

Energy

and

Energy

the activities of the Ministry and the seven

Efficient Institute (REEEI) managed the

directorates within its mandate. The office

collection of wind energy data at 11

of the Permanent Secretary is central

sites south and west of Namibia with the

as it also coordinates matters relating to

aim of developing a wind energy atlas

mining and energy in Namibia.

for Namibia. A laser based wind energy resource assessment equipment (LIDAR)

Continual efforts from the Geological

was deployed at Amperbo in January

Survey of Namibia provided up to date

2014, and data is being downloaded

information. About 20% of the countryâ&#x20AC;&#x2122;s

daily since then.

surface has been sampled at a sampling density of 1 sample site per 10 km2. Analysis

Rural electrification still remained an

of the collected samples is expected

important project to the Ministry. Fourty

six

generate

geochemical

baseline

localities

were

electrified

during

data for a wide range of chemical

the year under review, under on-grid

elements

electrification.

baseline

and

produce

concentration

biochemical maps.

This

MME Annual Report 2013 - 2014

Mining remains the biggest contributor to

The

our country’s GDP, with export earnings

Namibia’s full compliance to the KPCS’s

from minerals generating N$21 billion

minimum requirements.

in 2013, with diamonds as a biggest

mentioning that a total number of 219

contributor.

industry

and 55,448 export/import and restricted

continued on creating employment for

area permits were issued respectively

Namibians, with an average number of

during the period under review.

employees increased by 7852 partially as

indicated an increase by 45% compared

a result of new mining licenses and claims

to the previous review period. There were

approved during 2013.

however no Diamond Act licenses issued

Furthermore

the

objective;

remains,

ensure

It is also worth

That

due to the moratorium on the issuance of Manganese

production

recorded

notable decline of 40%, gold bullion

especially, dealers and cutting licenses during the period under review.

decreased slightly by 16% while the Zinc concentrates production improved by

The

Diamond

Commissioner

17% from 94,421 tons in 2012 to 113,778

progressively

tons in 2013. Despite the challenges

Negotiation Team on the Sales Agreement

faced, generally, during 2013/2014 the

between De Beers and the Government

industry focused on introducing costs

since the beginning of 2013 with plans to

controlling measures to retain financial

conclude such negotiations by the end

positions and introduction of technologies

of 2014.

led

the

has

Government

aimed at improving production efficiency, in order to minimize capital expenditure.

In conclusion, the Ministry managed to

Namibia also made a break through with

execute 99% of its operational budget

salt export markets in Europe.

and 97% of its developmental budget, which is a positive step towards budget

During the year under review, Namibia was

represented

the

utilisation.

Kimberley

Process Certification Scheme’s (KPCS)

May

present

you,

our

esteemed

intercessional and plenary meetings held

stakeholders, with the Ministry’s Annual

in Johannesburg. In addition, records

Report for 2013/14.

indicated that there was an Increase by 25% in the total number of KPCs issued compared to the previous review period. To that effect, 135 KPCs were issued for exports of rough diamonds respectively.

KAHIJORO S-M. KAHUURE PERMANENT SECRETARY

MME Annual Report 2013 - 2014

MANAGEMENT Profile

MME Annual Report 2013 - 2014

MANAGEMENT

PROFILES

Diamond Commissioner: Mr Kennedy Hamutenya

Permanent Secretary Mr Kahijoro Kahuure

Director of Geological Survey: Dr Gabi Schneider

MME Annual Report 2013 - 2014

Director of Energy Mrs Selma-Penna Utonih (Retired)

Mining Commissioner Mr Erasmus Shivolo

Hon Deputy Minister: Late Willem Isaak

Hon. Minister Isak Katali

Director of Admin and Finance Mr John Titus

Petroleum Commissioner Mr Immanuel Mulunga

MME Annual Report 2013 - 2014

Geology

Regional Geology The aims and objectives of the mapping

Five new and detailed 1: 50 000-scale

project were to improve the quality and

geological map sheets were compiled

availability of geological maps and

in cooperation with the Council for

research information that will benefit

Geosciences of South Africa through the

mineral exploration companies, land use

Regional Mapping Project during the

planners and research institutions and

year under review.

professionals at large. The five map sheets are located in the Furthermore,

the

project

provides

Warmbad

District,

southern

//Karas

an integrated training and capacity

Region, and consist of map sheets 2818

building in modern geological mapping

DA, 2818 DB, 2818 CC, 2818 CD, 2818 DC

and research techniques to Geological

2818 DD, 2819 CC, and 2818 CD.

Survey of Namibia staff.

Part of 2818 CD-NE, Old Map (L) Part of 2818 CD-NE, improved detailed map (R)

MME Annual Report 2013 - 2014

Mapping project team and the five detailed geological map displayed on the background (L) Field inspection of outcrop (R)

The upcating of existing digital data

geological history. During the period

and 1: 250 000-scale geological maps

under review, explanations based on

including newly published information

the “Geology of Namibia” (2008) and

was carried out. Areas such as 1714

other references were compiled for

Oshakati, 1912 Sesfontein, 2218 Gobabis,

areas 1714 Oshakati, 1912 Sesfontein,

2318 Leonardville, 2418 Aranos, 2516

2218 Gobabis, 2318 Leonardville, 2418

Lüderitz, 2518 Koes, 2716 Ai-Ais and 2718

Aranos, 2516 Lüderitz, 2518 Koes, 2716 Ai-

Grünau were updated.

Ais, 2718 Grünau and 2816 Oranjemund. Explanations of area 2818 Warmbad were

Map

sheet

compiled as familiarization with the status

and

quo of geological knowledge of the

intrusive units within an area, including an

area, but will have to be amended after

overview of known mineral occurrences,

the revision mapping, which is currently

simplified stratigraphic tables and a brief

in progress.

summary

explanations the

provide

supra-crustal

Revised map 1913 Hoanib (Area 1912-Sesfonteint)

MME Annual Report 2013 - 2014

Availability of 250 k map sheet explanations Services offered by the Regional Mapping

scientists from 66 countries participated

include the preparation of standard 1 :

in IGARSS 2013, with the thematic focus

250 000 and 1 : 100 000 geological maps

on “Building a Sustainable Earth through

(colour plots), customized geological

Remote Sensing”.

maps

for

exploration,

mineral

and

digital

groundwater data

(ESRI

The Ministry participated in the Annual

shapefile format). For more information

Japan Oil, Gas and Metals National

and prices, please consult the publication

Corporation (JOGMEC) which sponsored

list accessible on the website of the

the

Remote

Geological Survey of Namibia

the

Competition

(http://www.mme.gov.na/gsn).

the

Geological

Sensing

Seminar

that

was

Survey

held

and at

Botswana

in Lobatse, Botswana and JOCMEC A

presentation

“Regolith

Remote Sensing Center in Gaborone,

Characterisation using Aster Data in the

Botswana respectively. The completion

Central Namib, Namibia” was given at

was attended by nine SADC member

the IEEE International Geoscience and

countries, whereby Namibia took the first

Remote

prize.

Sensing

Symposium

(IGARSS

2013) in Melbourne, Australia. Over 1,360

MME Annual Report 2013 - 2014

Posters prepared included “Stratigraphy of Namibia” compiled after the publication “Geology of Namibia” (2008) and the life and work of Prof. Henno Martin, the latter intended for display at the Henno Martin Memorial Site in the Naukluft Mountains. Geological mapping is done in the Workshop at JOGMEC Remote Sensing Centre November 2013 with the first prize

field, and therefore requires travelling and extended periods of time in the field. Limited funds dedicated to the Geological Survey of Namibia placed

Geophysics In

September

2013,

severe constraints on the ability to map the

Namibia

the vast Namibian country.

