Ministry of Mines and Energy was established in 1990 to act as the custodian of Namibia’s mineral, energy and other land-based resources. Responsibilities entrusted to the ministry include promoting and regulating the development and utilisation of these resources through the creation of suitable legislative and institutional framework. By constant monitoring of the mineral, land-use, and energy sectors, and interaction with all relevant stakeholders the ministry contributes to the sustainable economic and social development of Namibia for the benefit of all its people.
Prior to the establishment of the ministry in 1990, the mining sector in Namibia was administered by South Africa. During those days, informal mining sector was almost non-existent and local beneficiation was limited. Foreign companies exploited our mineral resources, and local expertise was not developed. Apart from the then existing power schemes, activities in the energy sector focussed on meeting the country’s demands through imports. Communal areas were neglected in development initiatives, no land-use planning exercises were conducted, and earth science aspects and environmental geology were not considered in any development schemes.
Soon after Namibia became independent, the ministry embarked upon a number of schemes to redress this situation in accordance with the following objectives:
1.
to administer the relevant legislation and to exercise control
over mineral energy, and other land-based resources whose
ownership is vested in the State of Namibia,
2.
to monitor constantly the performance of the existing legislation
and to enact any further legislation deemed necessary, and
3.
to monitor and control developments having an impact on
geological resources.
To promote
investment by creating an enabling environment conducive to the
optimal utilisation of Namibia’s mineral, energy and other
land-based resources.
1.
to maintain and expand the contribution of formal and informal
mineral and energy sectors to the economy of Namibia,
2.
to maintain and promote regional and international co-operation
in the mineral and energy sectors,
3.
to ensure sustainable development of all earth-based resources,
and
4.
to develop strategies for optimised land-use planning.
Environmental Protection
1.
to minimise the impact of the exploitation of Namibia’s
mineral, energy and other land-based resources on the environment
by ensuring development in a responsible way and in compliance
with the national policy and universally accepted practices and
standards,
2.
to assess the impact of previous mining and development
activities on the environment through baseline studies and to
develop strategies to manage this impact, and
3.
to develop multidisciplinary and integrated land-use planning,
working closely with other ministries.
To research and
disseminate relevant quality scientific data to address national
issues related to resources, environment and hazards in earth
science and energy-related matters.
To provide value
for money and customer-oriented services to all stakeholders.
The ministry
comprises four directorates, namely the Directorate of Mining,
the Directorate of the Geological Survey of Namibia, the
Directorate of Energy, and the Directorate of Administration and
Finance. The ministry is also responsible for the operations of
the Diamond Board, the Minerals Board, the Minerals Development
Fund Control Board, the National Energy Council, as well as the
parastatals NamPower, and Namcor.
The Directorate
of Mining works through three divisions, viz., the
Division of Mineral Rights, the Division of Mine Safety and
Services, and the Division of Mineral Economics and Marketing,
and is responsible for the efficient development of the mineral
resources of Namibia in a manner that optimises the use of these
non-renewable resources and ensures an equitable return for the
people of Namibia.
The directorate is also responsible for the administration of
mineral legislation, including licensing of all prospecting and
mining activities. It ensures that the highest standards of
health and safety for workers are maintained in the mining
industry. Its other responsibilities include monitoring
prospecting and mining operations, and providing technical advice
to the industry in order to ensure that the country’s
mineral resources are developed and mined in the most efficient
and environmentally-friendly manner.
The directorate, through the Minerals Economics and Marketing
Division, provides marketing advice to mineral producers,
maintains data on local mineral production and sales, and
monitors mineral sales and sales contracts. This division works
closely with the Ministry of Finance on taxation matters and
collection of royalties. It also provides secretariat service to
the Diamond Board of Namibia.
Thus, the
Directorate of Mining’s objectives are as follows:
1.
to ensure that the legal framework is competitive and conducive
to promoting investment,
2.
to ensure that the mining industry is integrated within other
sectors of the economy,
3.
to ensure that mineral resources are exploited in a safe,
responsible and sustainable manner,
4.
to ensure that a vibrant and sustainable small-scale mining
sector is in place, and
5.
to ensure that value for money and customer-oriented services are
rendered in an efficient, timely and comprehensive manner.
The Geological
Survey of Namibia, as a national institution of earth sciences
and mineral resources, is entrusted with the task of enhancing
knowledge and awareness of Namibia’s geological resources.
