Namibia Eyes State of State Owners

Namibia has a growing interest in minority interests in mining and petroleum production companies, as the government considers increasing concerns about local ownership of valuable resources.

We are making a case that local ownership must begin with the state, which holds ownership of our natural resources, Mines and Energy Minister Tom Alweendo said on Monday. The proposed state ownership should take the form where the state owns a minimum equity percentage in all mining companies and petroleum production, for which it does not have to pay.

Namibia is one of Africa's biggest producers of diamonds and the largest producer of uranium. In February, Impact Oil Gas Ltd. said it plans to launch a multiwell drilling program in the nation with TotalEnergies SE, which discovered oil at sea last year.

Paladin Energy Ltd., an Australian energy company, plunged to its lowest level since August 2021. Bloomberg calculated that Namibia receives all of its revenue from the company.

The arid southwest African nation joins others such as Zambia, Brazil, Chile, Indonesia, Philippines, Peru and Zimbabwe that are pushing for more value from their minerals or considering increased state intervention, partly due to higher commodity prices.

The nation is also considering a minerals exploration fund, which could be financed by a portion of royalties paid by mining and petroleum companies to the state, Alweendo said. The fund will be used to support local entrepreneurs who want to invest in the mining industry, he said.

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