SuperGrid Series Project (NSGS) started in the interpretation laboratory. The project continues during 2014 to generate new geophysical products. The

//Karas

Interpretation

Project

has reached its final stage and the interpretation of geophysical data sets of the Hardap region has commenced. To ease access to geophysical products on a global platform, the Jetstream data delivery system is still undergoing tests and review to be tailored to the requirements of the Geological Survey. A major obstacle to the delivery of these large data sets is fast and reliable bandwidth. The web-based data delivery system will be promoted as the “Namibian Geophysical Data Delivery System” or NGDDS as acronym.

MME Annual Report 2013 - 2014

Field inspection of rocks and the Namibian team at the JOGMEC/SADC Remote Sensing

Jetstream system for online geophysical data delivery

The Katima Mulilo Seismological station has

been

completed,

bringing

the

number of seismic stations across Namibia to a total of 10 stations.

Seismic station and vault at Katima Mulilo The IS35 station in Tsumeb has reached its 10-year service life and has been upgraded

with

new

Infrasound

measuring equipment. Furthermore, Namibia continues to provide valuable

Seismic station and vault at Katima Mulilo

data to the CTBTO.

MME Annual Report 2013 - 2014

Economic Geology The Geological Survey of Namibia’s Earth

Population of EDN continued with ~450

Science Information system “Earth Data

log sheets from archival water boreholes,

Namibia” (EDN) further expanded in

which were scanned and uploaded into

2013 with new modules and additional

the database to be attached to point

functionality.

locations.

The new modules are designed to capture

About 80 000 geochemical samples were

and store field data, including structural

analysed for base, rare and precious

measurements, lithological observations,

metals from various parts of the country

sketches and photographs (Field Work

(i.e. Matchless Belt, Rehoboth, Walvis

Module), as well as geochronological

Bay, Omaruru, Otjiwarongo, Okahandja,

information (Geochronology Module).

Oranjemund,

While the former was implemented in

Tsumeb and Windhoek areas).

November 2013, the latter will be finalised in early 2014.

EDN web application: exploration reports can be queried by a variety of search criteria such as mineral commodity, exploration license and author.

MME Annual Report 2013 - 2014

Swartbooisdrift,

Opuwo,

In 2013 about 3235 people visited the web

The research on the occurrence of

component of EDN which is accessible

tungsten in Namibia suggests that there

through the Ministry and the Geological

are about 101 deposits and 31 are

Survey of Namibiaâ&#x20AC;&#x2122;s websites. Although

covered in this project.

users are encouraged to give comments for the improvement of this service, no

The

two

types

mineralisation

comments have as yet been received.

associated with tungsten are wolframite and scheelite. Most of the tungsten

Research on the occurrence of tungsten

mineralisation is confined to the central

in Namibia is ongoing with the purpose of

part of the country, but minor occurrences

promoting the areas of mineral potential

occur in the south, along the Namibia-

in Namibia.

South Africa border.

MME Annual Report 2013 - 2014

At the Cuban Earth Science Convention

Services rendered to clients also included

in April 2013, and in collaboration with

provision of mineral deposits information;

NAMCOR, a series of posters on the

cadastral data and general advice on

Namibian geology and mineral resources

mineral prospects of Namibia. Sometimes

as well as a research project titled:

clients come to inform the department

â&#x20AC;&#x153;Application of remote sensing and

and report on the progress of their

magnetic techniques on the Otjihase

projects.

Mine in the Matchless Amphibolite Belt, Central Namibiaâ&#x20AC;&#x153; were presented.

MME Annual Report 2013 - 2014

Geochemistry and Laboratory Sampling

000 scale) map sheet by the local company

Program (RGSP) was initiated in the year

Ultimate Geological and Environmental

2000, with the aim of collecting soil and

Services (UGES).

The

Regional

Geochemical

stream sediment samples from selected A total number of 1800 samples sites

sites across the entire country.

were planned for the survey, but since To date, about 20% of the countryâ&#x20AC;&#x2122;s surface

the sampling team faced challenges in

has been sampled at a sampling density

accessing some of the planned sampling

of 1 sample site per 10 km2. Analysis of the

sites, only 90% of the survey area was

collected samples is expected to generate

covered.

geochemical baseline data for a wide range of chemical elements and produce

Problems

biochemical baseline concentration maps.

survey include refusal of access to some

The data and maps will be useful for a wide

commercial farms by farm owners, close

variety of applications including mineral

encounters with wild animals within the

exploration,

Etosha National Park, and inaccessibility

environmental

monitoring,

agriculture and land-use planning.

encountered

during

the

of some sampling sites in Etosha with both vehicles and on foot. The Tsumeb map

During the period under review, sampling

sheet is the eighth map sheet to be worked

was carried out on the Tsumeb 1916 (1:250,

on since 2000.

MME Annual Report 2013 - 2014

Determining the depth of a soil sampling hole during monitoring of the Tsumeb sampling survey.

Despite the fact that access must be

released. In addition, the SEMP is an over-

given by law, some farmers still refuse

arching framework addressing cumulative

access, and the process could not be

impacts

completed. In addition, legal steps will be

developments through monitoring and

time consuming.

management. The SEMP arises from the

existing

and

potential

Strategic Environmental Assessment (SEA) There

has

been

also

challenges

for the uranium province, an initiative that

respect of delays in the repairs of some

provided vision and generates a culture

of the analytical equipment due to

of collaboration amongst the mining

unavailability of qualified local service

industry, government, and the public.

technicians and lack of funds. The 2012 SEMP report was compiled in

Engineering and Environmental Geology

the course of 2013. During the reporting period, the uranium mining sector most closely resembled Scenario 1 (below expectations) as defined in the SEA. Rio Tinto Rรถssing and Langer Heinrich are

The

second

Strategic

Environmental

the only two uranium mines in operation.

Management Plan (SEMP) report for

About 4500t of Uranium were produced

the Namibian Uranium province was

in 2012 including 251tU from Areva

MME Annual Report 2013 - 2014

Resources Namibia pilot test study. The

unfavourable uranium prices, mining has

construction of Swakop Uraniumâ&#x20AC;&#x2122;s Husab

not commenced. A mining licence was

project has commenced in October 2012.

issued to Zonghe Resources in November

Environmental approval for Bannermann

2012.

resources Namibia was submitted in 2012. Like Reptile Uranium Namibia,

The performance of the SEMP indicators

Bannermann waits for a mining licence.

during 2011 and 2012 are summarised as

Amongst to probable emerging mines is

follows:

Valencia. However with its low grade and

Status:

Not met

In Progress

Met

Exceeded

No Data

Not Applicable

2012

10 (8%)

34 (27%)

64 (51%)

1 (1%)

14 (11%)

2 (2%)

2011

14 (11%)

41 (33%)

64 (51%)

1 (1%)

Not

applicable in

applicable

2011

in 2011

MME Annual Report 2013 - 2014

The Geological Survey of Namibia has given

key

recommendations

the

• The an

Town

Council

approach

that

should

take

encourages

Tsumeb Town Council and stakeholders,

remediation of land and other ways

regarding soil pollution legacy which

of reducing contamination hazards

include:

to people and other receptors where possible, rather than locking it off as

• Contamination maps produced can

unusable.

be used in guiding the Town Council in

• Based on the contamination trend in

land use planning (making informed

Tsumeb and the surrounding areas,

decision regarding land use).

the survey recommends land on the

• Namibian

Soil

Guideline

Values

southern and eastern side of the town

suiting our environment need to be

to be used for residential purpose as it

developed

is least contaminated, and therefore

• Further studies on contamination mobility

and

bioavailability

poses less risk to human beings.

are

required.

