Mining journal

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Namibia: Abundant Exploration Opportunities DebMarine diamond recovery vessel. Offshore diamond recovery is set to increase its share of total output Namibia is currently developing one of southern Afri- ca's most dynamic mineral industries, a trend that is set to continue well into the next century. Since 1992, explora- tion expenditure has increased by more than 500%, and today more than 60 companies are actively exploring the exciting potential of Namibia's mineral sector. Recent ex- ploration and investment initiatives have already led to the proposed development of two major base metal projects at a cost of over US$750 million; these will more than treble the value of base metal production in Namibia by 2000. This has been made possible because of fair and transparent mining regulations and taxes, well-developed power and transport infrastructures and an established democratic government, in a country with strong mining traditions and world-class mineral deposits. Namibia first featured in a Mining Journal supplement in October 1992. Since then there have been considerable changes. The Government, well aware of mining's im- portance to Namibia's economy, has brought in a substan- tial package of incentives designed specifically to encour- age exploration. These cover issues such as taxation, land access and rights of tenure. In addition, an excellent range of high- quality geological information is readily avail- able to exploration companies. This new supplement provides the international finan- cial and exploration community with a re- view of the progress and success achieved over the last five years, and of the opportu- nities awaiting potential investors in this dynamic and geologically prospective coun- try. Situated in the western half of the south- ern African subcontinent, Namibia encom- passes an area of over 824,000 km². It has a hot and dry climate. Rainfall is extremely variable, ranging from less than 200 mm in the south to about 800 mm in the northeast. With less than 50 mm average annual rain- fall, the coastal Namib Desert is one of the most arid places on Earth. Only the Kunene, Okavango, Zambezi and Chobe/Linyanti rivers, along Namibia's northern border, and the Orange River, which forms the south- ern frontier, are perennial. The Kalahari Desert, with an average rainfall of less than 200 mm, extends over the eastern part of the country, bordering Botswana and South Africa. It is separated from the Namib by a high inland plateau that reaches elevations of over 2,000 m and is covered by shrub and mixed tree savannah. Namibia: Abundant Exploration Opportunities 1 Well-developed Infrastructure 2 An Inviting Business Environment 4 Streamlining the Law 5 The Geological Survey 7 Geology and Mineral Sector Opportunities 9 A Key Economic Sector 13 Putting Prospectivity into Perspective 14 Contact names and addresses 16 COUNTRY SUPPLEMENT

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Transcript of Mining journal

Page 1: Mining journal

Namibia: AbundantExploration

Opportunities

DebMarine diamond recovery vessel. Offshore diamondrecovery is set to increase its share of total output

Namibia is currently developing one of southern Afri-ca's most dynamic mineral industries, a trend that is set tocontinue well into the next century. Since 1992, explora-tion expenditure has increased by more than 500%, andtoday more than 60 companies are actively exploring theexciting potential of Namibia's mineral sector. Recent ex-ploration and investment initiatives have already led tothe proposed development of two major base metalprojects at a cost of over US$750 million; these will morethan treble the value of base metal production in Namibiaby 2000. This has been made possible because of fair andtransparent mining regulations and taxes, well-developedpower and transport infrastructures and an establisheddemocratic government, in a country with strong miningtraditions and world-class mineral deposits.

Namibia first featured in a Mining Journal supplementin October 1992. Since then there have been considerablechanges. The Government, well aware of mining's im-portance to Namibia's economy, has brought in a substan-tial package of incentives designed specifically to encour-age exploration. These cover issues such as taxation, landaccess and rights of tenure. In addition, an excellent rangeof high- quality geological information is readily avail-

able to exploration companies. This newsupplement provides the international finan-cial and exploration community with a re-view of the progress and success achievedover the last five years, and of the opportu-nities awaiting potential investors in thisdynamic and geologically prospective coun-try.

Situated in the western half of the south-ern African subcontinent, Namibia encom-passes an area of over 824,000 km². It has ahot and dry climate. Rainfall is extremelyvariable, ranging from less than 200 mm inthe south to about 800 mm in the northeast.With less than 50 mm average annual rain-fall, the coastal Namib Desert is one of themost arid places on Earth. Only the Kunene,Okavango, Zambezi and Chobe/Linyantirivers, along Namibia's northern border, andthe Orange River, which forms the south-ern frontier, are perennial. The KalahariDesert, with an average rainfall of less than200 mm, extends over the eastern part ofthe country, bordering Botswana and SouthAfrica. It is separated from the Namib by ahigh inland plateau that reaches elevationsof over 2,000 m and is covered by shruband mixed tree savannah.

Namibia: Abundant Exploration Opportunities 1Well-developed Infrastructure 2An Inviting Business Environment 4Streamlining the Law 5The Geological Survey 7

Geology and Mineral Sector Opportunities 9A Key Economic Sector 13Putting Prospectivity into Perspective 14Contact names and addresses 16

COUNTRYSUPPLEMENT

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The majority of Namibia's 1.6 millionpopulation lives in the rural north and inthe towns of the central and coastal regions;in southern Namibia the population densityis less than one person per square kilome-tre. Indigenous populations have been liv-ing in the area of modern Namibia for hun-dreds of years and there is ample archaeo-logical evidence of ancient settlements, in-cluding ore smelting activities.

Portuguese adventurers first landed onthe Namibian coast in 1484 on their wayaround the Cape of Good Hope. However,it was only 400 years later that systematicexploration took place when Germanyclaimed the region as one of her colonies.The German protectorate of South WestAfrica existed from 1884 to 1915, afterwhich the country was entrusted to thenewly-formed League of Nations. Admin-istration of the region passed to South Af-rica after the Second World War, before Na-mibia achieved its independence in March1990.

The country's prospectivity for miner-als has long been recognised. As early as1855, copper production began at theWalvisch Bay Mining Company's Match-less mine, just west of Windhoek. By theturn of the century, further base metal mineshad been developed at Tsumeb in the northof the country and, eight years later, someof the highest-quality alluvial diamonds inthe world were discovered near Lüderitz.

These, and more recent discoveries, cre-ated the basis for an important mining in-dustry that underpins the modern Namibianeconomy by providing about 60% ofNamibian exports and 15% of the country'sGDP.

Today Namibia is a thriving democraticstate whose President, Dr Sam Nujoma, wassworn in following the first national elec-tions late in 1989 and was returned as Presi-dent in 1994 after the country's second

Dunes in the Namib Desert.Namibia hosts a fascinatingrange of wildlife, much of whichhas evolved especially to survivein the arid desert environment

multi-party elections. His Government hasadopted policies aimed at improving livingstandards and employment opportunities forall Namibians.

While current objectives aim for eco-nomic diversification, mining's importanceas a cornerstone of the economy is appreci-ated by a Government eager to promoteforeign investment and to expand its min-ing sector. The Ministry of Mines and En-ergy is striving to improve the technical in-frastructure in what has become one of Af-rica's most attractive exploration and min-ing environments. Its Directorate of Min-ing is busy streamlining licence proceduresand bringing licence holdings into an ac-cessible GIS-based format.