Through scientific investigation, and application and
dissemination of quality research data, this institution
facilitates search for and assessment of mineral resources,
geological engineering, land-use planning and sustainable
development with due regard to the environment.
The Geological
Survey of Namibia has three divisions, namely Regional
Geoscience, Applied Geoscience, and Geotechnology. The Regional
Geoscience Division covers all aspects of regional mapping,
geophysics, remote sensing, and cartography. The Applied
Geoscience Division deals with the geology of mineral deposits,
geochemistry, environmental geology, and engineering geology. The
Geotechnology Division is responsible for the National Geological
Museum, the National Core Library, the National Earth Science and
Energy Information Centre, and for the publication of the
Geological Survey’s research results.
Thus, within the
overall objectives of the ministry, the Geological Survey of
Namibia has a number of objectives as follows:
1.
to maintain and promote the contribution of the formal and
informal mineral sectors to the economy of Namibia through the
application and dissemination of quality scientific data;
2.
to advise the government in all matters related to the
utilisation of Namibia’s geological resources;
3.
to promote and, to a certain extent, provide education in the
field of the earth sciences;
4.
to enhance the understanding of the geo-environment and its
interaction with life-supporting systems (air, water, mineral
resources, land resources, energy) for the present and future
generations;
5.
to minimise the impact of the utilisation of Namibia’s
geological resources on the environment by proactive and reactive
scientific appraisal of the geological aspects of development;
6.
to initiate and participate in multidisciplinary integrated
land-use planning;
7.
to research and provide relevant quality scientific data to
address national and international issues related to resources,
environment and hazards in the field of earth sciences, and
8.
to maintain and provide regional and international co-operation
in the field of earth sciences.
The Directorate
of Energy is the government agency responsible for the
development of the Namibian energy sector. The directorate
performs regulatory functions, administers the legislative
framework, and promotes investment and social uplifting through
the provision of reliable and affordable energy services to the
citizens. Recognising the importance of energy to the
socio-economic development of Namibia, the directorate has
instituted policy measures to promote accelerated growth of the
energy sector.
The directorate
is composed of three divisions, namely, the Electricity Division,
the Petroleum Exploration and Production Division, and the
Petroleum Downstream Division. The Electricity Division oversees
the electricity industry, manages the national rural
electrification program, and undertakes research on and promotion
of renewable energy resources. The Electricity Division also
co-ordinates important energy development programs with
international co-operating partners. The Petroleum Exploration
and Production Division is responsible for oil and gas
exploration in terms of the Petroleum Exploration and Production
Act. Its main functions are licensing, safety inspection, and
investment promotion. The Petroleum Downstream Division regulates
the supply and distribution of refined petroleum products in the
country in terms of the Petroleum Products and Energy Act.
The
Directorate of Administration and Finance comprises three
divisions. The Finance Division is responsible for revenue and
budget, administration of the Energy Fund, salaries and
expenditures, creditors, and internal audit. The Personnel
Service and Human Resource Development Division maintains
and controls personnel movement and is responsible for
facilitating the training of employees in the ministry. The
Auxiliary Services Division is responsible for the administration
and provision of transport, maintenance, and administration of
cleaning services, procurement, assets management, and office
services. In addition, a new Information Technology
Subdivision has recently been established and entrusted with the
responsibility of maintaining, upgrading and administrating
computer systems within the ministry.
Objectives of
the Directorate of Administration and Finance are therefore as
follows:
1.
co-ordinating the efficient and effective management of logistics
and assets,
2.
providing efficient and effective financial services,
3.
providing administrative support to business groups,
4.
co-ordinating recruitment, development and management of human
resources, and
5.
establishing and maintaining information technology systems.
The Diamond Board
regulates and controls production, evaluation and security of and
trade in diamonds.
The Minerals
Board of Namibia was constituted in 1996 in terms of Section 9 of
the Minerals Act. The board is charged with the responsibility of
advising the Minister of Mines and Energy on general or specific
matters, and making recommendations on policy as well as
reconnaissance, prospecting, mining, and disposal of minerals. It
may also advise the minister on amendments to the application of
the provisions of the act.
Recognising the
importance of inward investment to an industry that is so vital
for the country’s economy, the government had created a
Minerals Development Fund in 1996 to further enhance the package
of assistance available to companies engaged in mineral
exploration and development. The objective of this fund is to
facilitate the diversification of the mining sector by providing
finance, as loans and/or grants, to support private exploration
and development of new deposits. The fund also supports the
development of national geoscience databases, airborne
geophysical surveys, and development of professionally and
technically trained Namibians. The Minerals Development Fund
Control Board administers this fund.