Arsenic contamination in the area of Tsumeb

MME Annual Report 2013 - 2014

The exercise also provided training to the students of the Polytechnic on soil sampling and analysis, as well as the common environmental problems associated with mining activities in Namibia. In total, 163 samples were collected with the help of the students. Preliminary results Pb distribution in the area of the Berg Aukas abandoned mine

show a higher concentration around the tailings dam, slags dam, and the old mine area.

In May 2013, the Ministry together with the Polytechâ&#x20AC;&#x2122;s Department of Mining and Metallurgical Engineering undertook a soil contamination mapping survey at Berg Aukas. The exercise was a follow-up on the findings for the 2008 environmental monitoring, aimed at filling-in of data gaps in un-sampled areas, as well as increasing data population in areas that were previously sampled. Elements of

In June 2013, the Ministry also undertook a field assessment survey to the central Namib

area,

with

the

objective

assessing the types of shut down and abandoned mines in the Erongo Region in order to determine which of these are Mining Environmental Liabilities (MELs); and further classify their risk level for future action and prioritising.

concern at Berg Aukas include Arsenic (As), Copper (Cu), Lead (Pb), Zinc (Zn), Vanadium (V) and Molybdenum (Mo).

GSN staff with Polytechnic staff and students

MME Annual Report 2013 - 2014

Using the Abandoned Mine Sites Risk

3. Enable other sites not classified as

Manual, a systematic procedure for

MELs to be organised into lower risk

identifying shut down or abandoned mine

categories, thereby allowing their

sites (SD/AMS) was followed in order to:

regular re-assessment in future based on relative priority. Twelve SD/AMS

1. Determine which SD/AMS pose a significant

risk

human

and/or

environmental health and safety;

sites where visited of which eight were assessed, two are still active, and the other two are just historically known deposits and have never

2. Enable current MELs to be organised

been mined.

according to their risk level, which in turn will support decision-making on remediation by the authorities legally responsible for this task; and

Abandoned Khan Mine

MME Annual Report 2013 - 2014

The

Ministry

attended

Exploration

seminar

which is also impacted by limited funds,

Environment

face difficulties in implementing the

Conservation on Mine Sites held in Cape

whole programme without assistance.

Town South Africa, organized by the

In addition, the legacy of abandoned

Ministry of Economy, Trade and Industry

mines in Namibia is great, and requires an

of Japan (Japan Oil, Gas and Metals

enormous effort of risk assessment.

and

National Cooperation). The overall objective of the Seminar was to exchange experiences in ongoing environmental conversation efforts and mining developments in various Africa countries.

Two

presentations

titled:

“Current Situation of Mining Development, Namibia” and “Current Situation of Mining Developing, Namibia” were given. The monitoring activities under the SEMP project are huge, and with limited staff,

Engineering and Environmental geology staff attending the JOGMEC workshop in Cape Town

MME Annual Report 2013 - 2014

Pupils from Orban Primary School admiring the sea spider

Children from Delta Primary School viewing the round diamond display

Windhoek Christian Academy pupils posing withGibeon meteorites in our museum

The first Southern African Otozoum quadrupedal footprints reported

Geoinformation Museum

treasure hunt was organized and a DVD on the iron smelting tradition of the

The National Earth Science Museum

OvaKwanyama was shown to visitors.

continued to remain an active member of the Museums’ Association of Namibia,

Nine hundred and eighty eight (988)

the Palaeontological Society of Southern

visitors came to the National Earth

Africa and the Southern African Society

Science Museum during 2013/14. Most of

for Quaternary Research.

these included school groups, university students, visiting scientists and tourists.

The museum had the pleasure of hosting

an open day to celebrate National

The National Earth Science Museum was

Heritage

theme:

featured in various articles in the PalNews,

Namibia’s Knowledge Bank. As part of the

a newsletter for the palaeontological

celebrations, tours were given to school

community

groups in the museum, an educational

Association newsletter.

Week

under

the

MME Annual Report 2013 - 2014

and

the

Museum’s

Disaster Planning and Management for Namibian Museums workshop participants receiving first aid kits.

The

French-Namibian

Expedition

visited

Palaeontology

the

Sperrgebiet,

previously unreported travertine deposits south of Opuwo and east of Sesfontein.

resulting in the discovery of a new fossil site with thousands of Eocene micro-mammal

A workshop on “Disaster Planning and

bones. Research collaboration was done

Management for Namibian Museums”

with scientists from Italy on dinosaur

organized by the Museum’s Association of

tracks, with the first definite identification

Namibia (MAN) as well as a workshop on

of the quadrupedal Otozoum footprints in

“Quaternary Climate and Vegetation of

Southern Africa.

Southern Africa, East-West-North-South” was attended.

The discovery of fossilized freshwater gastropods, plants and animal tracks

Various donations were received for

next to the Okavango River proved to be

the museum exhibition, including some

significant for this area, as no fossils had

minerals from the Rosh Pinah Zinc Mine,

been reported here before.

one of the first GPS instruments developed, a portable gamma ray scintillometer, and

The

French-Namibian

Palaeontology

a trace fossil from Farm Okatore.

Expedition surveyed the Etosha National Park and Kunene region for new fossils. The team excavated over 400 fossils in Etosha and discovered fossils in several

MME Annual Report 2013 - 2014

Library The National Earth Science and Energy

Namibiaâ&#x20AC;&#x2122;s

Information Centre has been striving to

palaeontological heritage is vast, and

promote adequate use of comprehensive,

cannot be managed by one person

accurate and timely scientific information

alone; however, the Geological Survey

about geology, mining and energy to its

of Namibia has only one funded post

diverse clientâ&#x20AC;&#x2122;s- spectrum.

for a palaeontologist, who is also

geological

and

responsible for the entire museum. The

information

Centre

continues

provide library users with relevant available

There are not enough funds for curation

information and information resources

storage and field visits. The library is one

according to their specified needs; i.e.

of the largest technical libraries in the

Exploration Licenses (EPLs) reports and

country; however there are no Senior

historical data, information on electronic

Librarians availed, which leaves the

format and hard copies, books, journals,

Ministry without adequate capacity to

reprint articles etc. were available for

manage such a sophisticated library.

purchase.

MME Annual Report 2013 - 2014

ENERGY SUPPLY AND RENEWABLE ENERGIES Rural Electrification During the year under review, 46 localities

experienced contracting companies to

have benefited from the annual grid rural

be approached to provide quotations

electrification project (such as clinics,

and thereby fast tracking of the project

police offices, agricultural development

implementation.

centers and churches), including the installation of transformers at the formal

It takes contractors two to three months

and informal business centers in rural

to receive equipment, and long waiting

areas in all 13 regions of the country.

periods are therefore experienced.

An amount of N$45 million was budgeted

Furthermore,

for the annual rural electrification project

November

while N$40 million was also budgeted

competition of projects on time in flood

for the upgrading of the sub-station and

prone areas, where contractors may not

REDs implemented the project on behalf

have access to sites, and most of power

of the Ministry. During the financial year

lines pass through Oshanas.

the to

rainy April

season

from

hampers

the

2013/2014 four public institutions (three primary schools and one clinic) were

Solar Revolving Fund

electrified with containerized solar system in Kunene Region.