The Geological Survey of Namibia, al-ready in possession of one of the most ex-tensive geological archives in Africa - in-cluding a complete inventory of previousexploration work that stretches back almosta century - is incorporating the results frommodern surveys in order to optimise infor-mation on the country's geological poten-tial. Furthermore, high-resolution geophysi-cal data acquisition and prospectivity sur-vey programmes now under way continueto identify exploration targets, especially inareas where thick sand cover obscures thebedrock geology.

Well-developedInfrastructure

The port of Walvis Bay provides Namibiawith a modern outlet to world markets

Namibia's strong history of mining andassociated industrial development has pro-vided the country with an infrastructure thatis one of the best developed in Africa. Itscapital, Windhoek, is among the fastestgrowing cities in the world, whilst the coun-try's excellent road system, extending over40,000 km, is one of the most extensive inAfrica. The railway network of more than2,400 km of track currently links many ofthe major mining areas and towns, and fa-cilitates the transport of goods to foreignmarkets. Plans for further development in-clude railway links into Angola, Zambia andTanzania.

The deep-water port at Walvis Bay is aregular port of call for major shipping linesand continues to attract investment. Profitshave increased by over 70% during the lastyear, and its container and bulk mineral han-dling facilities are continuing to improvethrough the installation of new machinery.A US$12 million European InvestmentBank loan for a new container terminal in-cludes plans to dredge the port and increaseits depth by 25%. There is the further pos-sibility of a US$35 million World Bank loanto develop the existing Export ProcessingZone.

Air travel in Namibia continues to growand there are over 330 private and publicairports and airstrips throughout the coun-try. Namibia's international airline - Air Na-mibia - flies to over 20 destinations in south-ern Africa and Europe.

A NEW NATION

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Namibia benefits from an extensive andreliable electricity supply. The nationalagency, Nampower, produces electricitypriced at 1.8 USc/kWh, one of the lowestcosts in the world, thus offering a major fi-nancial incentive to energy-intensive min-ing and mineral processing activities. Elec-tricity is generated at the 240 MW Ruacanahydro-electric plant on the Kunene Riverand at the 120 MW coal-fired Van Eckpower station near Windhoek.

A transmission agreement with SouthAfrica's Eskom enables Nampower to drawon additional supplies at times of peak load.A 450 MW hydro-electric plant is plannedat Epupa on the Kunene to meet long-termdemand. These facilities guarantee that elec-tricity shortages so typical of many Afri-can countries are not a problem in Namibia.

Investment in Namibia's energy sectoris at a peak since independence. The pro-posed US$700 million development of theKudu gas field could allow Namibia to be-come a major energy producer by 2002.

The field, located some 170 km off the

Orange River mouth and believed to beamong the largest in the world, was deline-ated by Shell, in partnership with Texacoand the South African company Engen, af-ter the award of an exploration licence inMay 1993. Expectations are that a pipelineto Oranjemund would deliver 100 Mft³/dof gas, with resources sufficient to supply a1,750 MW power station for 30 years. Far-

Windhoek, Namibia's capital, is thecountry's business and commercial centreas well as being the seat of government

ther offshore, hydrocarbon exploration isbeing carried out by Norsk Hydro who, withpartners Statoil and Saga Petroleum, hasspent over US$45 million on offshore drill-ing since 1992. Other licence holders in-clude Sasol, Ranger and Chevron.

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INFRASTRUCTURE

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An InvitingBusiness

EnvironmentMining is the backbone of the Namibian

economy, having yielded export earningsof over US$700 million and tax revenuesof US$72 million during the 1996-97 fis-cal year. Although foreign investment hasincreased dramatically since independence,the Government is continuing its efforts topromote a favourable investment climatefor international mining and explorationcompanies. This has led to many initiativesand incentives.

The launch of the First National Devel-opment Programme at the end of 1995 hasbeen complemented by a concerted invest-ment promotion and industrialisation pro-gramme. This includes the Export Process-ing Zone (EPZ) regime and the creation ofan Offshore Development Company, aswell as the upgrading of the Namibia In-vestment Centre and its offices overseas.

Moreover, the establishment of a coun-try-wide Industrial and Small- to Medium-sized Enterprises Park programme has en-couraged private investment into Namibia'sgrowing small-scale mining sector. Apartfrom stimulating foreign and domestic in-vestment and expertise within the miningsector, these initiatives have also boostedinvestment into the financial, legal andcommercial ancillary services available inthe country's major towns and cities.

The EPZ special incentive is designedto aid Namibia's export industry. It has beendevised to benefit export-orientated manu-facturers, addressing markets such as theUnited States and Europe with which Na-mibia has preferential trade agreements.

An EPZ business park is being devel-oped in Walvis Bay, but factories elsewherein the country may also be granted EPZ sta-tus. Enterprises with EPZ status do not paycorporate tax, duties on imported goods,and stamp, sales and transfer duties on EPZactivities.

Whilst primarily aimed at manufactur-ers, mining can also benefit from thesemeasures where beneficiation and value-addition are built into mineral exploitationplans. The granting of EPZ status to a pro-posed US$20 million ferro-manganeseplant, intended to process ore from

Cranford Namibia's Otjosondu mine in ajoint venture headed by South Africa's Pu-rity Manganese, is an indication of Na-mibia's determination to promote furtherdownstream processing of mining products.Companies interested in developing thecountry's mineral resources can obtain fullinformation on these incentives from theNamibia Investment Centre.

Namibia has a favourable tax regime formining. Taxation is based on a sliding scaledesigned to relieve the burden on develop-ing mines, and only reaches higher levelswhen mines are operating profitably. Inpractice, taxation equates to a base rate of25% with a theoretical maximum of 55%,although most operating mines pay around35%. A special tax rate of 55% is levied ondiamond mining, with an additional 10%royalty payment. Deductible allowancesinclude all exploration expenditure, devel-opment expenditure (equalised over threeyears), and contributions to environmentalrehabilitation funds.

In addition to strong government sup-port for the mining industry, Namibia hasan active Chamber of Mines that representsover 95% of the mining companies operat-ing in the country. Several committeeswithin the Chamber oversee matters ofhealth and safety, labour relations, explo-ration expenditure, production statistics andtechnological exchange. They also act as achannel for communication between the in-dustry and the Government. Explorationand mining companies new to Namibia canbenefit greatly from the expertise and in-formation available to members of theChamber of Mines.

The Namibian Institute of Mining andTechnology (NIMT), established after in-dependence through donations of overUS$1 million from Rössing Uranium, is amajor initiative to foster the training ofskilled personnel for the mining industry.Located at Arandis, NIMT now has ex-tended its role to cover the agricultural, fish-ing and manufacturing sectors, and plays avital part in the development of the coun-try's human resources.

The Tsumeb smelter, a key factor inadding value to Namibia's mineral wealth

Dimension stone is becoming increasingly important in export markets

INCENTIVES FOR INVESTMENT

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Streamliningthe Law

Competition for mineral sector invest-ment in Africa has never been stronger and,with over US$500 million invested in sub-Saharan Africa (excluding South Africa)during the last year, the stakes are high.Spurred by a flourish of activity by bothCanadian and Australian companies, and bythe emergence of South Africa's mininghouses on to the world stage, since inde-pendence the Ministry of Mines and Energyhas continued to update its mining law andinvestment policy.

