China’s mining investment in Namibia
Job creation in various communities
China has invested in various mineral resources in Namibia, including uranium, copper and rare earth elements.
China's investment in Namibia's mining sector is a cornerstone of the bilateral economic relationship. China has invested in various mineral resources in Namibia, including uranium, copper and rare earth elements. These investments cover a range of strategic minerals crucial for Namibia's energy and technology sectors.
In addition to contributing to Namibia’s gross domestic product (GDP) and government revenue through taxes, royalties and infrastructure development, China has also created numerous jobs in various communities nationwide.
Husab Uranium Mine
China’s key mining investments and projects are rooted in uranium, with the Husab Uranium Mine standing out as its single largest investment in Africa, with an investment of over N$92 billion since its operation in 2017.
Husab Uranium Mine remains a significant project and a testament to China-Namibia economic cooperation. It has the potential to produce 15 million pounds of uranium oxide annually, contributing about 7% of Namibia’s GDP, and has paid N$1.53 billion in tax to the state coffers in 2021.
Last year, Husab Uranium significantly bolstered government tax revenue, which grew by 55.9% from N$4.4 billion in 2022 to N$6.8 billion. Its corporate taxes paid to the government amounted to N$3.9 billion, representing an increase of 98.5%.
Husab Uranium prioritises environmental protection, with a theme centred around "producing clean energy, fuelling the environment and preserving the environment."
Rössing Uranium Mine
Another key mining investment and project is Rössing Uranium Mine, the world’s longest-running and one of the largest open-pit uranium mines, generating 4.5% of the global uranium supply.
Primarily owned by China National Uranium Corporation (CNUC), Rössing Uranium Mine has contributed approximately N$3.1 billion to the country’s real GDP and paid N$193 million in royalty tax, N$15 million in export levy and N$340 million in corporate income tax to the Namibian government in 2023.
Additionally, they contributed N$178 million as a pay-as-you-earn tax on behalf of employees. Last year, Rössing Uranium produced 2 920 metric tonnes of uranium oxide, contributing 4.5% to Namibia’s 13% world primary production of uranium.
According to its website, Rössing Uranium invested over N$41 million in community initiatives in 2023. “Of this amount, N$38 million went to the Rössing Foundation, and about N$3 million was in-kind and cash contributions to worthy community initiatives. The community projects focused on education, gender-based violence prevention and improving access to quality education,” the website read.
Having been in operation for 48 years, its commitment to sustainable development remains a priority, and this is a testament to its initiative of life mine extension (LoME), which focuses on extending production beyond 2036. It also follows the biodiversity action plan (BAP) to prevent, minimise, restore and rehabilitate its impact on ecosystems, an approach that helps reduce their footprint and protect biodiversity.
Xinfeng Investments' lithium processing plants
China also has key mining investments and projects in the lithium industry, with a notable one being the private-owned Xinfeng Investments, a Namibian company and a subsidiary of China's Tangshan Xinfeng Lithium Company.
The N$800 million lithium processing plant utilises a phased approach and is set to be fully operational by November this year, with objectives to provide universally affordable and clean energy.
According to spokesperson Hardijn Fredericks, the lithium plant has thus far created permanent jobs for 160 Namibians and 300 temporary workers in both its Uis and Omarur mines since 2022.
Fredericks underscored their understanding and compliance with the government’s safety standards and regulations, stating that they leave the environment as they found it and their employees work in spaces where dust is significantly suppressed.
“Xinfeng also complies with the government’s call for value addition to raw minerals in the country. We will thus be using top-of-the-range dense medium technology – one of only three on the continent – which will ensure efficiency while adhering to stringent sustainability practices,” he said.
He added that their operations use less water in the face of environmental demands and have boreholes they have drilled, in cooperation with the water ministry, to supply water to their mines.
“Namibia is an arid country with limited water resources; we thus have rigorous management plans, ensuring the underground water is undisturbed and evaporation is carefully managed,” Fredericks said.
Supporting communities
According to Fredericks, Xinfeng lithium mining has built an ecosystem of support for the communities in their areas of operation. He added that Xinfeng works closely with Long Fire Investments in a joint venture agreement. “We have an excellent business relationship yielding fruit for the community in terms of employment, sponsorships and community development,” he said.
This is self-evident in their donation of N$50 000 to the Martin Luther High School in Erongo and their contribution to the Havana Project School in Windhoek of N$100 000. They also support the Omaruru Town Council with food parcels worth N$200 000 for elderly people to date and contribute N$300 000 towards the mines ministry’s E-government mining portal.
“Without community engagement and buy-in, our operations would not be complete, as we depend on that social license for successful projects,” Fredericks noted.
Ohorongo Cement
Another Chinese investment that manifested itself was when a private-owned Chinese mining company, West China Cement, agreed to buy German construction company Schwenk Zement’s shares from Namibian cement company Ohorongo Cement for N$1.5 billion, according to an article by The Namibian.
The article said the deal is subject to approval by the Namibia Competition Commission (NaCC). Additionally, Ohorongo Cement must repay a loan from the First National Bank of Namibia for the takeover to proceed.
Interested investors
Chinese ambassador to Namibia Zhao Weiping has revealed that numerous companies have approached the embassy, expressing interest in investment opportunities in Namibia, since the beginning of the year. Zhao made the remarks at the embassy’s first press meeting of the year, held in June.