The Solar Revolving Fund (SRF) finances three types of technologies such as; Solar

Namibia has a shortage of qualified and

Home System (SHS), Photovoltaic Pumps

adequately

(PVP) and Solar Water Heaters (SWH).

experienced

contractors

at present, and this makes it difficult to attract regions,

experienced such

contractors

Kavango,

into

A number of systems were financed in 13

//Karas,

regions during the financial year 2013/14

Hardap and Zambezi. Tender required

exemption to

allow

as per the diagrams below. are

therefore

reputable

and

MME Annual Report 2013 - 2014

Figure: 1.....

Figure: 2.....

Subsequent

the

financing

and

providing of credit facility to individuals in need at subsidised interest rate of 5%,

Month

Loan Recovery Amount

SRF is mandated to recover all the funds April 13

379 424.29

80%

May 13

390 703.40

79%

June 13

421 035.70

81%

July 13

435 822.21

85%

August 13

440 442.81

83%

September 13

478 141.62

86%

October 13

469 057.24

80%

November 13

495 232.81

84%

December 13

529 411.81

85%

technical advice for increased quality of

January 14

535 450.31

83%

February 14

552 766.31

80%

service delivery and trained more than 50

March 14

604 116.31

87%

back. Illustrated in a table below is the loan recovery for 2013/14 financial year. Renewable Energy and Energy Efficient Institute (REEEI) participated by providing

technicians installing solar home systems in Namibia.

Recovery Rate %

MME Annual Report 2013 - 2014

Table: 1.....

Energy Shops

Understanding was signed this year (2014) with Masdar Institute paving the way for

Thirteen Energy Shops were established in 12 regions of the country in order to bring electricity closer to the population. The Embassy of Finland was a project partner and co-financier in the establishment of

Polytechnic of Namibia to receive laser based wind energy resource assessment equipment (LIDAR) while validating the data collected from non-conventional masts.

The

LIDAR

was

received

November 2013 and was deployed at

the energy shops.

Amperbo in January 2014, where data is An assessment of the project was initiated

being downloaded daily.

at the end of 2013, and completed in February 2014. The assessment which wi

The Ministry of Mines and Energy has established the Project Management

ll guide the way forward while launching the second phase of the energy shop project in 2014, highlighted the challenges met by the energy shops thus far. The next planned shops will be in Rehoboth and Gam settlement. Nine out of the 13 shops were operating acceptably, while other four were either not stocking at all, or

Unit (PMU) of the Renewable Energy Procurement Process Project of which REEEI

the

Chair.

PMU

provides

technical advice to the Project whose Steering Committee is comprised of Ministry of Mines, the Electricity Control Board (ECB) and NamPower.

Current

work is on developing a request-forproposal (RFP) for the procurement of a

completely closed.

30mw solar/photovoltaic power plant

Renewable Energy and Energy Efficient Institute (REEEI) REEEI managed the collection of wind energy data at 11 sites south and west of Namibia with the aim of developing a wind energy atlas for Namibia. Partners to this project include REEEI, NamPower, MTC, Masdar Institute (UAE), and International Renewable

Energy

Agency

(IRENA).

Lecturers from School of Engineering at the Polytechnic of Namibia have participated actively in this project since its inception in 2011. A Memorandum of

from an Independent Power Producer (IPP) through international competitive bidding. Fifty companies responded to a call for proposals, and nine were prequalified. All of them however indicated their need of an Implementation Agreement where

Government

guarantee

NamPowerâ&#x20AC;&#x2122;s

expected

performance

under a Power Purchase Agreement, and to compensate the Independent Power Producer (IPP) in the event of certain political force majeure due to government action. An Implementation Agreement was drafted by the PMU

MME Annual Report 2013 - 2014

and went through various debates as

More than 60 practitioners have been

approved by the PSC. The draft IA must

trained by the Soltrain Project in Namibia

still be externally reviewed and submitted

during the reporting year. REEEI has been

to Cabinet for deliberations.

confirmed as a Centre of Excellence in solar thermal technologies in Namibia,

The

Solar

and

working together with satellite centers

(SOLTRAIN)

such as Vocational Training Centres

training course aims to increase the

(VTC’s) throughout the country, as well as

knowledge on solar thermal systems

industry and other academic institutions.

and applications of “professionals”, who

Six VTC’s will each receive demonstration

are already working in the field of solar

systems from funds sourced by REEEI, and

thermal, enabling trainees to design, build

provided by the Soltrain project, OFID,

and install solar thermal systems. SOLTRAIN

MME, and EIF.

Demonstration

Thermal

Training

Initiative

II will build up on a previous project which ran from 2009-2012. The project is

Under the Namibia Energy Efficiency

supported by the Austrian Development

Programme

Agency (ADA) and AEE-INTEC (Institute for

Associated Working Group for the Green

Sustainable Technologies from Austria).

Building Council of Namibia (GBCNA) was

Buildings

(NEEP),

the

established in February 2012 to oversee Project Partners are the Sustainable Energy

the establishment of GBCNA.

Society of Southern Africa (SESSA), the Centre for Renewable and Sustainable

The NEEP project participated in Annual

Energy Studies (CRSES), the Renewable

Trade

Energy and Energy Efficiency Institute

Ongwediva Annual Trade Fair, and the

(REEEI), Eduardo Mondlane University

Windhoek Agricultural Show as part of its

(UEM), and Domestic Solar Heating (DSH)

awareness on energy efficiency raising

of Zimbabwe. Supplementary funding

efforts.

Fairs

and

Expos,

namely

the

for the Soltrain project was secured from the OPEC Funding for International

The NEEP project established the Green

Development

Building Council of Namibia (GBCNA),

(OFID),

under

the

leadership of AEE INTEC.

with REEEI as the Secretariat. The GBCNA, now registered as a Trust with the High

A Solar Thermal Technology Platform

Court of Namibia, will run the Green

(STTP) was founded to map the future

Building Rating System.

for solar thermal technology in Namibia. A vision of providing hot water for all

An Office Rating Tool adopted from

Namibians through solar water heating

the GBC of South Africa (GBCSA), was

by 2030 has been mooted, and is being

contextualised to Namibia. The GBCNA

developed.

MME Annual Report 2013 - 2014

hosted a three day training workshop in July 2013 aimed at creating local capacity of professionals able to assess green buildings, and commemorated the green building week through a workshop organised at the HRDC. The NEEP Project came to an end in March 2014, and all initiated activities will now continue under the NEI and GBCNA.

Concentrating Solar Power Technology Transfer Namibia (CSP TT NAM) The CSP TT NAM project is a three year (2014/15 â&#x20AC;&#x201C; 2016/17) project that was implemented by the Ministry of Mines and Energy in collaboration with the

Transformation of REEEI into Namibia Energy Institute (NEI)

Renewable Energy and Energy Efficiency Institute (REEEI) at the Polytechnic of Namibia and NamPower. The project is funded by the Global Environment Fund (GEF). The approved funding amount

In December 2012, the Cabinet of the Government of the Republic of Namibia (GRN)

authorised

the

transformation

of the Renewable Energy and Energy Efficiency

Institute

(REEEI)

into

support

the

development

three years 2014-2017) is $1 718 000.00, which is co-financed to the total value of the project of $2 588 000.00.

the

Namibia Energy Institute (NEI), in order to

from the GEF (which is over the period of

and

dissemination of knowledge, skills and good practices towards a safer, more secure and sustainable energy system in Namibia (Cabinet approval, DECISION NO: 22ND/12.12.12/009).

The

project

came

into

effect

February 2014. It aims to increase the share of renewable energies in the Namibian energy mix by developing the necessary technological framework and conditions for the successful transfer and deployment of CSP technology for ongrid power generation, thereby reducing

NEIâ&#x20AC;&#x2122;s

new

mandate

includes

the

greenhouse gas emissions.

establishment of four centers, viz: Centre for

Renewable

Energy

and

Energy

Efficiency (CREEE); Centre for Oil and Gas (COG); Centre for Electricity Supply (CES); and Centre for Nuclear Sciences (CNS). A five year strategic action plan for the NEI was finalised, and plans are at an advanced stage to launch the Namibia Energy Institute in May 2014.