The Minerals (Prospecting and Mining)Act was tabled in 1992 and promulgated in1994. The Government has since put greateffort into making the country's package ofinformation and incentives even more at-tractive. This will be further enhanced bythe current round of revisions to the Miner-als Act, not least by freeing substantial ar-eas of Namibia still held as mining claimsfor modern exploration techniques.

These new revisions remove some of themore onerous reporting duties on explora-tion companies, placing activity within li-cence areas as the main criterion for the re-tention of a licence. The Act is regarded asfair and transparent, and has the benefit ofbeing overseen by Namibia's independentjudiciary.

The Government of Namibia, throughthe Ministry of Mines and Energy (MME),is the sole regulatory agency for explora-tion and mining in the country. All mineralrights are vested in the State, so that pros-pecting and mining may only be undertakenunder a licence issued by the Mining Com-missioner.

The Government has no legal powersto acquire an interest in a mining propertyor other mineral operation against thewishes of the owner, and can only partici-pate at the request of the company con-cerned. Ownership rights held by both do-mestic and foreign companies are protectedagainst expropriation by the Namibian con-stitution.

Aware of the importance of efficient li-cence management, the MME is currentlyupdating and streamlining the issuing of li-cences to mining and exploration compa-nies. This will be achieved through the im-plementation of a GIS-based data storageand retrieval system.

Namibia's coastline hosts Africa's largestsolar salt industry

The Ministry is also aware of the prob-lem of “landlocking”, which arises princi-pally from the retention of mining claims.The new Minerals Act contains provisionsspecifically designed to curb this practice,and as of April 1997 (the end of the three-year period since the promulgation of theAct), claim holders who are not able to dem-onstrate the required activity on a claim willlose their rights, thus releasing the land toother prospectors and developers.

The effectiveness of the Minerals Actcan be seen in the number and types of li-cences and claims registered between 1990

and 1995. During this period, the numberof mining claims fell drastically while pros-pecting licences experienced a major in-crease.

Modest annual licence fees do not rep-resent a barrier to exploration and mining.Fees range from N$50 (US$10) for miningclaims to N$1,000 (US$200) for an exclu-sive prospecting licence covering an areaof 100 km². Mining licence fees range fromN$1,000 (US$200) for a mine with a grossannual revenue of less than N$10 million(US$2 million), to N$5,000 (US$1,000) forthose with a gross revenue exceeding N$10million.

While the State holds all mineral rightsin Namibia, vast tracts of land are ownedprivately. This form of tenure has been inexistence for many decades and results fromthe original division of the land at the timeof European colonialisation. Thus explora-tion and mining on privately held land re-quires permission of access from the owner.The Namibian Chamber of Mines has drawnup a model agreement for companies andlandowners to assist in negotiations. AnAncillary Rights Commission within theMinistry of Mines and Energy has also beenestablished under the Minerals Act, to pro-vide arbitration in disputes.

Mineral LicencesThe Minerals Act allows for various types of prospecting and mining licences, coveringboth small-scale and formal activity. A brief summary of each is given below.

Mining ClaimsAvailable only to Namibian citizens for the development of small-scale mines and min-eral deposits, mining claims are valid for three years. Two-year extension periods arepossible providing that the claim is being developed or worked. Up to a maximum of tenclaims can be held at any one time.

Reconnaissance LicenceDesigned for regional, mainly remotely sensed exploration, a reconnaissance licence isvalid for six months on a non-renewable basis. This licence facilitates the identificationof exploration targets and is only exclusive in special cases.Exclusive Prospecting LicenceThis three-year licence allows systematic prospecting in areas of up to 1,000 km². It givesexclusive exploration rights to the land and may be extended twice for two-year periodsif demonstrable progress is shown. Renewals beyond seven years require special approvalfrom the Minister.

Mining LicenceThis gives the holder the exclusive mining right in the licence area for a period of 25years or the life of the mine, with renewals valid for 15-year periods. The holder is re-quired to demonstrate the financial and technical ability to develop and operate a mine. Amining licence also gives the holder the exclusive right to approve the development ofother mines on the same property.

Mineral Deposit Retention LicenceThis allows an exploration company in certain circumstances to retain tenure on a pros-pecting licence, mining licence or mining claim without mining obligations. It is valid forfive years, with two-year renewal periods. The licence holder must, however, meet workand expenditure obligations and submit regular project reviews.

MINERAL LICENSING

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Composite aeromagnetic data set of Namibia. New high-resolution data are availableof selected areas, and are planned to cover the whole country

GEOPHYSICAL COVERAGE

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The GeologicalSurvey

Above left: High-resolution aeromagneticsurveys add new detail to the country'sgeophysical databaseAbove: The new headquarters of theMinistry of Mines and Energy and theGeological Survey in Windhoek

The Geological Survey of Namibia(GSN) is the country's principal repositoryof geological data, possessing mineralrecords collected over the past 100 years.The Survey originated in 1903 when theGerman Colonial Office appointed govern-ment geologists to search for groundwaterand to start geological mapping.

At independence, the Geological Sur-vey became part of the Ministry of Minesand Energy. It is subdivided into three di-visions; Regional Geoscience, responsiblefor geological mapping and geophysicalsurveys; Applied Geoscience, concernedwith the exploration and assessment of min-eral deposits and the provision of analyti-cal services, as well as engineering and en-vironmental geology; and Geotechnology,committed to the computation of all ac-quired data and their dissemination.

Of great importance to the promotionof mineral exploration is the GeologicalSurvey's NAMDAT computerised data re-trieval system. NAMDAT contains detailedinformation on over 1,500 known major andminor mineral occurrences throughout thecountry, drawn principally from reportssubmitted to the Ministry of Mines andEnergy under the terms governing prospect-ing and mining licences. Data compiledfrom reports under current licences are heldconfidentially until the licences expire orare relinquished, after which they are placedon open file to assist other prospectors.

Comprehensive airborne geomagneticsurvey data acquired during the period1962-1992 have recently been co-refer-enced into a single data set in collaborationwith the German Federal Institute for Ge-ology and Natural Resources (BGR). Usedin conjunction with a specially created dig-

ital terrain model, aeromagnetic data pro-vide an effective tool in mineral explora-tion, as they not only characterise areas ofknown mineralisation according to theirmagnetic susceptibility, but also identifybedrock beneath thick non-magnetic se-quences.

This is of great importance as 50% ofNamibia is covered by young sediments ofthe Kalahari and Namib Deserts. Prospec-tors and geologists are now able to obtain ageological understanding of the rocks un-derlying these vast areas for the first time.

While the composite aeromagnetic dataare an excellent regional tool, the GSN hasrecognised that a higher definition is neededfor detailed targeting of exploration areas.To fill this need, the organisation has be-gun a programme of high-resolution air-borne magnetic surveys. Carried out at a linespacing of 200-400 m and at altitudes of80-100 m, and used in conjunction withradiometric measurements, they provide

distinct signatures of mineralisation andtheir host lithologies.