The National
Energy Council is an advisory body to the minister on
energy-related issues. The council comprises professional
representatives from all stakeholders in the energy sector and is
therefore able to bring to bear a wealth of expertise and
experience on critical issues relating to the development of the
energy sector. Another important function of the council is to
co-ordinate the activities of the World Energy Council in
Namibia.
NamPower, the
national electricity utility, is a state-owned company that
resorts under the Ministry of Mines and Energy. NamPower has the
mandate to generate, procure, transmit and distribute
electricity. It works under the direction of the Directorate of
Energy in the provision of rural electrification and the
expansion of the national power grid.
In order to
catalyse development, NamPower remains committed to its objective
of availability, affordability and accessibility of electricity
to at least 80% of all Namibians within the next ten years. Rural
electrification is also an important part of NamPower’s
mandate.
Namcor is the
national oil company involved in the various aspects of oil
business. It is tasked to ensure the optimum exploitation of
Namibia’s petroleum resources, meaningful Namibian
participation in oil business, and facilitating Namibian
participation in petroleum exploration-related businesses. The
Directorate of Energy works with Namcor to help it ensure that it
plays a significant role in the Namibian petroleum industry.
Achievements
Directorate
of Mining
The Directorate of Mining, in consultation with interested
parties, was responsible for initiating the enactment of the
Minerals (Prospecting and Mining) Act of 1992. Certain amendments
to this act are now being considered, and work on amendments has
been initiated. The directorate has also completed the final
draft of the Mine Health and Safety Regulations. This draft is
being circulated to all interested parties for their comments and
recommendations.
In 1995, a
Minerals Ancillary Rights Commission (MARC) was established in
terms of the provisions of the Minerals (Prospecting and Mining)
Act. MARC is responsible for settling disputes between mineral
license holders and landowners in instances where the license
holder is unreasonably prevented from entering private land by
the owner of such land. MARC met for the first time in May 1996
and has, since then, successfully resolved more than 50% of the
cases brought before it.
The Cabinet
had also established an inter-ministerial committee to consider
all mineral license applications and ensure transparency in the
granting of licences. Its terms of reference are reviewed
regularly to keep pace with changing circumstances and its
composition is revised from time to time to incorporate
departments hitherto not represented on it.
As provided
for in Section 49 of the Minerals Act, a model minerals agreement
containing model project-specific terms and conditions was drawn
up in 1996. This model agreement serves as a basis for the
government’s negotiating team and prospective investors to
negotiate agreements for the development of mining projects.
In November
1994, three agreements were signed between the Government of
Namibia and De Beers giving the government a 50% stake in the
former Consolidated Diamond Mines, a say in exploration and
exploitation strategies for precious stones, and some influence
on matters related to the sale of diamonds. Within the framework
of this partnership, a feasibility study to establish a cutting
and polishing factory for Namdeb was completed in 1996. This
study proved that such a factory was viable. A diamond cutting
and polishing factory, the first of its kind in Namibia, has
since been established at Okahandja and was commissioned on 12
August 1998.
In 1993, the
Government of Namibia and the European Union signed an agreement
making some forty million ECU available under the Sysmin scheme
for support to the mining industry. This support programme was
aimed at reversing unfavourable developments in the mining sector
in recent years. Since 1993, some eleven projects have benefited
from loans and/or grants made possible through this scheme. In
1999, proposal for a second Sysmin scheme was submitted to the
European Union for their consideration.
In the light
of the Cabinet decision, the Directorate of Mining also began the
process of reviewing and substantially revising the existing
diamond security legislation to make it comprehensive. The new
draft, submitted to the Cabinet, covers mechanisms for
regulating, monitoring and licensing diamond buyer permits. It is
envisaged that the new bill will be tabled in the National
Assembly in the near future. Work on accompanying regulations is
also almost complete. Radical changes are envisaged in the
regulations to cater for and regulate new circumstances in
Namibia’s diversifying and expanding diamond industry
including new activities, such as, diamond cutting and dealing
activities.
In conjunction
with the Raw Materials Group and the Swedish International
Development Agency, a small miner’s project at the Uis Tin
Mine was developed and commissioned in 1994. Swedish financial
support for this project came to an end in 1997. Since then, the
project has received technical assistance from the Small Minerals
Assistance Centre (SMAC). Some fifty small miners are directly
benefiting from this project. A processing plant was also
commissioned in 1996. SMAC is investigating other sources of tin
and tantalite with a view to upgrading the plant to treat
tantalite ore, which is more valuable than tin.