The CSP TT NAM Project manager was hired in February, and the Inception Meeting was held at the end of March 2014. A major component of the project will be implemented by NamPower, through a Memorandum of Understanding to be signed between MME and NamPower. This MOU has already been drafted and is expected to be concluded at the Inception Meeting.

MME Annual Report 2013 - 2014

Baynes Hydropower

A total amount of N$104 million was paid in road delivery subsidies for rural and

The Techno-Economic Feasibility Study and the Environment Impact Assessment

far outlying areas during the 2013/2014 financial year.

for Baynes Hydropower Project were completed. presented

The to

Draft

the

Studies

were

Permanent

Joint

Technical Committee (PJTC) in 2012 and the final reports will be submitted soon in 2014.

NEF will continue to subsidise energy prices and provide financial support to energy projects for the benefit of all Namibian consumers. In addition, NEF will supplement energy budget to develop energy infrastructures, and ensure that

National energy Fund (NEF) To ensure reliable, affordable and cost reflective energy, NEF has paid a total amount of 193 million for the slate underrecovery in 2013/2014.

the national energy mix reacts positively to the global energy turmoil. During the period under review, the Minister approved the imposition of a levy on electricity by NamPower to be adjusted from 1.02 cent per kWh to 1.08 kWh, effective 01 July 2014.

MME Annual Report 2013 - 2014

Downstream and upstream

The annual retail margin survey for 2012/2013

was

conducted

and

4c/l adjustment was implemented to

During the period under review, 24 wholesale licenses, 50 retail licenses, and 42 consumer installation certificates were

ensure that the dealer margins remain sustainable and retailers are making profit.

issued. There is a significant growth in the number of licenses issued annually and this signals an increase in demand for petroleum products in the country.

The interest in Namibia’s exploration potential remained high even with the dry wells that were drilled in 2012 and 2013 with local and international players

Downstream as well as upstream safety inspections were carried out regularly

negotiating for exploration licenses with Government.

during the year under review, and have

contributed

improved

management of both upstream and downstream activities in the country. There were no serious or fatal accidents reported. Lack of funds does not however allow the entire country’s facilities to be inspected.

This has resulted in the Ministry issuing a total of seven new exploration licenses in the past 12 months. The

country’s

petroleum

database

continues to improve every year. A total of 15 682 line kms of 2D and 24 313 km² 3D seismic data was acquired during the period under review. PGS completed the

The Ministry of Mines and Energy is still waiting on Namcor to indicate their readiness to take up the 50% mandate to import the country’s petroleum products as it was revoked by Cabinet. Oil industry still imports 100% of Namibia’s petroleum

processing of the multiclient deep water 2D seismic dataset which was acquired in 2012 and the interpretation process is ongoing. This data is available from the Namibian national data repository for sale.

products which goes against the policy objective of diversification of supply of products. There are capacity constraints in Namcor to achieve this but they seem to be making some progress on reclaiming the 50% importation mandate.

MME Annual Report 2013 - 2014

An agreement for a multiclient gravity,

areas. During April 2013, the company

magnetic and oil seep data survey

drilled the Wingat well in block 2212A. The

was entered into between the Ministry,

result of this well was a technical success

Namcor

for Namibia, having recovered light oil

acquire the above mentioned data

of 4.20 API coupled with discovering an

within the Walvis Basin.

excellent Aptian source rock with a total

and

Acorn

Geophysics

organic content of up to 2%. The contract between GXT/ION and Namcor was signed to shoot the long

The second well called Murombe was

span seismic lines over the entire offshore

drilled in July within block 2112A and also

Namibia and to provide a regional

encountered the same source rock with

perspective geological and geophysical

a Hydrogen Index of 400-500.

perspective. This survey was supposed to take place earlier and had to be

The Moosehead well was drilled in

postponed because of a lack of pre-

block 2713A and encountered a good

funding.

carbonate

reservoir.

This

provides

undisputed evidence that Namibia has HRT

Oil

and

Gas

embarked

massive drilling campaign, drilling three

an active petroleum system in the oil generating window.

exploration wells in their respective license

Sample of oil that was found in Namibia

MME Annual Report 2013 - 2014

The Rowan Renaissance 7th generation drill ship Major

international

oil

companies

well in block 2011A operated by Repsol

continue entering Namibia for oil and gas

together with its partners Arcadia and

exploration through farm-in deals with

Tower Resources. The drilling is expacted

most of them taking over the operatorship

to start in April 2014.

of licenses previously owned by smaller companies.

Kudu project

The Ministry has approved five new

The Kudu gas to power project, which

licences through farmâ&#x20AC;&#x201C;in during the year

has been on the drawing boards for

inder review namely, Repsol (44%) in block

many years, is now back on track and the

1910A, 1911 &2011A, Shell (90%) in block

final investment decision is expected by

2914B & 2913A, Impact Oil & Gas (80%)

March 2014. All the parties to the project

in block 2913B, Murphy (40%) and OMV

have signed the Project Development

(20%) in blocks 2613; and Tullow (65%) in

Agreement (PDA) and GSA term sheets,

block 2012B, 2112A& 2113B.

which unlocked further funding for the project.

The Rowan Renaissance 7th generation drill ship arrived in Namibia for the upcoming drilling of the Welwitschia-1

MME Annual Report 2013 - 2014

On the upstream side, the JOA has been in place since 20 December 2012, the pipeline survey has commenced and Invitations to Tender for the Front End Engineering and Design (FEED) will come out soon. Namcor is going to start the process of searching for a partner to take up 70% of the 54% it currently holds in the Production License. On

the

downstream

prequalification

for

the

side,

the

Engineering

Procurement and Construction (EPC) Turnkey Tender has been announced by NamPower, and the successful contractor was

selected

2013.

Construction

will commence straight after the final investment decision and the first gas is expected to be delivered in the second half of 2017 ushering Namibia into the league

hydrocarbon

producing

countries. Fuel prices are currently adjusted on a monthly basis. They are influenced by market forces beyond our control, especially

this

time

volatile

international crude oil prices. The Ministry of Mines and Energy continues to keep the fuel price to a minimum without destabilizing the economy, and several adjustments to fuel levies were done. The downstream subscribed to Thomson Reuters to systematise the Basic Fuel Price calculation and have access to live spot prices and news.

MME Annual Report 2013 - 2014

MINING

Mineral Rights

Epangelo Mining Company

During the reporting period 268 EPLs, 161 Mining claims and 506 Non-EPLs were

The mining company has during the

issued.

period under review managed to secure partners to jointly develop the following

Six

exploration

projects,

namely:

Exclusive Prospecting Licences (EPL’s):

Omitiomire (Copper), Gergarub (Zinc),

4880, 4925, 4792, 4793, 4802, 4804, 4882,

Haib (copper), Navachab’s anomaly

5261, 5262, 5263, 5264, 4782, 4816 and

16 (gold), Lodestone (iron) and Former

4950 covering a total area of 92 5748.6

Namib Lead mine (zinc) have become

hectares. The minerals targeted in these

advanced,

under

EPL’s are rare and base metals such as

review. It is anticipated that they are

copper, lead, zinc and iron as well as gold.

likely to become operating mines in the

The company did work on EPL’s 4792,

near future. The Gergarub deposit is

4793, 4802, 4804, 4817, 4818, 4833, 5028

still however being disputed by the two

and 4782 and completed the desktop

companies, and the arbitration is still

studies.

during

the

year

ongoing. In addition, the company also conducted The Ministry initiated a process of revoking

desktop studies that would be serving

dormant

the

as baseline information. This will provide

reporting period and this is aimed at

leverage when negotiating with joint

keeping the Mining Sector on their toes

development partners for stakes.

mining

licenses

during

and reminding them that land locking will not be tolerated.