These surveys are jointly funded by theNamibian Government and the EuropeanUnion through the SYSMIN mechanism ofthe Lomé Convention. Data are availableat reasonable cost and the income gener-ated is being recycled in a revolving fundto finance further airborne geophysical sur-veys.

In addition, the GSN has compiled a na-tionwide gravity map based on over 2,000ground stations. All of these data sets addto the understanding of the country's com-plex geology and mineralisation styles, andwhen used together provide a powerful ex-ploration tool.

MINERALS DEVELOPMENT FUNDNamibia has a long history of mineral production, and is currently a major contributor toworld supply of diamonds and uranium. In order to diversify the mining sector in thefuture, the Government is strongly supporting increased exploration.Until recently, the international exploration community has perceived Namibia to haveonly limited prospectivity. Despite recent discoveries such as Navachab, Haib, Skorpion,Khusib Springs and Tschudi, which have shown this perception to be outmoded, the countryhas yet to receive its fair share of exploration investment.Recognising the importance of inward investment to an industry vital to the country’seconomy, the Government has further enhanced the package of assistance available tocompanies engaged in mineral exploration and development by the introduction last yearof a Minerals Development Fund. The objective of this fund is to diversify the miningsector by providing finance, as loans and grants, as well as to support private explorationand development. The fund will also be used to develop national geoscience databases,thereby improving deposit modelling. Mineral industry training facilities and programmeswill be expanded to increase the availability of professionally and technically trainedNamibians, capable of holding senior positions within a growing mining sector.

THE GEOLOGICAL SURVEY

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NAMIBIA’S GEOLOGY

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Geology and Mineral Sector Opportunities

[Figures indicate locations on thegeology map]

Southern Africa contains a number ofhighly prospective geological provinces,spanning a geological history that extendsover 3,800 million years. The region southof the Kunene and Zambezi Rivers, cover-ing Namibia, Botswana, Zimbabwe andSouth Africa, contains some of the world'smost important gold, platinum, diamondand base metal deposits, as well as signifi-cant reserves of nuclear and fossil fuels,semi-precious stones and industrial miner-als.

With a geological history related to thedevelopment of several cratonic blocks andsurrounding mobile belts, and covering atimespan from late Archaean to Cainozoic,Namibia hosts a wide variety of minerali-sation styles. Nonetheless, developing thecountry's potential as a major player on theworld mining scene will require the appli-cation of modern exploration models andmethods.

The Geological Survey has undertakena review of Namibia's known mineralisa-tion, and a provisional interpretation of itsmineral potential is shown in the map onbelow. The compilation takes account of thewide variety of mineralisation styles thatinclude Mississippi Valley-type (MVT)lead-zinc, volcanogenic massive sulphides(VMS), porphyry copper, sedimentaryexhalative (SEDEX) lead-zinc, and skarnand shear-related gold.

Northern Namibia is underlain by theCongo Craton. Igneous andmetasedimentary rocks of Late Archaean(2,600 Ma) to Lower Proterozoic age out-crop along its southern margin, whileyounger Late Proterozoic to Cainozoicstrata cover it to the north. The KalahariCraton, which underlies southeastern Na-mibia, is mainly of Lower Proterozoic age(2,200 to 1,800 Ma), although it probablycontains Archaean remnants along its east-ern margins. The craton is completely cov-ered by platform sediments of the NamaGroup (Late Proterozoic to Cambrian), theKaroo Sequence (Carboniferous to Jurassic)and the Cainozoic Kalahari Sequence,which attains thicknesses of up to 240 m.

In northern Namibia, the massively lay-ered 2,100 Ma anorthosite-troctolite

Kunene Complex intruded older graniticgneisses of the Epupa Metamorphic Com-plex, and contains bodies of massivetitaniferous magnetite. It has been pros-pected for Fe, Ti, Cr, V and platinum groupelements (PGE). Meanwhile, the 1,900 MaGrootfontein Mafic Complex to the southof Grootfontein shows many characteristicsconducive to the formation of massive ordisseminated Cu-Ni-PGE-sulphide depos-its.

Economically more interesting are theMid-Proterozoic rocks of the KhoabendusGroup and the Okapuka Formation of north-western Namibia, and the Elim Formationof central Namibia. The Khoa-bendus,Okapuka and Elim successions consist ofthick (basaltic and andesitic to rhyolitic)volcanics and metasediments (quartzite,chert, phyllite and minor marble) that mayhave formed in island arc or active conti-nental margin settings.

Known mineral occurrences hosted by

these rocks indicate their potential for VMSdeposits. The Elim Formation carries nu-merous small copper occurrences, and shearzones within the lavas have been mined ona small scale for gold and copper. Iron for-mations at the top of this unit locally con-tain lead-zinc mineralisation. Thevolcanosedimentary Rehoboth Sequenceoutcrops to the south of Windhoek. TheGaub Valley Formation of the western Re-hoboth area consists of biotite schists thatare extensively intruded by metamorphoseddolerite dyke swarms. Shear zones in theschist are known to carry gold.

The Mid-Proterozoic (1,400 to 1,200Ma) Sinclair Sequence, comprising fourcycles of clastic sedimentation and bimo-dal volcanism, forms an arcuate chain rim-ming the northwestern part of the KalahariCraton, and contains numerous vein-typecopper-lead-zinc and gold occurrences.Mafic intrusions along rifts may host nickel-copper sulphides and PGE mineralisation.

Upper Sinclair Sequence equivalents inthe Rehoboth-Witvlei area are host to red-bed copper-silver mineralisation. This typeof mineralisation was mined at the defunctKlein Aub mine [1] (5 Mt, 2 % Cu, 50 ppmAg, up to 1ppm Au and minor PGE), whilesome 13 Mt of ore resources have been iden-tified in playa lake settings in the Witvleiarea. The largest of these occurrences hasresources of 6 Mt containing 1.8 % copper.

Pre-tectonic metasediments of thec.1200 Ma Namaqua Metamorphic Com-plex

Isoclinal folding of turbidite sequences inthe southern Kaoko zone of the DamaraBelt

Simplified tectonic framework of SouthernAfrica.Namibia is underlain by the Congoand Kalahari Cratons, and by themineral-rich Damara fold belt

NAMIBIA’S GEOLOGY

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in the Aus area contain magnetitequartzite which may have a similar age andorigin to the South African Aggenys, BlackMountain and Gamsberg magnetite quartz-ite, and associated SEDEX/VMS lead-zincdeposits. There is therefore potential forSEDEX/VMS base metal deposits interrigenous metasedimentary units of theNamaqua Metamorphic Complex.

Several porphyry copper-molybdenumdeposits occur in the 1,950 to 1,800 Magranites and granodiorites of the VioolsdrifSuite, of which the Haib [2] (650 Mt, 0.37% Cu) and Lorelei prospects, just north ofthe Orange River, are well-known. Futureexploration in this area should be focusedon highly metamorphosed porphyry copper-molybdenum deposits in recognisableVioolsdrif intrusives within the NamaquaMetamorphic Complex.

