Staff Reporter
STRONG international mineral prices are helping to cushion Namibia’s mining sector against weaker production and rising operating costs, with gold, uranium, copper, tin and zinc prices providing support to export earnings despite growing pressure from fuel and transport costs.
According to the Chamber of Mines’ Monthly Mining Update for August 2026, gold, diamonds and uranium generated approximately N$3.9 billion in export earnings in July, accounting for about 62% of Namibia’s domestic exports.
Gold was the largest export commodity at N$1.91 billion, followed by diamonds at about N$1.39 billion and uranium at N$625 million.
Total mineral exports were valued at approximately N$4.5 billion during the month.
International commodity prices remained supportive in August despite continued geopolitical uncertainty and the conflict in the Middle East.
Copper reached a record monthly average of US$14,326 per tonne, 48% higher than in August 2025, while tin reached a record US$55,385 per tonne, 64% higher year-on-year.
Gold averaged US$4,411 per troy ounce, an 8% increase from July and 31% higher than a year earlier.
Uranium averaged approximately US$86 per pound, 20% higher year-on-year, while zinc increased to US$3,875 per tonne, its highest monthly average since mid-2022.
Diamonds remained the exception, with the IDEX Polished Diamond Price Index falling by about 7% over the past year as weak demand and competition from lab-grown diamonds continued to weigh on the market.
The Chamber said favourable mineral prices, particularly for gold and uranium, are providing an important buffer against rising operating costs.
However, Namibia’s headline inflation increased to 5.0% in August, while transport inflation reached 13.2%.
The cost of diesel has also risen sharply. The Walvis Bay price of 50ppm diesel increased from N$19.63 per litre in March to N$27.86 in September, an increase of about 42%.
Petrol increased from N$19.58 to N$25.08 per litre over the same period, representing a 28% increase.
The Chamber warned that higher fuel prices are raising haulage, processing and logistics costs across the mining industry and putting pressure on operating margins.
Operations with already compressed margins, particularly diamond producers and smaller-scale mines, are expected to be more exposed to these cost increases.
The Chamber also warned that a prolonged Middle East conflict could create further risks for the mining sector by keeping energy prices and inflation elevated and increasing global borrowing costs.
The OECD expects global economic growth to slow from 3.4% in 2025 to 2.9% in 2026 before improving marginally to 3.0% in 2027.
Higher interest rates and borrowing costs could constrain investment and economic activity, potentially weakening demand for mineral commodities, particularly industrial metals.
Despite these risks, the Chamber said the outlook for Namibia’s mining sector is expected to improve from 2027 as major projects and expansions come on stream.
Langer Heinrich is expected to continue ramping up uranium production, while Bannerman Energy’s Etango and Reptile Uranium Namibia’s Tumas projects could expand the uranium subsector.
The Rosh Pinah expansion is expected to support zinc production, while underground developments at QKR Navachab and B2Gold’s Otjikoto, together with Osino Resources’ Twin Hills project, could support future gold production.
Chamber of Mines Chief Executive Officer Fabian Shaanika said 2026 remained a transition year for Namibia’s mining sector.
“While production volumes remain subdued, strong commodity prices are providing an important buffer, supporting export earnings and helping the industry navigate the current period of weaker output and increasing cost pressures,” he said.
The Chamber identified weak diamond-market conditions, elevated operating costs and tighter financing conditions as key risks to future mining development.
Picture for illustrative purposes only. Photo: Chamber of Mines