MME Annual Report 2013 - 2014

Memorandum

was

issues of mutual concern with the intent

to improve on statutory obligations as

develop cooperation in prospecting and

per the Minerals Act, and to strengthen

mining of certain minerals in Namibia

cooperation with the industry.

signed

with

Understanding

Angolaâ&#x20AC;&#x2122;s

Ferrangol

and Angola. Another MOU was signed with the Shandong Provincial Bureau

Safeguards are still being implemented in

of Geology in Mineral Resource of the

line with the provisions of the Safeguards

Peopleâ&#x20AC;&#x2122;s Republic of China to ensure

Agreement.

sustainability in the field of Mining, identify

scrutinizing uranium sales and uranium

opportunities

oxide purchase and sales agreements

for

expanding

bilateral

cooperation and investment flows.

This

done

through

to provide assurance that uranium of Namibian origin is exclusively exported for

EIA and EMP studies were conducted on EPL 4782 and 5028 and to assess the

peaceful applications.

significance of environmental concerns.

Small Scale Mining

Progress was achieved on the revival

The implementation of three small scale

of the Kombat Copper Mine in which

mining capital projects was initiated in

Epangelo has a 10% stake. The Company is

the year under review.

negotiating to acquire significant minority stakes in the Shiyela Iron Ore project

These projects are;

which is close to reaching production.

Setting up of Small Scale Clay brick

Uis Tin Mine

manufacturing plants at Iiheke YaNakale (Omusati Region), Tondoro (Kavango West Region) and Ioma (Zambezi Region).

SMU concluded an Agreement for the revival and development of the Uis Tin

During the period under review, land was

Mine and successfully negotiated N$5

availed in the above mentioned regions.

million signing bonus of which N$1 million

Official allocations of the said projects

will be donated to the community of

to the Ministry of Mines and Energy by

Uis for Food hampers and water point

the Ministry of Works and Transport are in

development at the Tatamutsi settlement.

progress.

Monitoring of Mines and advanced Projects

Workshops for Small Scale Miners were successfully

hosted

Noordoewer,

Karasburg, Keetmanshoop and Khorixas

Several visits to various mining companies

with the assistance of experts from the

and operations were undertaken to

Legal Assistance Centre and the Ministry

collect information, verify and discuss

of Agriculture, Water and Forestry.

MME Annual Report 2013 - 2014

The aim of the workshops was to introduce

During

the

period

legal groups to the participants in order

geochemical sample analyses (XRF and

to decide on suitable and preferred

XRD Analysis) and other support services

legal models. The workshop also aimed

were provided to small scale miners

at introducing drafting of constitutions,

countrywide. Ten small scale miners from

procedures of registration of associations/

the //Karas, Kunene, Erongo, Omusati

co-operatives and to explain mineral

and

rights application procedures.

financial and logistical support to exhibit

Khomas

regions

under

also

review,

received

their mineral products at the Mining Expo A workshop for Small scale Miners in

that was held in Windhoek in May 2013.

the Erongo region (Karibib, Xoboxobos and Uis) was also successfully hosted

A survey, using Ground Penetrating Radar

in collaboration with the Ministry of

(GPR) was conducted in the Karibib and

Environment and Tourism to educate

Usakos areas with the help of the Swedish

small scale miners on the provisions of the

Government organisation (Meeting Points

Environmental Management Act No 7. of

Mining) to locate or identify fractures

2007.

where possible mineralization of semiprecious stones could occur. The project is still ongoing and preliminary results from the survey are encouraging. The Ministry participated in the Arusha International Gem, Jewellery and Minerals Fair (AIGJMF) which was organized by the Ministry of Energy and Minerals of

The late Deputy Minister adressing Small Scale Miners at the workshop in Keetmanshoop

Tanzania and Tanzania Mineral Dealers Association (TAMIDA) in October 2013. In

spite

the

Ministryâ&#x20AC;&#x2122;s

efforts

educate small scale miners, some Small Scale Miners still operate in unsafe and environmentally

unfriendly

manner

causing environmental degradation. Abandonment of mining sites and quarries by mineral rights holders (particularly Some of the participants at the workshop in Noordoewer

small scale miners) without following the provisions of the Act, including rehabilitation, remain a problem.

MME Annual Report 2013 - 2014

Data Collection /Research The Ministry continued to provide reliable and timely statistics on employment, production,

exports,

royalties,

and

exploration expenditure to the National Statistics Agency, Banking Institutions and Setting base lines for GPR

independent researchers. The statistical mining data are essential for

the

compilation

national

accounts, analysis of growth trends and performance of the sector, and formulation of national macroeconomic policies. The Ministry also continued to collaborate with international organizations such as

Reading of the GPR data

the International Lead and Zinc Study Group, and the International Atomic Energy Agency as a national commitment to those UN institutions.

As a result of the current low uranium prices, all new and planned uranium projects have been delayed because the current price of uranium oxide average the cost of production. is

traded

obligations may vary markedly from quarter to quarter. Spot sales are priced at or near published industry spot prices. The spot price has been in a steady decline for several months, and is currently at $28 per pound of U3O8. In addition, spot prices have also been more volatile than long-term prices. Moreover, the

under

long-term

contracts. These contracts have a variety of pricing mechanisms, including fixed prices, base prices adjusted by inflation indices and/or spot price or long-term contract reference prices.

long-term contracts is at the discretion of the customer, so, a companyâ&#x20AC;&#x2122;s delivery

Mineral Production and Exports

Uranium

Time of delivery during a year under

MME Annual Report 2013 - 2014

price began 2013 at $43.75 per pound U3O8 and ended the year, at $34.50 per pound U3O8. The long-term price begun the year at $56.00 per pound U3O8, increased to

$57.00 per pound at the end of April,

quality from its major mining pit and latest

weakened to $55.00 at the end of June

technology has been put in place to test

and, stayed at $50.00 per pound during

further pre concentration.

2013. The decline is partly attributed to world oversupply, lack of buyer interest,

Global Fluorspar demand and prices

delays to restart of Japanese reactors

continues to record a decline and are not

etc.

expected to improve in the short term. This is mainly motivated by the Chinese export

Despite

the

low

uranium

price

the

construction of the Husab project is

of fluorinated product into the European and American markets.

progressing well. The Mine remained on track to resume commercial production.

Manganese

production

recorded

notable decline of 40%, gold bullion During 2013, the rough diamond market

decreased slightly by 16% while Zinc

experienced less volatility than in recent

concentrate production improved by

years. The demand for rough diamonds

17% from 94,421 tons in 2012 to 113,778

remained strong.

tons in 2013.

Over the years, salt was mostly exported

Despite the challenges faced, during

to African markets; however, in 2013 a

2013/2014,

breakthrough into the European market

introducing costs controlling measures

was achieved. Progress is being made

to retain financial positions. Technologies

to expand projects and to increase total

have also be introduced in order to

output to 1million tons per year due to

improve

increased demand.

minimise capital expenditure.