In southeastern Namibia, post-tectonicpegmatites with ages of about 900 Ma carrytantalum mineralisation with minor beryl-lium and lithium (as at the Tantalite Valleymine [3]).

The Late Proterozoic Damara Sequenceand Gariep Complex, and related plutonicrocks, evolved during successive stages ofintracontinental rifting, continental rupture,spreading, subduction and continental col-lision between 1,000 and 460 Ma. Theyform part of the Pan-African orogenic beltsthat surround and dissect the African conti-

nent. A great number of mineral depositsand mineralisation styles are associated witheach of these stages, while pre-Damarabasement inliers, composed mainly of high-grade metamorphic rocks, are known tocontain gold and base metal mineralisation.

The Damara Orogen comprises twocoastal belts, divided into southern andnorthern arms, and a northeast-trendingintracontinental branch that extends fromthe Atlantic Coast through Namibia intoBotswana. The southernmost rift of theintracontinental branch, which can be tracedfrom west of Rehoboth to the Witvlei area,is filled with terrigenous sediments (NosibGroup) including meta-evaporites withanomalously high sodium and boron ofpossible exhalative origin.

Horizons containing low-grade copperhave been found within this unit. Anoma-lous gold values are recorded locally, anderratic gold mineralisation is present inyounger quartz veins.

Thick peralkaline pyroclastics were de-posited in the northern rift, which can betraced from Cape Cross to south ofGrootfontein. Associated rift margin alka-line to peralkaline intrusives and carbonatitedyke swarms have potential for tin, rareearth element (REE) and fluorite minerali-sation, while volcanogenic copper sulphidesoccur in lucititic lavas southwest of

Grootfontein (the Askevold deposit). Fur-ther potential for VMS deposits may existtowards the east below Kalahari sand cover.

Passive continental margins formed oneither side of the southern rift, as it devel-oped into a Southern Zone ocean, and alongthe north-south trending proto-Atlanticocean. Both volcano-exhalative andSEDEX deposits formed along these evolv-ing continental margins as well as duringsynsedimentary faulting along the deepen-ing northern rift. They are hosted inmetasedimentary rocks of the SwakopGroup.

The lead-zinc-silver-copper-barite dep-osits of Rosh Pinah [4] (14 Mt mined to dateat 8 % Zn and 2 % Pb, with substantial re-serves), Skorpion [5] (some 8.3 Mt at 10.9% Zn) and Tsongoari [6] (barite layers upto 10 m thick) as well as banded iron for-mations in the vicinity of Wind-hoek(Tsatsagas, 4.5 Mt at 54 % Fe-oxide) areexamples for volcano-exhalative occur-rences probably associated with the cessa-tion of volcanism.

Cupriferous and pyritic volcanogenicmassive sulphides occur along the north-ern margin of the northern rift near theSummas Mountains. The northern rift con-tains up to 16 km of metasediments, andcontinuous synsedimentary faulting alongits southern margin, the Omaruru Linea-ment, indicates potential for major SEDEXdeposits.

Known deposits along the OmaruruLineament are Namib Lead [7] (lead-zinc-silver) and Joumbira [8] (lead-zinc-copper).Exhalative tourmalinites are present inschists of the northern rift at Ondundu [9]and in association with copper northwestof Omaruru.

Spreading culminated in the formationof a mid-oceanic ridge in the Southern Zoneocean (Matchless Amphibolite Belt) whichhosts several Besshi-type volcanogenicmassive cupriferous pyrite deposits atOngombo [10], Otjihase [11], Matchless[12], Gorob and Hope [13], as well as sev-eral smaller occurrences. Finally subductionoccurred, leading to closure of the South-ern Zone and proto-Atlantic oceans.

More than 200 plutons of granite (96%) and minor diorite intruded the pre-Damara basement and Damara Sequenceduring subduction and continental collision.Rare metal pegmatites were em-placed be-tween 550 and 460 Ma.

Lithium-beryllium- and semi-preciousstone-bearing pegmatites occur mainly in

BASE METAL PROSPECTIVITY

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the Karibib-Walvis Bay-Omaruru area,while tin pegmatites are concentrated inthree northeast-trending belts (Uis mine[14], about 60 Mt, 0.13 % Sn), 80 to 185km north of the subduction zone. A belt ofpost-tectonic tin and tin-tungsten lode de-posits occurs still farther north between thedefunct Brandberg West mine [15] and theGoantagab prospect [16], while post-tec-tonic uraniferous granites (Rössing mine[17] and several smaller occurrences) arepresent between 20 and 60 km to the northof the subduction zone. Scheelite skarns aredeveloped locally in association with gra-nitic intrusions.

Various post-tectonic hydrothermal de-posits formed in the central part of theDamara Orogen. Lode gold is hosted inbasement gneisses, the Nosib Group arkosesand the Swakop Group marbles; in the lat-ter case garnet-pyroxene-biotite-vesuvianiteskarns developed adjacent to the quartzveins (as at the Navachab gold mine [18],some 10 Mt, 2.2 g/t Au). The geologicalsetting of this area warrants further explo-ration for Ernest Henry-type copper-golddeposits.

Quartz veins in biotite schists of theupper Swakop Group carry copper and mo-

lybdenum at Onganja [19] and gold atOndundu [9]. At the defunct Khan mine[20] post-tectonic, pegmatitic pyroxene-hornblende-K-feldspar-quartz pods containup to 6 % copper and may be related toevaporites in the Nosib Group or to high-temperature, dolomite-rich fluids.Syntectonic, Alpine-type serpentinites oc-cur along the intensely deformed southern

margin of the Damara Orogen.The extensive and thick carbonates of

the Otavi Group in the northern part of theDamara Orogen form excellent targets forkarst-related MVT-type lead-zinc minerali-sation. Several deposits have already been

Scanning a truck load of uranium ore forgrade at Rössing

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GOLD OPPORTUNITIES

Page 12: Mining journal

(Berg Aukas [21], Abenab [22]). Thisregion is also the type-locality for Tsumeb-type polymetallic mineralisation (Tsumeb[23], Khusib Springs [24] and Kombat[25]). In the same area, the Tschudi cop-per-silver prospect [26] (7 Mt, 1.6% Cu)occurs in arkoses of the upper Damara Se-quence and can probably be related to red-bed type mineralisation.

During subduction, the Nama forelandbasin formed to the south of the DamaraOrogen on a major peneplain. The basalquartzite of the Nama Group is a target forunconformity uranium in the region east andsoutheast of Aus. In this same area, deepintra-Nama erosion of flat-lying limestonessuggests palaeokarsting and hence poten-tial for MVT lead-zinc deposits.

Anorogenic ring complexes emplacedat 500 Ma along the northeast-trendingKuboos-Bremen line in southern Namibiaconsist of alkali granite, syenite, nephelinesyenite and carbonatite. Apart from knownlead, zinc, molybdenum, silver, fluorite,apatite and zircon mineralisation, there ispotential for tin and REE.

