{"id":443291,"date":"2011-06-17T13:30:38","date_gmt":"2011-06-17T13:30:38","guid":{"rendered":"http:\/\/www.ghanamma.net\/2011\/06\/17\/the-nation-loses-out\/"},"modified":"2011-06-17T13:30:38","modified_gmt":"2011-06-17T13:30:38","slug":"the-nation-loses-out","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2011\/06\/17\/the-nation-loses-out\/","title":{"rendered":"The Nation Loses Out"},"content":{"rendered":"
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\"New<\/a><\/p>\n

Toivo Ndjebela<\/p>\n

16 June 2011<\/p>\n

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Windhoek \u2014 Although the mining sector exported minerals worth a combined N$14 billion in 2010, the sector only paid slightly over 10 percent or N$1.6 billion to the State in taxes and royalties.<\/p>\n

There is very little value-addition to the minerals such as copper, gold, diamonds and uranium that mining firms extract from Namibian mines and export to other countries.<\/p>\n

Slightly over two-thirds or N$1.1 billion of the total sum came from Namdeb alone, leaving other players in the sector to share the remaining N$500 million, directly contributed to State coffers.<\/p>\n

The N$1.6 million that government received represents a mere 11 percent of the total revenue generated by 13 mining companies that operated locally last year, the annual review released by the Chamber of Mines of Namibia reveals.<\/p>\n

Indications are that at least four mining companies that were in operation in 2010 either did not pay corporate taxes or royalties or, in the worst-case scenario, both.<\/p>\n

British-controlled Rossing Uranium, which raked in revenue worth N$3.6 billion during the period under review, did not pay any corporate tax in 2010.<\/p>\n

The firm made losses of N$43 million but was able to pay N$213.6 million in royalties, the review indicates.<\/p>\n

French-owned nuclear giant Areva Resources Namibia, which is busy developing the Trekkopje mine near Swakopmund, made profits of N$116 last year, but did not pay any corporate tax or royalty to government.<\/p>\n

Langer Heinrich, a wholly Australian-owned company, which exported 3.7 million pounds of uranium in 2010, did not pay corporate taxes, although it paid royalties amounting to N$32 million.<\/p>\n

The companies that paid both corporate taxes and royalties are Namdeb, which is 50 percent Namibian owned, South African-controlled Navachab gold mine and Okorusu Fluorspar, whose parent company, Solvay, is headquartered in Brussels, Belgium.<\/p>\n

Others are Rosh Pinah Zinc Corporation whose majority shareholder is South Africa’s Exxaro, British-owned Skorpion Mining Company and The Salt Company.<\/p>\n

President Hifikepunye Pohamba, during his recent State of the Nation address, said 2010 was primarily a year of recovery after the devastating global economic crisis, an argument that many local mining companies have also advanced.<\/p>\n

Government’s minimal returns from the mining industry have been a source of major concern for a long time, but this could be a thing of the past if the new Cabinet policy on strategic minerals is implemented.<\/p>\n

Cabinet has announced that key minerals such as diamond, copper, zinc, gold, uranium and coal would soon be reserved for State-owned company Epangelo Mining so that Namibians benefit meaningfully from the country’s abundant mineral riches.<\/p>\n

Government has said this policy would only apply to new discoveries, therefore current right holders would not be affected by the new move.<\/p>\n

The Minister of Finance, Saara Kuugongelwa-Amadhila, stated recently that she would seek taxes from mining windfalls, a move by treasury to boost state coffers.<\/p>\n

Kuugongelwa-Amadhila has already garnered the support of her Mines and Energy counterpart Isak Katali, who said the move would benefit Namibia.<\/p>\n

Supporting the finance minister’s move, Katali recently told New Era: “What is currently happening is that the mining companies only pay the royalties and taxes when everything is fine in the industry.”<\/p>\n

He continued: “When there are problems, they (mining companies) approach government and say they cannot pay or cannot pay at that specific time. But when they start making profit, they keep quiet.”<\/p>\n

<\/p>\n

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\nThe Nation Loses Out<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Toivo Ndjebela 16 June 2011 Windhoek \u2014 Although the mining sector exported minerals worth a combined N$14 billion in 2010, the sector only paid slightly over 10 percent or N$1.6 billion to the State in taxes and royalties. There is very little value-addition to the minerals such as copper, gold, diamonds and uranium that mining firms extract from Namibian mines and export to other countries<\/p>\n","protected":false},"author":0,"featured_media":443292,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":{"0":"post-443291","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-sports"},"yoast_head":"\nThe Nation Loses Out - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2011\/06\/17\/the-nation-loses-out\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"The Nation Loses Out - Ghanamma.com\" \/>\n<meta name=\"twitter:description\" content=\"Toivo Ndjebela 16 June 2011 Windhoek \u2014 Although the mining sector exported minerals worth a combined N$14 billion in 2010, the sector only paid slightly over 10 percent or N$1.6 billion to the State in taxes and royalties. 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