Chinese mining investment in Namibia

China’s investment in Namibia’s mining industry is a cornerstone of the economic relationship between the two countries. China has invested in a variety of mineral resources in Namibia, including uranium, copper and rare earths. These investments cover a range of strategic minerals that are critical to 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 a large number of jobs in communities across the country.

Khasab Uranium Mine

China’s major mining investments and projects are rooted in uranium, with the Husab uranium mine being its largest single investment in Africa, with investments exceeding N$92 billion since it began operations in 2017.

The Khasab uranium mine project is an important project and witness of China-Namibia economic cooperation. It can produce 15 million pounds of uranium oxide annually, accounting for about 7% of Namibia’s GDP. In 2021, it paid 1.53 billion Namibian dollars in taxes to the Namibian treasury.

Last year, Hassab Uranium significantly increased government tax revenue, increasing by 55.9% to N6.8 billion from N4.4 billion in 2022. The company paid N3.9 billion in corporate tax to the government, an increase of 98.5%.

Hasab Uranium attaches great importance to environmental protection, and its theme is “producing clean energy, promoting environmental development and protecting the environment.”

Rossing Uranium Mine

Another important mining investment and project is the Rossing uranium mine, one of the oldest and largest open-pit uranium mines in the world, accounting for 4.5% of the global uranium supply.

Rossing uranium mine, which is mainly owned by China Uranium Corporation (CNUC), contributes about N$3.1 billion to Namibia’s real GDP and paid N$193 million in royalty taxes, N$15 million in export taxes and N$340 million in corporate income tax to the Namibian government in 2023.

In addition, they paid withholding taxes of N$178 million on behalf of their employees. Last year, Rossing Uranium produced 2,920 tonnes of uranium oxide, contributing 4.5% to Namibia’s 13% share of world uranium production.

According to its website, Rossing Uranium invested more than N$41 million in community programs in 2023. “Of this, N$38 million was donated to the Rossing Foundation and approximately N$3 million was provided in-kind and cash contributions to worthwhile community programs. Community projects focus on education, prevention of gender-based violence and improving access to quality education,” the website reads.

The mine has been operating for 48 years and has always been committed to sustainable development, as evidenced by its Life of Mine Extension (LoME) plan, which aims to extend production beyond 2036. The mine also follows a Biodiversity Action Plan (BAP) to prevent, minimize, restore and regenerate its impact on ecosystems, an approach that helps reduce its footprint and protect biodiversity.

Xinfeng’s lithium processing plant

China also has significant mining investments and projects in the lithium sector, notable among which is privately owned Xinfeng Investments, a Namibian company and subsidiary of China’s Tangshan Xinfeng Lithium.

The N$800 million lithium processing plant is being built in phases and is expected to be fully operational in November this year, with the goal of providing universally affordable clean energy.

Spokesman Hadien Fredericks said the lithium plant had created permanent jobs for 160 Namibians and 300 temporary workers at its Uis and Omarur mines since 2022.

Fredericks stressed that they understand and comply with government safety standards and regulations, saying the environment remains the same as when they left it, and their employees work in a space where dust is effectively suppressed.

“Xinfeng has also responded to the government’s call to increase the value of domestic raw ore. As such, we will use top-grade dense media technology – one of only three in the continent – which will ensure efficiency while adhering to strict sustainability practices,” he said.

He added that in the face of environmental demands, they were operating with less water and working with the Ministry of Water Resources to drill boreholes to supply water to the mines.

“Namibia is an arid country with limited water resources; therefore we have a strict management plan in place to ensure that groundwater is not disturbed and that evaporation is strictly managed,” says Fredericks.

Supportive Community

Fredericks said New Peak Lithium has built an ecosystem of supportive communities within its operating areas. He added that New Peak Lithium and Long Fire Investments signed a joint venture agreement and worked closely together. “We have established a good business relationship that has delivered fruitful results for the community in terms of employment, sponsorship and community development,” he said.

This was evident from their donations of N50,000 to Martin Luther High School in Erongo and N100,000 to Havana Project School in Windhoek. They also provided food parcels worth N200,000 to Omaruru Town Council to help the elderly and N300,000 to the Ministry of Mines’ e-Government Mining Portal.

“Our operations would not be complete without community engagement and support as we rely on social license for the success of our projects,” Fredericks noted.

Ohorongo Cement

In another Chinese investment, Chinese private mining company Western Cement agreed to acquire a stake in German construction company Schwenk Zement from Namibian cement company Ohorongo Cement for N$1.5 billion, The Namibian reported.

The article states that the transaction is subject to approval by the Namibian Competition Commission (NaCC). In addition, Ohorongo Cement must repay a loan from the First National Bank of Namibia before the acquisition can proceed.

Interested investors

Chinese Ambassador to Namibia Zhao Weiping revealed that this year, many companies have contacted the Chinese Embassy in Namibia to express their interest in investing in Namibia. Ambassador Zhao made the above remarks at the first press conference of the Chinese Embassy in Namibia this year in June.

He said China’s investment interest in Namibia is not surprising as it has become Namibia’s largest source of investment and second largest trading partner. “According to the Bank of Namibia, Chinese direct investment accounts for 29.6% of Namibia’s total foreign direct investment, and bilateral trade exceeded $1.3 billion for the first time last year,” Zhao said.