Karoo sediments of Carboniferous toJurassic age that extend over parts of north-western and southern Namibia are cappedby extensive basalt flows and are heavilyintruded by dolerite sills and dykes. Permiancoal occurs in the Aranos Basin, in the

Waterberg area, at the mouth of the HuabRiver on the northwestern coast and in theOvambo Basin.

The Aranos deposit [27] has recoverablereserves of 300 Mt of steam coal. The HuabRiver deposit is a 10 m-thick layer of an-thracite with 4 % volatiles at a depth of 700m. All other deposits are very thin and er-ratic, with high ash contents. In the EngoValley of northwestern Namibia, anunconformity uranium deposit of possibleTertiary age occurs in sandstones thatinterfinger with black shales along the edgeof a Karoo glacial valley.

Late to post-Karoo anorogenic ringcomplexes, consisting mainly of alkali gran-ite, syenite, foyaite, gabbro, pyroxenite andcarbonatite, are present in three northeast-trending belts. Of these only the OkorusuComplex [28] is currently mined forfluorite, but mineralisation is known frommany other places, including REE, tung-sten, copper, apatite, iron and semi-preciousstones.

An investigation of mid-Cretaceouskimberlites in central southern and north-eastern Namibia indicates that they are bar-ren or subeconomic, and basement modelages are only about 2,000 Ma. However, ifindicated Archaean model ages for the base-ment north of the Damara Orogen are veri-fied, this whole region would have poten-tial for diamondiferous kimberlites. In ad-dition, recent geophysical data give new in-dications of the western extent of the Kala-hari Craton, and might therefore enhancethe kimberlite diamond potential of north-ern Namibia.

The western part of the country is cov-ered by up to 200 m- thick aolian andfluviatile sediments of the Namib Desert.Economically these are the most importanthost lithologies in Namibia, as they containthe extensive coastal and offshore alluvialdiamond fields.

Diamonds occur along most of theNamibian coast but economic interest cent-res at present upon the area between theOrange River and L¨deritz [29]. The dia-monds occur in up to six raised beaches,and on the continental shelf. Some 1.5 Mctwere produced in 1996, with about one-thirdde-rived from marine concessions [30].

Mining of placer deposits modified bydeflation processes is taking place atChameis, in the Bogenfels-Pomona area,and at Elizabeth Bay. Raised mid-Tertiaryfluviatile gravels occur sporadically alongthe banks of the Orange River and are mined

at Auchas [31].The greatest potential for oil and natu-

ral gas appears to be offshore. Four sedi-mentary basins containing between 4 and 7km of sediment are currently being investi-gated by several international companies.

Recoverable dry gas (96 % methane)was intersected in Lower Cretaceous aeoliansandstones at a depth of 4.2 km in the Kuduwells [32], west of Oranjemund. A three-dimensional seis-mic survey of the area in-dicates that gas reserves could be as largeas 10 trillion cubic feet.

A review of the comprehensive regionalgeophysical data has provided a better geo-logical understanding of the country. In thiscontext, the identification of the bedrockgeology beneath the non-magnetic KalahariSequence has been of particular importance,as it allows extrapolation of geophysicalcharacteristics between areas of known min-eralisation and new prospective areas.

In addition, the data reveal the continu-ation of the Matchless Belt to the east,The De Wet shaft at the now-defunct

Tsumeb mine, which was worked for 95years

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DIAMONDS AND HYDROCARBONS

Page 13: Mining journal

Structures in the Damara Belt,one ofNamibia's most prospective areas

and the western edge of the Kala-hari Craton and its relationship to thesurrounding mobile belt, as well as anumber of circular anomalies related toanorogenic complexes within theDamara Sequence. High-resolutionaeromagnetic surveys currently beingflown and processed will further add tothis understanding and boost Namibia'sprospects for future significant mineraldiscoveries.

Broadening Namibia's Resource BaseThe Haib and Skorpion prospects in the south are two of Namibia’s most promising

deposits, and serve to highlight the untapped potential of the country’s mineral resources.Both deposits are currently subject to detailed feasibility studies with the aim of diversify-ing and expanding Namibia’s mineral sector.

Haib was previously worked for small quantities of high-grade copper ore at the turnof the century. Hosted within rocks of the Namaqua Metamorphic Complex, it is a large-scale quartz-feldspar porphyry copper deposit containing a full range of minerals associ-ated with hydrothermal alteration, including low-grade gold and molybdenum. Low-gradenear-surface oxide ores represent an additional resource.

Mineable ore reserves at Haib are 650 Mt grading 0.37% copper. It is currently beingevaluated by the joint venture partnership of Namibian Copper Mines and Great FitzroyMines NL of Australia, and a bankable feasibility study has recently been completed.When fully operational, the planned open-pit mine will be one of the largest in southernAfrica.

Planned production will be 115,000 t/y of copper, 17,000 oz/y of gold and 880 t ofmolybdenum concentrate. A mine life of at least 25 years is envisaged. During this time,the Haib project will benefit from currently existing infrastructure, such as the main SouthAfrica-Namibia highway, situated only 500 m from the deposit, and established powerlinesguaranteeing adequate electricity supply, as well as the town of Noordoewer, a short tenminutes’ drive away, as a source of labour. A permanent water supply, essential to miningactivities, is provided by the nearby Orange River.

Capital costs for the project are estimated at US$600 million and are expected to berecovered within the first seven years of operation. Completion of construction and startof production are scheduled for the beginning of 1999, with production costs of less thanUS$0.50/lb of copper. The much smaller Lorelei porphyry copper deposit nearby is in-dicative of other promising targets that have been identified in southern Namibia.

The Skorpion zinc-oxide deposit is located some 20 km north of Rosh Pinah and 80km northeast of Oranjemund. Lying approximately 10 m below surface, the deposit is upto 100 m thick and appears to be the oxidation product of volcanogenic massive sul-phides. Hosted in the Gariep Complex, the original mineralisation is probably similar toRosh Pinah and illustrates the high prospectivity of this area.

Skorpion is estimated to have reserves of 8.3 Mt grading 10.9% Zn. A favourablewaste-to-ore stripping ratio of 1:1.85 has been calculated for open-pit mining, and ex-pected production will be at a rate of 85,000 t/month of ore, amounting to some 100,000t/y of zinc metal.

London-based Reunion Mining is currently evaluating the deposit, which was discov-ered by Anglo-American Corporation (AAC) in the early 1980s. In a four-year agreementwith Erongo Mining and Exploration, a subsidiary of AAC, Reunion is entitled to earn a60% interest by spending US$1 million on metallurgical testwork and feasibility studies.Studies to date have confirmed that the highly oxidised ore is amenable to leaching andsolvent extraction for electrowinning.

A fully bankable feasibility study is due for completion by mid-1998. This involves atwo-year development period with production starting in 2000, at a capital cost of US$155million.

A Key EconomicSector

Mining has played a vital role in the de-velopment of the Namibian economy. Thetraditional large-scale exploitation of basemetals and diamonds has had a profoundeffect on the national budget, and acts as asolid base on which to expand and diver-sify the mineral industry. Namibia's oper-ating mines highlight the wide variety ofmetallogenic provinces within the countryand point the way to future discoveries.Most operations have resulted from groundmapping surveys following distinct surfaceindications. Some mines date back to earlyexploration at the turn of the century.