Since 1990,
increased levels of exploration activities and expenditure by
Australian and Canadian junior companies have been seen. As a
result, some interesting prospects, such as, the Skorpion zinc
deposit, have been identified. Keen interest by major
international mining companies in the geological potential of
Namibia, too, was noted. Interest in the dimension stone industry
has also been encouraging, and the discovery of the Okatjimukuju
marble deposit is testimony to this. Similarly, there has been a
surge of interest in offshore diamond exploration and some 400
exclusive prospecting licenses have been issued so far.
Successful
installation of a computerised titles management system in the
office of the mining commissioner and the assistance of the
Applied Geoscience Division of the Geological Survey have
undoubtedly improved efficiency in the processing of mineral
licences. Consequently, turnaround time for new applications has
improved to a maximum of three months.
1997 and 1998
saw renewed interest in exploration activities in the country
with a total of 121 and 178 new exclusive prospecting and
reconnaissance licences granted. This noticeable increase has
resulted in expenditures in excess of N$97 million and N$124
million on exploration activities in 1997 and 1998 respectively.
The Auchas
mine and its treatment plant were commissioned in 1990. Elizabeth
Bay mine and its treatment plant came on stream in 1991. A mining
license was granted to Namco for offshore diamond production. The
Otjozondu manganese mine came into production in 1994. With the
reintegration of Walvis Bay, the salt mining company increased
Namibia’s production of first class salt for export and
local markets. The Khusib Springs copper mine came into
production in 1996.
Blocks on the
Orange River were made available for diamond exploration in 1994
through a tender process. The Karibib marble and granite tiling
factory was brought on stream in 1996. A new offshore diamond
mining operation was commissioned in January 1998. Offshore
diamond production increased from 11% in 1990 to 39.5% in 1998 of
the total diamond production. Gold production increased from 1.61
tons in 1990 to 1.88 tons in 1998. Non-exclusive prospecting
licences issued increased from 200 in 1990 to 476 in 1998.
Exclusive prospecting licences also increased from 34 in 1990 to
178 in 1998.
A number of
initiatives have been taken to promote investment in mining. The
Mining Investment Forum met in Windhoek in 1993. Officials of the
ministry attended the SADC/EU Mining Investment Forum in Lusaka
in 1994. Today, investors are coming to Namibia as a result of
what they saw and heard at these forums. The Directorate of
Mining was also represented at the Mining Investment Forums held
in Cape Town in 1996 and 1998, and at the Sub-Saharan Minerals
and Oil Conference held in Johannesburg in 1996.
Despite the
availability of only limited funds, the Directorate of Mining has
consciously and actively emphasised the training of its staff in
specialised fields, such as, mining and environment, advanced
mining technology, and mining engineering activities through
short-term courses in institutions in Japan, and in SADC
countries.
In conjunction
with the Geological Survey, the Directorate of Mining has
compiled investment promotion booklets and brochures, such as, Mineral
Investment in Namibia; Namibia: Dimension Stone; and
many others.
Together with
the Geological Survey, the directorate is represented on the
Chamber of Mines’ Prospecting Committee.
Directorate
of the Geological Survey of Namibia
From its humble
beginnings in 1903, when the first government geologist was
appointed in the country, the Geological Survey of Namibia has
grown into a fully fledged national earth science institution,
and has been praised by many customers as one of the finest
geological surveys on the African continent. This is to a large
extent due to extensive developments in the years since
independence.
Restructuring
of the organisation in 1992 provided the Geological Survey of
Namibia with an adequate number of posts for scientists and
technicians for the first time to carry out the huge variety of
tasks entrusted to it. The move in 1994 to a new, tailor-made
premises with adequate office space, laboratories, core-shed,
museum, lecture theatre, and library provided a further boost to
the efficiency of the organisation.
Over the last
ten years, geological mapping and field-based research have
focussed on areas considered to be of importance for mineral
exploration and metallogeny. Studies are undertaken in close
conjunction with field checking and updating of existing maps,
new mapping, and subsequent digital processing of map data for
incorporating into the map database. This database forms the
basis for the compilation of 1:250 000 scale maps using
computer-based GIS digital map processing facilities established
through technical co-operation with the Geological Survey of
Finland. These developments have enabled the Geological Survey of
Namibia for the first time to take full control over its map
production up to the printing stage. The first two digitally
produced maps were printed in 1994 and 1995, and further map
production is continuing using modern digital computer
technology.