He said the investment interest comes as no surprise, as China has become Namibia’s largest source of investment and second-largest trading partner. “China’s direct investment accounts for 29.6% of the total foreign direct investment (FDI), per data from the Bank of Namibia, and bilateral trade volume exceeded US$1.3 billion for the first time last year,” Zhao said.
In addition to contributing to Namibia’s gross domestic product (GDP) and government revenue through taxes, royalties and infrastructure development, China has also created numerous jobs in various communities nationwide.
Husab Uranium Mine
China’s key mining investments and projects are rooted in uranium, with the Husab Uranium Mine standing out as its single largest investment in Africa, with an investment of over N$92 billion since its operation in 2017.
Husab Uranium Mine remains a significant project and a testament to China-Namibia economic cooperation. It has the potential to produce 15 million pounds of uranium oxide annually, contributing about 7% of Namibia’s GDP, and has paid N$1.53 billion in tax to the state coffers in 2021.
Last year, Husab Uranium significantly bolstered government tax revenue, which grew by 55.9% from N$4.4 billion in 2022 to N$6.8 billion. Its corporate taxes paid to the government amounted to N$3.9 billion, representing an increase of 98.5%.
Husab Uranium prioritises environmental protection, with a theme centred around "producing clean energy, fuelling the environment and preserving the environment."
Rössing Uranium Mine
Another key mining investment and project is Rössing Uranium Mine, the world’s longest-running and one of the largest open-pit uranium mines, generating 4.5% of the global uranium supply.
Primarily owned by China National Uranium Corporation (CNUC), Rössing Uranium Mine has contributed approximately N$3.1 billion to the country’s real GDP and paid N$193 million in royalty tax, N$15 million in export levy and N$340 million in corporate income tax to the Namibian government in 2023.
Additionally, they contributed N$178 million as a pay-as-you-earn tax on behalf of employees. Last year, Rössing Uranium produced 2 920 metric tonnes of uranium oxide, contributing 4.5% to Namibia’s 13% world primary production of uranium.
According to its website, Rössing Uranium invested over N$41 million in community initiatives in 2023. “Of this amount, N$38 million went to the Rössing Foundation, and about N$3 million was in-kind and cash contributions to worthy community initiatives. The community projects focused on education, gender-based violence prevention and improving access to quality education,” the website read.
Having been in operation for 48 years, its commitment to sustainable development remains a priority, and this is a testament to its initiative of life mine extension (LoME), which focuses on extending production beyond 2036. It also follows the biodiversity action plan (BAP) to prevent, minimise, restore and rehabilitate its impact on ecosystems, an approach that helps reduce their footprint and protect biodiversity.
Xinfeng Investments' lithium processing plants
China also has key mining investments and projects in the lithium industry, with a notable one being the private-owned Xinfeng Investments, a Namibian company and a subsidiary of China's Tangshan Xinfeng Lithium Company.
The N$800 million lithium processing plant utilises a phased approach and is set to be fully operational by November this year, with objectives to provide universally affordable and clean energy.
According to spokesperson Hardijn Fredericks, the lithium plant has thus far created permanent jobs for 160 Namibians and 300 temporary workers in both its Uis and Omarur mines since 2022.
Fredericks underscored their understanding and compliance with the government’s safety standards and regulations, stating that they leave the environment as they found it and their employees work in spaces where dust is significantly suppressed.
“Xinfeng also complies with the government’s call for value addition to raw minerals in the country. We will thus be using top-of-the-range dense medium technology – one of only three on the continent – which will ensure efficiency while adhering to stringent sustainability practices,” he said.
He added that their operations use less water in the face of environmental demands and have boreholes they have drilled, in cooperation with the water ministry, to supply water to their mines.
“Namibia is an arid country with limited water resources; we thus have rigorous management plans, ensuring the underground water is undisturbed and evaporation is carefully managed,” Fredericks said.
Supporting communities
According to Fredericks, Xinfeng lithium mining has built an ecosystem of support for the communities in their areas of operation. He added that Xinfeng works closely with Long Fire Investments in a joint venture agreement. “We have an excellent business relationship yielding fruit for the community in terms of employment, sponsorships and community development,” he said.
This is self-evident in their donation of N$50 000 to the Martin Luther High School in Erongo and their contribution to the Havana Project School in Windhoek of N$100 000. They also support the Omaruru Town Council with food parcels worth N$200 000 for elderly people to date and contribute N$300 000 towards the mines ministry’s E-government mining portal.
“Without community engagement and buy-in, our operations would not be complete, as we depend on that social license for successful projects,” Fredericks noted.
Ohorongo Cement
Another Chinese investment that manifested itself was when a private-owned Chinese mining company, West China Cement, agreed to buy German construction company Schwenk Zement’s shares from Namibian cement company Ohorongo Cement for N$1.5 billion, according to an article by The Namibian.
The article said the deal is subject to approval by the Namibia Competition Commission (NaCC). Additionally, Ohorongo Cement must repay a loan from the First National Bank of Namibia for the takeover to proceed.
Interested investors
Chinese ambassador to Namibia Zhao Weiping has revealed that numerous companies have approached the embassy, expressing interest in investment opportunities in Namibia, since the beginning of the year. Zhao made the remarks at the embassy’s first press meeting of the year, held in June.
He said the investment interest comes as no surprise, as China has become Namibia’s largest source of investment and second-largest trading partner. “China’s direct investment accounts for 29.6% of the total foreign direct investment (FDI), per data from the Bank of Namibia, and bilateral trade volume exceeded US$1.3 billion for the first time last year,” Zhao said.
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