DiamondsNamibia hosts alluvial deposits of some

of the finest gemstone-quality diamonds inthe world. Diamond mining dates from theaccidental discovery of a diamond by a rail-way worker at Kolmanskop station nearLüderitz in 1908, which was followed by adiamond rush. By 1913 the Namibian dia-mond fields accounted for 20% of worldproduction.

In 1920, the various companies holdingnumerous claims were amalgamated by DeBeers into Consolidated Diamond Mines(CDM), a company which was to form themainstay of the Namibian diamond indus-try for many years. In 1994, CDM enteredinto a joint venture with the Namibian Gov-ernment to form Namdeb Diamond Corpo-ration Ltd.

While the deposits in the Lüderitz areasoon became depleted, the beach depositsnorth of the Orange River mouth were dis-covered in 1928 and have supported large-scale mining since 1935. Starting as earlyas 1958, exploration of the seabed gainedincreasing importance in the 1980s, andtoday approximately one-third of theNamibian diamond production is derivedfrom offshore deposits.

Namibia's diamonds originate from dia-mond-bearing kimberlites in central south-ern Africa, whose erosional products weretransported by the Orange and other west-ward-flowing rivers to the Atlantic Ocean.This transport process proved to be highlyselective, and only the highest-qualitystones were able to survive the long jour-ney, thereby accounting for the extraordi-narily high share of 96% of gemstone-qual-ity diamonds in the Namibian deposits.

DEVELOPMENT PROJECTS

Page 14: Mining journal

Some diamonds were concentrated in theterraces of the proto-Orange, while otherswere transported together with gravel intothe submarine delta of the Orange River,forming an intermediate depository. Thesesediments were re-worked during severalCainozoic marine transgressions and regres-sions before finally being preserved in raiseddiamondiferous beaches.

Additional reworking of the exposedbeaches by wind action led to the formationof aeolian placer and deflation deposits.Diamonds have been found all along theNamibian coast, but the strip betweenOranjemund and Lüderitz remains the mainproduction area.

Mining of the beach deposits involvesexposure of the diamondiferous gravel byoverburden stripping using earth-movingmachines, which include two large bucket-wheel excavators. The overburden sand isused to construct protective sea-walls, shift-ing the beach high-water mark up to 200 mseawards and exposing gravels up to 20 mbelow sea level. The ore is excavated byhydraulic excavators, and industrial vacuummachines are used for the final “clean-up”process. After treatment in the crushingplant, a concentrate is sent to the central re-covery plant and sorthouse.

A deflation deposit is mined at ElizabethBay, south of Lüderitz. Mining is carried

Above: Sea-walls give accessto offshore diamond-bearinggravels Left: Amongst its equipmentfleet, CDM uses two bucket-wheel excavators foroverburden removal

Backed by a variety of geological maps,digital geological and remotely sensed dataand a better understanding of mineralisa-tion controls on its varied deposit types,Namibia offers today’s explorationist ex-cellent prospectivity. Some US$90 millionhave been spent on exploration in Namibiaduring the last six years.

Despite all of this activity, Namibia’senormous mineral potential remains, in in-ternational terms, underexplored. Nonethe-less, the increase in exploration expendi-ture recorded since 1994 indicates that thissituation is changing as companies recog-nise the excellent prospects and favourableconditions that Namibia offers.

Expenditure more than doubled from1994 to 1995 and grew by a further 24% inthe following year to about N$118 million(about US$26 million). Further increasesare expected as more ground becomesavailable with the freeing of mining claimsas a direct result of the new legislation.

Nevertheless, expenditure in 1996 rep-

resented only about 6% of explorationmoney spent in Africa, which itself ac-counted for only about 12% of global ex-ploration expenditure. With many compa-nies now focusing their activities on Afri-ca’s untapped potential, Namibia can ex-pect to receive a greater share of the globalexploration budget, estimated to be overUS$4.5 billion, in 1997.

Recent statistics indicate that around 375exclusive prospecting licences are currentlyvalid. Of these, some 32% are for base met-als, 26% for precious metals and 34% fordiamonds (of these 80% are for offshoreexploration), with the remainder for raremetals, semi-precious stones, industrialminerals and dimension stone.

Compared to global averages of 60% forprecious metals, 30% for base metals, and10% for others, including diamonds,Namibian exploration is strongly biasedtowards diamonds and, to a lesser extent,towards base metals. This is a reflection ofthe historical perception of Namibia’s min-

ing sector which undoubtedly has excellentdiamond and base metal potential. How-ever, its considerable opportunities for goldand other mineralisation are not currentlyreceiving their due attention.

Over 60 companies are now exploringin Namibia, and there has been a notice-able increase in international interest. Be-fore independence, South African firmsdominated the scene, but since 1990 an in-creasing number of international companieshave recognised the country's potential.

Several major international companies,including MIM and BHP, as well as SouthAfrican firms whose interests are now in-ternational (such as Avmin), now hold ex-ploration licences. Junior companies suchas Caledonia, Great Fitzroy Mines and Ka-lahari Gold and Copper are also activelyinvolved in exploration, adding their effortsto those of established Namibian compa-nies like Gold Fields Namibia, Erongo Min-ing and Exploration, Tsumeb Corp.,Namdeb and Namco.

Putting Prospectivity into PerspectiveDIAMOND PRODUCTION

Page 15: Mining journal

at Auchas. The concentrates of bothmines are forwarded to a central recoveryplant for final treatment.

While near-shore shallow mining opera-tions are under way, pioneering work iscurrently being carried out to recover dia-monds from the seabed offshore Namibia.The offshore placer deposit is now knownto extend into water depths that have hith-erto prohibited mining operations.

Nevertheless, companies active inNamibian waters, spearheaded by De BeersMarine, have adopted a fresh approach, andtoday a fleet of purpose-built mining ves-sels recovers diamonds from the seabed inwater depths of up to 200 m. These figures,both for the proportion of marine produc-tion and for water depths, are set to increasein the future.

Gem-quality stones make up the greatmajority of Namibia’s diamond output

Namibian Mineral Production, 1996ytidommoC tinU ytitnauQ

)%99retsilb(reppoC t 603,81

)denifer(daeL t 614,42

)etartnecnoc(cniZ t 378,53

muimdaC t 9

)retsilbnidnaerod(dloG gk 771,2

)retsilbni(revliS gk 34

)etartnecnoc(etiryP t 601,38

sdnomaiD tc 754,684,1

)8O3U(muinarU ts 881,3

tlaS t 068,873

)edargdica(rapsroulF t 582,23

eroesenagnaM t 746,29

)denifer(edixoirtcinesrA t 505,1

seromuihtiL t 189,1

out with mechanical excavators.Diamondiferous gravels of the proto-Or-ange River are recovered and treated

Base MetalsBase metal mining has a long tradition

in Namibia and started on a large scale whencopper was first mined at the Matchlessmine, west of Windhoek, in 1855. To thisday, copper remains an important commod-ity, followed by lead, zinc and manganese.In addition, there are known deposits ofiron, tin, tantalite, tungsten and vanadium,some of which have been mined in the past.