Export earnings from minerals generated

Moreover, the Ministry noted with concern

N$21 billion in 2013. Royalties collected

that foreign nationals were employed at

from the sales of minerals were 15% higher

mines without proper documentation,

than the previous reporting period, and

and the illegal smuggling of mineral

totaled to N$1,150,093,948, with over 70%

products across borders which is a threat

contributed by the Diamond sector.

to safety and the general security of the

the

industry

production

focused

efficiency

and

country. In the same light, staff members The average

number of

employees

increased by 7852 partially as a result of

continued to be vigilant in addressing these matters.

new mining licenses and claims approved during 2013.

Value addition to minerals remains a challenge although there have been

The challenges faced by the mining

engagements with the Ministry of Trade

industry

and Industry to encourage establishment

include

Fluorspar

production

which is currently restrained by poor ore

manufacturing

industries.

Some

MME Annual Report 2013 - 2014

Mineral Rights holders regularly submits

review three serious accidents were

inaccurate and/or incomplete reports

recorded with fatal consequences at

based on provisional data.

Matchless Mine, Marvest Marble Mine and at Langer Heinrich Mine.

The

deduction

non-prescribed

allowable deductions by mining entities

Even

though

improvement

to avoid paying requisite royalties, as well

compared to five fatalities recorded in

as the unreasonably late payments of

2012/2013, the Ministry is working hard

both royalties and penalties have been

towards zero fatalities.

noted with concern. Previously

recurring

mine

accidents

Suspicious discrepancies on volumes and

prompted the Chamber of Mines, in

values of mineral commodities declared

consultation with the Ministry, to engage

on the royalty payment schedule lead

an International Mining Safety Expert to

to under-estimation of royalties. In some

assess the Namibian mining industryÂ´s

cases Transfer Pricing is suspected.

safety standards in 2012.

Inaccessibility of certain mineral rights

The

areas by rights holders due to difficult

recommendations

and uncompromising land owners pose

Shortcomings were shared with the mining

challenges.

industry operators and the general public

expert

has

since for

provided

improvement.

by the Chief Inspector of Mines and his The continuous increase in fuel prices

team. The Ministry of Mines and Energy is

also remains a concern for both small

implementing recommendations where

and larger mining operations, as this

possible.

negatively impact on the output of the operations.

Other challenges include

Furthermore, not all mine accidents were

increasing production costs at major

however caused due to negligence or

mines as well as inadequate provision of

contravention of the law by the Mineral

water and electricity.

Rights Holders. Some are due to unsafe behaviour and negligence by individuals

Mines Safety and Security

on the sight. These are such as for example operating machinery without proper authorisation, failure to follow safe

The

Namibian

mining

industry

has

experienced improvements during the

working procedures, and not anchoring safety gear when working at heights.

period under review In respect of loss

time injuries (LTIs). The Ministry regrets to

All

announce that during the period under

procedurally investigated by the office

MME Annual Report 2013 - 2014

three

fatal

accidents

were

of the Chief Inspector of Mines. Two of

Non-compliance with provisions of the

those investigations were completed and

Minerals (Prospecting and Mining) Act by

findings were forwarded to the office

some exploration and mining companies

of the Prosecutor General for decision

and claim holders continue to be a

making.

challenge. with

stakeholders

There was an increase during the year

better

under

compliance.

review

young

Namibians

However,

engagement

has

understanding

resulted

and

improved

acquiring blasting certificates for both A shortage of certain professionals, in

open cast and underground mines.

particular the absence of a legal expert The candidates are tested and when

in the Ministry of Mines and Energy has

successful, certified by the Chief Inspector

resulted in delays in finalising certain

of Mines as qualified and competent

legal matters, as well as challenges

persons to undertake blasting operations

instituted by parties who felt aggrieved

at exploration and mining sites. This trend

by the MinistryÂ´s sometimes unintentional

is most likely to continue proportionally

actions.

with the increase in the number of Mining and Exploration Licenses.

Year

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2013

43.75

42.00

42.25

40.50

40.40

39.55

35.00

34.00

35.00

34.25

35.90

34.50

Mineral Production and Exports 2013 Commodity Production

Exports Mass

Value (N$)

Diamonds

1,776,290.46 (cts)

1,826,995.18 (cts)

10,041,396,072.85

Fluorspar

65 348 (t)

55 765 (t)

185 305 215

Gold Bullion

1, 968(kg)

1, 949 (kg)

845, 920, 415.00

Granite

49,650(t)

24, 355

49, 592,632.35

Lead Concentrate

21,409(t)

Manganese

133,473(t)

147,300 (t)

78, 898, 517.00

Marble

36,369(t)

27,665(t)

49,939,313.99

Salt

844 628

56 533

27 203 566

Uranium oxide

5,157(st)

12,450,619.34 (lbs)

6,198,430,619.70

Zinc concentrate

113,778(t)

54,975(t)

280,391,971

Zinc Refined

128,291(t)

130,294(t)

2,591,031,081.00

MME Annual Report 2013 - 2014

Diamond industry

A KPCS Plenary Session, Johannesburg, RSA

In ensuring the protection of diamond

technological and skills challenges faced

resources, a total of 219 export/import

by sight holders. Furthermore, two new

and 55 488 restricted area permits were

contractors and sub-contractors were

issued, thus indicating an increase by

also approved by the Minister during the

2% and 45% respectively. In addition 135

period under review.

KPCS certificates were also issued during As a participant of the KPCS, Namibia

the year under review.

attended the intercessional and plenary The import/export reports (KPCS) and

meeting in Johannesburg (RSA), and

sales

and

also visited Singapore and Vietnam to

submitted on a quarterly and annual

review and assess the implementation

basis. No diamond licences were issued

of the KPCS. A 2013 KPCS’s plenary

during the year under review due to the

final communiqué on decisions taken

moratorium on the issuance of Diamond

was shared with management. China

Act which is still in place.

Succeeded RSA in the chairmanship

statistics

were

compiled

role for 2014 and the African Diamond The increasing trend of export permits

Producers Association were accepted

was mainly as a result of economic,

as a full member of the KPCS but as an “Observer”.

MME Annual Report 2013 - 2014

The Ministry in collaboration with the relevant local and regional stakeholders (PRU, Customs and Excise, Ministry of Fisheries, MET etc.) has successfully carried out activities in relation to the control, monitoring, handling and transportation of rough diamonds to the mine sites, vessels and cutting and polishing factories, as

MV Mafuta for Debmarine Mining

well as, diamond valuation procedures. The field operations have continued to be hampered mostly by challenges such as limited and aging fleet, poor road infrastructure, lack of communication networks in remote areas, as well as under-skilled drivers. Diamond valuation counts have also recorded

increase,

despite

A joint patrol Team at the Karas Region

reduction in the number of active cutting and polishing factories due to the global economic slowdown. The Ministry further commits to promote and lobby for sustainable growth, stability and

viability

the

downstream

diamond industry through enforcement of supply of rough diamonds to the factories.

A Difficult (wet and sandy) access road to mining sites

It will further develop and strengthen the local skills base in diamond cutting, polishing, sorting and valuing. To that effect, the Diamond Commissioner is a member and lead negotiator of the Government Negotiation Team (GNT), which was constituted and tasked to review and prepare for the re-negotiations of the Sales Agreement between De Beers and the Government. The negotiations

A joint patrol team in the Kunene Region (MME, MFMR, NAMPOL, MET)

MME Annual Report 2013 - 2014

would only be concluded by the end of

• A local Stakeholders’ Committee

2014 as the project period was extended

Meeting (MFMR, MET, NAMPOL and

twice to allow for a comprehensive and

MME) to plan and discuss joint patrols

thorough deliberation with a view to

and other security related issues.

developing a viable and sustainable downstream industry in Namibia.

