Ministry of Mines and Energy
The Ministry of Mines and Energy is requesting a budget allocation of N$212.4 million for the 2021/2022 financial year to be distributed amongst six programme areas.
These programmes are:
- Promotion of investment in exploration N$24.6 million
The re-drafting of the Mining Act and Diamond Act are to be finalised this year.
The ministry is also exploring the introduction of an on-line mineral rights application system.
It plans to do more towards the enforcement of laws and conditions of licences.
- Creation of knowledge of geological resources N$54.1 million
For the current financial year, the ministry aims to improve its understanding of the geological character and mineral potential of the //Karas and Kunene regions.
- Protection of the diamond industry N$10.9 million
The ministry intends to enhance beneficiation of locally produced diamonds in support of the growth-at-home strategy.
It will similarly revise diamond licenses application criteria and conditions, and intensify inspection and monitoring of the diamond value chain activities.
- Energy security of supply N$62.7 million
The ministry will oversee the implementation of three new Solar PV power plants with a capacity of 45 megawatts.
It also envisages the electrification of about 36 rural schools with N$44 million allocated towards the rural electrification programme.
- Petroleum security of supply N$11.2 million
More work is to be done to attract and retain investors in the petroleum upstream sector, while the ministry will continue to regulate the downstream petroleum industry.
Following concerns over the proliferation of retail fuel stations that has the potential to threaten the sustainability of the sector, the ministry has reviewed its licensing guidelines and conditions.
The ministry is also addressing the threat from illegal importation of fuel from Angola.
- Policy coordination and support services N$48.9 million
Part of the allocation here will go towards the upgrade and expansion of the ICT infrastructure of the ministry.
During the 2020/2021 financial year, the Diamond Act and the Mining Act were amended to align them with international best practices.
More legislative review is in the offing, which is aimed at enhancing transparency and accountability in the management and award of mineral rights.
Some substantive changes considered in the review include the introduction of compulsory local ownership in mineral licenses, mineral beneficiation, and mine closure plans.
Regarding local ownership, the ministry has introduced some administrative changes.
Since April this year, Namibians who have been awarded minerals exploration and prospecting licences (EPLs) and wish to dilute their ownership to foreign investors, can only do so providing that they retain at least 15% ownership.
As far as electricity supply goes, the ministry was able to electrify 33 rural public institutions like schools and clinics at a cost of N$42 million. It has also electrified more than 500 rural households at N$10 million.
Last year, the much-vaunted national oil storage facility at Walvis Bay was completed and handed over to the national oil company, Namcor, which will operate it on behalf of the state.
Namcor received its first fuel shipment last December.
This facility has a fuel storage capacity of 75 million litres, boosting stock holding capacity from 10 to 45 days.