Comprehensive
airborne geomagnetic data acquired during the period 1962-1992
have been co-referenced into a single data set in 1995 in
collaboration with the German Federal Institute for Geology and
Natural Resources. Used in conjunction with a specially created
digital terrain model, aero-magnetic data provide an effective
tool in mineral exploration as they not only characterise areas
of known mineralisation according to their magnetic
susceptibility but also identify bedrock beneath thick
non-magnetic sequences. This information is of great importance
as 50% of Namibia is covered by young sediments of the Kalahari
and Namib deserts. With the availability of this information,
prospectors and geologists are now able to obtain a geological
understanding of the rocks underlying these vast areas.
While the
composite aero-magnetic data are an excellent regional tool, the
Geological Survey of Namibia has recognised that a higher
definition is needed for detailed targeting of exploration areas.
Therefore, in 1994, the organisation started a program of
high-resolution airborne magnetic surveys in conjunction with
radiometric measurements to provide distinct signatures of
mineralisation and their host lithologies. To date, nearly one
million line kilometres have been flown covering almost 25% of
the entire country at a cost of about N$40 million. These surveys
are jointly funded by the Government of Namibia and the European
Union through the Sysmin mechanism of the Lomé Convention. Data
are available at reasonable price and income generated is being
recycled into the Mineral Development Fund to finance further
surveys.
As part of the
airborne geophysical surveys, a dynamic test range was
established at Henties Bay. Namibia is now the only country in
Africa offering field radiometric calibration facilities, and the
test range is increasingly being used by airborne geophysical
contractors operating in southern Africa.
During 1990s,
the Geological Survey of Namibia also compiled a nationwide
gravity map based on over 2000 ground stations. All of these data
sets add to the understanding of the country’s complex
geology and mineralisation styles, and, when used together,
provide a powerful exploration tool, making Namibia attractive
for investment in the minerals sector. This is clearly
demonstrated by the fact that at a time when exploration budgets
have been cut worldwide, Namibia has experienced an increase in
exploration expenditure, and the presence in the country of most
major players on the international exploration scene is
noteworthy.
The Tsumeb
Seismic Station has become part of the Global Seismological
Network operated by the Incorporated Research Institutions for
Seismology (IRIS) in co-operation with the United States
Geological Survey. The station has an operational performance of
over 96%, which ranks Tsumeb one of the top IRIS stations
worldwide.
In 1992, the
first volume of a reference book entitled The Mineral
Resources of Namibia was published. It equipped scientists
and investors with the relevant state-of-the-art knowledge in a
handy format for the first time. The Geological Survey’s
NAMDAT computerised database, started in the early 1990s, has
also been of great importance in the promotion of mineral
exploration in the country. NAMDAT contains detailed information
on over 1500 known major and minor mineral occurrences throughout
the country. A mineral map depicting all known mineral
occurrences on a simplified 1:1 000 000 geological map backdrop
was completed in 1998. In 1997, the Geological Survey of Namibia
also started to summarise mineral exploration reports on the
basis of 1:250 000 geological map sheets to provide prospective
investors with comprehensive information on mineral occurrences
in any given area, including level of work done and results
achieved. Improved knowledge and understanding of the geology
coupled with a better interpretation of mineralisation controls
and ore genesis models might lead to a situation where some of
the uneconomic occurrences delineated in the past become of
interest to mineral investors.
Following the
move of the Geological Survey of Namibia to its new premises in
1994, an extensive laboratory infrastructure was commissioned.
The laboratory complex is equipped with modern technology for
sample preparation (splitting, crushing, pulverizing, sieving,
heavy media separation, magnetic separation, Wilfley table,
slabbing, polishing, and preparation of thin and polished
sections) and analysis (X-ray diffraction, optical microscopy,
spectro-photometry, fluid inclusion stage, and ICP-AES). In
addition to these facilities, the laboratory houses two
specialist laboratories, one for testing industrial minerals,
established under a Sysmin project, and the other for engineering
geological tests. One highlight in the development of the
Geological Survey’s laboratory was the acquisition of a
N$1.5 million X-ray fluorescence instrument in 1998.