Security concerns over diamond resources still exist. That could be attributed to

The following meetings were also held

frequent flights by chartered aircrafts

and attended in order to uphold the

using the Kunene, Moab and Torra

image of the Namibia Diamond Industry

airstrips. Lack of a marine and helicopter

during the year under review:

fleet to conduct unannounced visits to vessels by Diamond Inspectors. Another

• The

African

Diamond

Producers

factor is numerous queries on cross

Association workshop on artisanal and

border illicit diamond transactions by

small scale mining in Abidjan, Ivory

speculative investors frequently handled

Coast; however a Council Meeting

by the Ministry.

could not be held as planned in 2013 due to civil unrest in Guinea and was

Currently, the Ministry does not have

rescheduled to be held between

a committee in place to review and

June/July 2014.

recommend Security Plans submissions for the Minister’s approval in order to improve on efficiency and effectiveness.

MME Annual Report 2013 - 2014

ADMINISTRATION

Financial Management

the 2014/2015 financial year, while Luderitz officeâ&#x20AC;&#x2122;s renovations were completed successfully.

During the 2013/2014 financial year, the Ministry of Mines and Energy managed to execute 99% of its Capital Projects and 96% of the Operational Budget. This has been a milestone for the Ministry,

The

commencement

phase two of the Luderitz office is however under consideration and renovations of the Tsumeb office was completed. In addition, there are minor renovations to be undertaken in due course.

whereby we are striving to accomplish a The construction of the Swakopmund

100% success rate.

office is underway and the project Processes

and

procedures

were

introduced to enhance the financial management. Circulation of expenditure reports are one amongst others of the procedures initiated. This has kept all stakeholders

and

project

managers

informed about the possible areas for overspending or under spending, which

expected

completed

during

2015/2016 financial year. The building will accommodate all directorates of the ministry, thereby simplifying accessibility to other ministries, industries, small miners, oil industry, mines as well as the members of the public in one suitable location in the Erongo Region.

empowers them to better manage their capital spending to either virement or

The Ministry has a total number of 87 vehicles, of which six vehicles were

suspend funds.

bought during the financial year under

Asset Management

review.

The Ministry has continued with its project

Building Security

to renovate and upgrade its premises. These

include

the

regional

offices

such as Oranjemund, Luderitz, Tsumeb and

Swakopmund.

Renovations

Oranjemund office will be undertaken in

The establishment of a security committee was

finalised

well,

and

was

mandated to look into all security matters of the organisation. Security upgrades

MME Annual Report 2013 - 2014

to enhance the security measures at

the Ministry with another Affirmative

Ministry’s headquarter were done during

Action Compliance Certificate during

the year under review. Fire alarm system

2013.

was successfully upgraded during the financial year under review.

The front

The

Ministry

has

entrance was also re-constructed to

and

enhance security situation at Ministry

underrepresented in the organisation.

headquarter.

One of the Organisation’s strong point

persons

identified

with

women

disabilities

is that it has continued to implement

Human Resources Management

affirmative

action

measures

and

interventions to ensure that employees, who

The Ministry has a total staff complement

are

physically

challenged,

are

represented within the Ministry.

of 240 employees of whom 51% are females and 49% are males. MME is

The Ministry is persistently engaged in

regarded as an attractive employer and

wellness and HIV/Aids information sessions.

this is largely due to the Ministry’s positive

Information sharing days were held in the

image as a professional employer.

year under review. The importance of these sessions is driven from the Minister’s

Posts

Quantity

office to ensure a maximum participation

Females

124

from the employees, which has proven to

Males

116

Total Vacancies Filed

240

be one of the contributing factors of the successful involvement of the employees. Team building sessions to encourage

Our institution has successfully recruited

better working spirit were also held in the

25 new staff members and nine staff

year under review.

members

were

promoted

well.

According to our records, out of the nine

The Ministry also initiated measure that

promoted, five were female and four

will enhance and promote awareness

were male.

of the activities of the Ministry. This was accomplished by attending trade fairs

A new directorate of Petroleum Affairs was

and three career fairs, which has proven

created in 2013, and the new proposed

to be a success.

structure of the ministry was submitted to the Office of the Prime minister and

Capacity Building MME granted Financial

feedback is awaited.

Assistance to five staff members to the tune of N$661150.99 for the fields

The

Ministry

keeping

pace

with

specified Affirmative Action targets. The Employment Equity Commission awarded

MME Annual Report 2013 - 2014

Office Administration, Law and Business Administration.

The systems and their statuses are indicated in the below table: System

Directorate

Current status

use

Solar Revolving Fund

Energy

Still under testing

Used for Administration

phase

of Loan application

Still under testing

Used for collection

phase

of Mineral Statistics

(SRF) Mineral Statistics System

Mines

production Laboratory Information

GSN

System

Still under testing

Used for Mineral Sample

phase

receiving application

Partly used

Automate processes of

Tender Management

Administration

System

and Finance

Training Register System

Administration

Still under testing

Automate processes of

and Finance

phase

training management for

administering ministerial tenders

Ministerial Employees FlexiCadastre System

Mines

Fully operational

Information & Communication Technology

EPLs Monitoring

Over the perioid under review, a new helpdesk system called SpiceWorks was implemented to centralise the provision of support to users. IT programmers have

The Ministry took cognisance of IT as an important support structure for the organisation, thus using IT to implement

developed and continue to work on tailored systems in-house, to support the business processes of the organization.

infrastructures and applications to ensure the effective operation of the Ministry.

Storage has also proven to be a challenge as

Although the IT department is faced with financial challenges, new IT equipments such as computers and switches to complement the newly appointed staff

the

graphical

data

generated

increases at a fast rate. In order to keep up with the demand of storage, 900GB hard drives has been acquired to increase the storage capacity for the Earth Data Namibia Database of the Geological

members has been acquired.

Survey of Namibia and the Ministry at Specialised

geological

software

and

large.

applications of graphical data used by geologists and scientists had their licenses renewed and upgraded to continue supporting the business of the Ministry, specifically the Geological Survey.

Insufficient

budget

for

training

staff

members, as well as for maintenance of the Ministry building still proves to be a challenge. The Ministry continue to

MME Annual Report 2013 - 2014

experience high staff turnover, with 10 staff members resigned from the Ministry during the year under review. Fifty percent of the positions on the establishment remain un-funded. Finally, user Involvement in Software Systems development is still a significant challenge.

LEGAL FRAMEWORK The draft Minerals Bill is in its final stages. However, changes to incorporate the provision

Strategic

Minerals

and

the recognition of Epangelo Mining Company for this purpose have been challenging, and will still be dealt with during the 2013/2014 financial year. The regulations will be developed following the promulgation of the Bill into law. (What is the update on this item) The Ministry drafted a Model Minerals Agreement the

with

the

Commonwealth

assistance

Secretariat

accordance with Section 49 of the Minerals (Prospecting and Mining) Act, 1992. The draft has been submitted to the Ministry of Justice and Attorney General for review. (what is the update on this item) One of the many accomplishments by the Ministry was the approved Nuclear Fuel Cycle Policy. The policy was approved by Cabinet for implementation.

MME Annual Report 2013 - 2014

The Ministry will start with the drafting of the subsequent regulatory frameworks to improve the control and management of the industry, investigate the possibilities for further local beneficiation where feasible as well as investigate possible nuclear power generation locally to complement the current energy mix.

NOTES

MME Annual Report 2013 - 2014

NOTES

MME Annual Report 2013 - 2014

NOTES

MME Annual Report 2013 - 2014

Ministry of Mines and Energy 6 Aviation Road Private Bag: 13297 Windhoek, Namibia. Tel: +264 61 284 8111 e-mail: info@mme.gov.na MME Annual Report 2013 - 2014