Gold Fields Namibia, through its sub-sidiary Tsumeb Corporation (TCL), ownsand operates several base metal mines andthe smelter at Tsumeb. The Kombat mine,some 51 km from Tsumeb, produces around400,000 t/y grading 3.13% copper, 0.93%lead and 22 g/t silver. A major surface andunderground drilling programme is under

way to prove additional ore reserves.The Tsumeb-type Khusib Springs mine

between Tsumeb and Grootfontein wasopened by the company during 1996, whiledrilling at the nearby Tschudi prospect hasreached an advanced stage and feasibilitystudies are under way. Besshi-typecupriferous pyrite bodies are mined by TCLat Otjihase, 20 km northeast of Windhoek.Current ore production is in the order of500,000 t/y grading 2% copper, 16 g/t sil-ver, 0.35 g/t gold and 16% sulphur as py-rite. Pyrite is shipped to Rössing Uraniumfor acid production.

Namibia's famous Tsumeb mine wasalso operated by TCL and, until its closurein 1996, was the major source of feed forthe Tsumeb smelter. The polymetallic de-posit, world-renowned for its variety of sec-ondary minerals, opened in 1901 and in the95 years of its lifetime produced over 29Mt of ore, grading about 5% copper, 15%

lead, 150 g/t silver and up to 2% zinc. An-timony, arsenic, cadmium and germaniumwere recovered as by-products.

The Rosh Pinah mine, located in thesouth of the country, some 20 km north ofthe Orange River, is a major lead and zincproducer operated by Imcor Tin. The oregrades 7% zinc and 2% lead, and some70,000 t of zinc concentrate and approxi-mately 28,000 t of lead concentrate are pro-duced annually. The lead concentrate is toll-

This Supplement has been prepared by Min-ing Journal Research Services

WG Prast PhD, CEngMichael Forrest BScMichael Jones BSc, MBASimon Walker, MCSM, CEng (Consultant)

Published by:THE MINING JOURNAL LTD60 Worship Street, London EC2A 2HDTel: (+44 171) 216 6060Fax: (+44 171) 216 6050

Subscription Dept:PO Box 10, Edenbridge, Kent TN8 5NE,UKTel: (+44 1732) 864333Fax: (+44 1732) 865747E-mail: [email protected]://www.mining-journal.com/mj/Mining Journal is available only as part ofa subscription with Mining Magazine andthe Annual Review.

© Mining Journal 1997

METAL MINING

Page 16: Mining journal

smelted at Tsumeb by TCL, while thezinc concentrate is processed in South Af-rica.

Manganese is produced at a rate ofaround 90,000 t/y from the Otjosondumine,operated by Purity Manganese. The com-mission of a ferro-manganese plant to proc-ess ore from this mine is planned for thenear future.

UraniumNamibia is one of the world's principal

uranium producers, and output of uraniumfrom the Rössing mine currently accountsfor an estimated US$115 million of Na-mibia's export earnings. Rössing is one ofthe world's largest open-pit uranium mines.Operated by Rössing Uranium Ltd, a sub-sidiary of Rio Tinto, it is located some 65km inland from the coastal town ofSwakopmund.

Irregular uranium mineralisation ishosted by alaskitic granites and requiresselective mining. The mine production isassessed by a unique scanning system thatmonitors the ore grade in loaded mine truckswith sufficient accuracy to establish cut-offgrades.

The mine is currently undergoing amajor capital investment programme. Re-serves at Rössing are substantial and long-term plans are in place for production until

2022. Mining is carried out at a rate of43,000 t/d with an average grade of 0.035%uranium.

GoldNamibia has a history of gold produc-

tion and numerous gold deposits occurthroughout the country. Nevertheless, to-day's gold production amounts to only some2,000 kg/y, originating from the Navachabgold mine near Karibib.

The Navachab gold mine is a joint ven-ture operation between Erongo Mining andExploration, Inmet Corporation of Canadaand Randgold and Exploration. The minehas sufficient identified reserves for produc-tion until 2004 and exploration drilling toidentify additional reserves beneath theopen-pit floor is ongoing.

Other MineralsNamibian industrial min-eral production

comprises a range of commodities includ-ing fluorite, lithium minerals, salt,wollastonite, carbonate fillers and dimen-sion stone. Namibia is one of Africa's larg-est salt producers, with two solar evapora-tion pan complexes at Walvis Bay andSwakopmund. An acid-grade fluorite con-centrate is produced at the Okorusu mine,located to the northeast of Otjiwarongo andrecently acquired by Solvay. Annual pro-

duction currently amounts to some 32,000t, and the Government has recently ap-proved a US$1.4 million loan for develop-ment to improve the waste stripping ratioand thereby production.

Namibia's dimension stone productioncomprises marble, granite, dolerite andsodalite. Sodalite is recovered in the farnorth of the country at Swaartbooisdrif,while the other materials are mainly derivedfrom the central parts of Namibia. A cut-ting and polishing plant has been establishedat Karibib.

Semi-precious stone production takesplace mainly on a small scale. The portfo-lio includes tourmaline, aquamarine,heliodore, morganite, mandarine garnet,topaz, rose quartz and blue lace agate.

Cutting dimension stone at the Karibibprocessing plant. Namibia exports blocksof granite, marble, dolerite and sodalite

Namibia has one of the oldest miningindustries in Africa, yet its mineral poten-tial remains to be fully developed with mod-ern exploration techniques. Namibia's min-ing industry has played a vital role in thedevelopment of the country. Many incen-tives have recently been put in place to makeNamibia one of the most attractive regionsin Africa to carry out exploration and todevelop new mines by a Government keento diversify further the mining sector andto attract new investment.

For further information on investing inNamibia's mining sector, please contact thefollowing institutions.

Ministry of Mines and EnergyPermanent SecretaryMr Siseho SimasikuPrivate Bag 13297WindhoekTel: +264 61 284 8111Fax: +264 61 238 632

Directorate MiningDirectorMs Inge ZaamwaniPrivate Bag 13297WindhoekTel: +264 61 284 8321Fax: +264 61 238 643

Directorate MiningMining CommissionerMr G McGregorPrivate Bag 13297WindhoekTel: +264 61 284 8111Fax: +264 61 238 632

Geological Survey of NamibiaDirectorDr G I C SchneiderPO Box 21681 Aviation RoadWindhoekTel: +264 61 208 5111Fax: +264 61 249 144

NAMCORManaging DirectorMr Joe MazeingoPrivate Bag 13196WindhoekTel: +264 61 221 699Fax: +264 61 221 785

Chamber of Mines of NamibiaGeneral ManagerMr John RogersPO Box 2895WindhoekTel: +264 61 237 925Fax: +264 61 222 638

Namibia Investment CentreExecutive DirectorPrivate Bag 13340WindhoekTel: +264 61 283 7335Fax: +264 61 220 278

Contact names and addresses

ESSENTIAL CONTACTS