As a result of
the restructuring of the organisation in 1992, and in line with
the requirements of modern planning for sustainable development,
a subdivision of engineering and environmental geology was
established. This subdivision is responsible for the engineering
laboratory and provides significant support to town planning,
civil and mining engineering, environmental management, pollution
control, and waste management initiatives. In addition, it is
helping with the establishment of a Namibia Construction Research
Institute.
In 1994, a
Geological Museum was also established at the new premises of the
ministry. Its aim is to illustrate, give prominence, and teach
all aspects of the Namibian earth sciences not only to experts
but also to the general public, thereby promoting the knowledge
of Namibia’s rich geological heritage, and appreciation of
its implications for modern day life. Main subjects of the
displays are the minerals of Namibia and the resulting minerals
industry, regional geology and palaeontology. Displays of several
mines illustrate mineral occurrences and their exploitation. A
large section of the museum also deals with Namibia’s rich
palaeontological heritage, and a life replica of Namibia’s
first dinosaur find was put on display in 1999. The museum
receives a constantly growing number of visitors, including
students from Namibian schools.
A large core
archive has also been built. The National Core Archive is a
collection of priceless borehole cores from all over the country
with considerable economic, stratigraphic, engineering, and
scientific significance. At present about 65 000 meters of core
have been stored which represents an enormous wealth of
information on rocks not accessible on surface.
Last but not
least, the National Geological Library operates within the
National Earth Science and Energy Information Centre established
in 1997. It is a reference library with a holding of some 10 000
monographs, 750 titles of periodicals, and 4500 indexed reprints
as well as numerous maps, and aerial and satellite images. The
library also holds copies of reports and papers published by the
staff of the Geological Survey of Namibia.
In 1996, the
Geological Survey of Namibia was invited to join the
International Union of Geological Sciences. Further, the
Geological Survey is involved in a number of international
geological correlation projects as well as SADC projects where it
also holds the chair of the Environmental Subcommittee. It also
participates in the forum of the United Nations Convention on the
Law of the Sea in a technical capacity.
Since 1990,
through a number of bursary schemes, the Geological Survey of
Namibia has trained a number of young Namibians in the field of
earth sciences. Of the nineteen Namibians who completed studies
in the earth sciences since 1990, sixteen took up employment with
the Geological Survey, and one student, who is still completing
his PhD is due to join soon. As a result of this effort, the
Geological Survey’s professional staff, which consisted of
25% Namibians and 75% foreigners at independence, is now made up
of 79% Namibians and only 21% foreigners.
Directorate
of Energy
The directorate
is responsible for the creation of a forward-looking policy and
legislative framework for the development of the various energy
sub-sectors. The Petroleum Products and Energy Act, 1990 and the
Petroleum Exploration and Production Act, 1991 are the two laws
that govern the respective sub-sectors, while the draft
Electricity Bill, once enacted, will provide the legal framework
for the electricity sub-sector. The draft National Energy Fund
Bill will on its enactment give legal personality to the existing
National Energy Fund, and expand its scope of operation. The
directorate also produced the National Energy Policy White
Paper that was approved by Parliament in November 1998. The
White Paper states government policy in the energy sector and
sets out the strategic direction of the sector over the next
fifteen years.
Soon after the
country became independent, the government embarked on a
nationwide rural electrification program. To date more than N$150
million have been invested in the program, and more than 2500
rural centres and 33 000 households have been electrified. More
resources for the program are being mobilised for NamPower from
the National Energy Fund, and through a European Investment Bank
loan subsidy.
Since 1990,
major expansion of the electricity transmission and distribution
network has taken place. A new 132kV line from Ruacana to Okatope
has solved the chronic problem of power outages that afflicted
the northern regions. A second 400kV inter-connector with South
Africa should further expand the availability of electricity.
Planning is at an advanced stage for the new 330kV line from
Omburu sub-station to Walvis Bay to meet the growing power
requirements of the bustling harbour town.
In 1997, the
ministry decided to implement a fuel subsidy to the rural areas
in the form of a new fuel pricing system that bases the price of
fuel on the respective rail depots. Road transport cost from the
depot to the locality is subsidised by the National Energy Fund.
As a result, fuel price in Katima Mulilo decreased by 40 cents
per litre. This subsidy costs the National Energy Fund about N$13
million annually.
The ministry
also convened a National Deregulation Task Force of all
stakeholders to chart the path of deregulating the market.
