Namibia’s mining sector posted a sharp rise in revenue in 2025 despite a contraction in output, as higher gold prices and stronger uranium production offset declines in other commodities, industry officials said Wednesday.
According to the Chamber of Mines of Namibia, total sales revenue in the sector rose by about 25 percent to 64.2 billion Namibian dollars (around US$3.9 billion), even as mining and quarrying activity shrank by 9.4 percent during the year.
The contrasting performance highlights the extent to which commodity prices and shifts in production mix can influence overall earnings in resource-dependent economies.
Mining remains a central pillar of Namibia’s economy, contributing roughly 14 percent to gross domestic product and generating significant export earnings.
The sector also delivered around 7.8 billion Namibian dollars in government revenue in 2025 through corporate taxes, royalties and export levies, underlining its importance to public finances.
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Officials said weaker diamond production and declining output in some base metals weighed on overall activity. Diamond prices also fell by an estimated 10 to 12 percent, reflecting softer global demand and increasing competition from lab-grown alternatives.
Despite this, stronger gold prices and a rebound in uranium output helped cushion the downturn.
Gold has benefited from its status as a safe-haven asset amid global economic uncertainty, while uranium demand has been supported by renewed interest in nuclear energy as countries seek low-carbon power sources.
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The chamber said uranium production rose significantly during the year, contributing to export revenues and improving the sector’s outlook.
Investment activity in the mining sector also showed resilience. Exploration spending increased by 22 percent to 1.5 billion Namibian dollars, while fixed investment rose by 31 percent to 7.46 billion Namibian dollars, driven by ongoing mine expansions and new development projects.
However, the report flagged concerns over declining investor confidence. Namibia’s ranking for mining investment attractiveness has slipped, with investors citing policy uncertainty and local ownership requirements as potential constraints.
Analysts say maintaining a predictable regulatory environment will be key to sustaining investment, particularly as global competition intensifies for capital in critical minerals such as uranium, copper and rare earth elements.
Looking ahead, Namibia’s mining sector is supported by a pipeline of projects across uranium, gold and other minerals, which could drive medium-term growth if successfully developed.
The chamber said that unlocking this potential would depend on continued investment, stable policies and the ability to adapt to shifting global commodity trends.
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Despite the challenges, the sector’s strong revenue performance in 2025 underscores its resilience and its continued role as a backbone of Namibia’s economy.