Outcome of the work of the task force was that phased
deregulation would take place over a five year period, starting
with the infamous RATPLAN. RATPLAN was used in the past by the
oil industry as a tool to keep indigenous Namibians out of the
service station business.
A National
Electricity Master Plan and its supplement, the Rural
Electrification Master Plan, were created as operational guides
for the future development of the Namibian power system. All
present and future electricity projects are undertaken under the
aegis of, and in accordance with, these two planning documents.
The First
Licensing Round of 1993 was successful in attracting a world
class company, Shell Exploration and Production, to further
explore the previously discovered Kudu gas field. This resulted
in several more wells being drilled that increased the known size
of the gas resource from three to about eighteen trillion cubic
feet.
The Directorate
of Energy has an extensive training program. More than
twenty-five Namibians have so far been or are being trained as
electrical engineers under the NORAD program, while PETROFUND has
offered more than seventy bursaries in various academic
disciplines since 1991.
Energy
consumption is an important economic development indicator, and
Namibia has one of the highest per capita energy consumption
figures in Africa. In the SADC region, Namibia’s energy
consumption is third after South Africa and Zimbabwe. In many
African countries, traditional fuels account for 80% of energy
consumption, in Namibia these fuels (wood fuel, dung, etc.)
account for less than 20% of the country’s energy
consumption. Petroleum products account for about 65% of the
Namibia’s energy consumption while the world average is 42%.
Directorate
of Administration and Finance
The
Directorate of Administration and Finance is the heartbeat of the
ministry because of it’s supportive function to all other
directorates.
In 1990, the
ministry broke away from the Government Garage and is responsible
for its own transport fleet. This change enabled the directorate
to render speedy and efficient transport services to the
ministry.
Control over
financial functions has improved drastically over the last seven
years, and no fraud has been experienced over this period. The
appointment of an internal auditor further tightened financial
control. Administration of the budget system and budget planning
has also improved. Consequently, the directorate is able to
provide effective financial services to both the ministry and the
public. Further, regular financial reports to the directorates
enable better budgeting and expenditure control.
The
organisation of a customer-care workshop in 1999 improved our
customer-care service and there has since been considerable
positive feedback from the clients.
Provision of
bursaries to Namibians through NORAD and the National Planning
Commission has resulted in the ministry being able to appoint
fewer and fewer foreigners every year. The ministry has also
benefited from the Capital Project Fund for Capacity Building of
the National Planning Commission and provides more opportunities
for staff members to study outside Namibia on a long-term basis.
The
appointment of the gender focal point in 1998 raised gender
awareness and created more gender sensitivity in the ministry.
The recently
established Information Technology Subdivision will enhance
better flow of information and upgrade the management information
systems. It will also result in speedy rectification of computer
problems and increase computer literacy in the ministry.
Finally, a
strategic planning workshop held in November 1998 equipped the
administration and finance personnel with the necessary skills to
plan better and to provide more efficient and effective support
service to the entire ministry.
NamPower
Electricity
invariably plays an important role in encouraging, promoting, and
facilitating economic growth and improving the quality of life of
citizens. Since 1990, NamPower has determinedly worked towards
positive change to maintain its rightful place in a highly
competitive business environment. Due to increasing demand for
power, NamPower has evaluated all sources of electricity,
including the possibility of further hydroelectric power stations
on the Kunene River and the development of the Kudu gas field.
Before the year 2000, the transmission system will be expanded
with the construction of a new 400kV inter-connector power line
to South Africa.
Joining the
Southern African Power Pool has enabled NamPower to obtain a
better cost structure and readily available power supplies.
NamPower’s competitive prices have also facilitated
investment in Namibia and provided a kick-start to the economy of
the country.
Namcor
Namcor has
promoted the petroleum potential of Namibia in many ways since
the country became independent. All in all three licensing rounds
led to the allocation of eight licenses. While promising source
and reservoir rocks were encountered during exploration in the
license areas, no oil has been found so far. A highlight,
nevertheless, is the extension of gas reserves in the license
area over the Kudu gas field.
Offshore
seismic surveys and an aeromagnetic survey of the Nama Basin were
conducted in 1994. Investigations of the Owambo Basin and the
Karoo rocks of north-western Namibia followed in 1997. In
co-operation with Angola, a survey of the Namibe Basin was
conducted in the same year.
Namcor has also
been very actively involved in environmental protection schemes.
Following the
compilation of the Petroleum (Exploration and Production) Act,
1991, Namcor drew up the Petroleum Regulations in 1995. In 1996,
the Petroleum (Exploration and Production) Amendment Bill was
also drafted.
Vision 2030
Current
activities in the mining sector depend mainly on diamond mining
and to a lesser extent on the mining of uranium, and base and
precious metals. However, Namibia has an enormous potential for
new mineral discoveries. Future mining activities will depend on
our role in making information available to stimulate exploration
activities in the country. As new ore body discoveries elsewhere
in Africa have increased the competition to attract mineral
sector investors to Namibia, we will need to ensure that our
strategies meet the demands of regional as well as global
competitiveness. Vast potential exists for exploiting
semiprecious minerals and thereby creating income generating
opportunities in the informal sector. However, to exploit this
opportunity fully, we would need to increase our market
intelligence.
Technological
improvements should also contribute to increased offshore mining
and mining of other resources that were in the past not
economically viable to mine. Increase in offshore mining also has
the potential of increasing the risk of illegal mining and
cross-border smuggling. We would therefore need to strengthen our
regulatory mechanisms.
Based on past
performance, increase in offshore diamond mining activities and
value adding projects in the mining sector can be expected to
increase by 2% to 3% per year. However, increase in mining
activity, and depletion of resources currently being mined would
increase our role in minimising the impact of exploitation and
development on the environment.
An
understanding of the geology of Namibia and the related fields of
soil science and groundwater science are vital for the welfare of
the Namibian society. Geological study provides us with knowledge
on the formation, composition, and alteration of bedrock and
soils and enables the exploration and development of mineral and
groundwater resources. It helps us understand how geological
conditions influence every aspect of the environment vis a vis
the supply and quality of important natural resources; land
degradation and desertification; transportation and
transformation of pollutants in the ground; land use planning for
cultivation or building of houses, roads, bridges and dams;
geological hazards; and geological resources. Given the increase
in population and the rising expectations for improved quality of
life, there would need to be and there must be a vast development
of the earth’s resources of all types (land, soil,
groundwater, minerals, energy, etc.). Knowledge from the earth
sciences must therefore be integrated into all technical planning
in the years ahead to avoid economic and environmental disasters.
The energy
sector depends mainly on petroleum and electricity supplies from
South Africa. Frequent droughts in the catchment area that
supplies the Ruacana hydroelectric power station with water have
often necessitated an increase in imports in the past.
Initiatives to tap power from gas and other hydroelectric sources
would enable us to meet our current and future electricity needs
and reduce our dependence on neighbouring countries. These
initiatives also have export potential and could be valuable in
increasing our income from exports. We would therefore develop a
policy to exploit these opportunities.
As
accessibility to electricity can play an important role in
improving the living standards of people in rural areas, the
government has committed itself to linking the communal areas to
the national electrification grid. Apart from this initiative,
renewable sources of energy, such as, the sun and the wind, would
be researched for their economic viability.
Challenges
for the New Millennium
It is clear
that the growing demand for the services of the ministry needs to
be met despite financial constraints. It implies that we need to
be more critical in examining our approach to respond to issues
that cut across our business as well as to our commitment to
service delivery. The new approach would require our changing the
shape, structure and thrust of our organisation. In particular,
we will have to:
1.
align the shape and structure of our organisation to meet future
needs of our customers,
2.
streamline our systems and structures to make them more efficient
and effective,
3.
create a conducive framework for sectoral development,
4.
co-ordinate with role players in other sectors for putting in
place an inter-sectoral economic regulator,
5.
increase our market intelligence,
6.
recruit and retain qualified personnel. As a technical ministry,
we have experienced difficulties in recruiting qualified
personnel and have for many years been operating at less that 50%
of the established posts. This trend is likely to continue as
many employees leave for the private sector. However, in trying
to fill the void, the ministry would continue to provide
bursaries to suitable candidates who commit to work for the
ministry for a given period after completion of their
studies,
7.
keep abreast of new technologies and changes in the industry. The
ministry, through its staff development plan would continue to
encourage its workforce to make use of all available training
opportunities, such as, short courses, seminars, and workshops,
8.
administer the expansion of offshore mining operations. Our
priorities include putting together a core of qualified personnel
to administer and regulate these operations. In addition, marine
mining regulations would be drafted for incorporation in the Mine
Health and Safety Regulations, and
9. streamline the legal regime through the promulgation and enforcement of the various applicable acts and regulations. Legislation would constantly be reviewed to close any loopholes and to accommodate changes in the industry.