WINDHOEK, April 29 (Xinhua) -- Namibia's mining sector recorded strong revenue growth in 2025 despite a contraction in output, supported by higher gold prices and increased uranium production, the Chamber of Mines of Namibia said.
The sector's total sales revenue rose by about 25 percent to 64.2 billion Namibian dollars (about 3.9 billion U.S. dollars), even as mining and quarrying activity contracted by 9.4 percent during the year.
According to the chamber, despite weaker diamond production and reduced output in some base metals, stronger gold prices and improved uranium output helped cushion the downturn and support export earnings.
Mining remained a key pillar of Namibia's economy, contributing about 14 percent to gross domestic product. The sector also contributed about 7.8 billion Namibian dollars to state revenue in 2025, supported by higher corporate taxes, royalties and export levies.
Diamond prices declined by an estimated 10 to 12 percent amid weakening demand and growing competition from lab-grown alternatives, posing pressure on export earnings, the chamber said.
By contrast, uranium production rose strongly, while long-term demand linked to nuclear energy continued to support the outlook for the commodity.
Exploration spending rose by 22 percent to 1.5 billion Namibian dollars in 2025, while fixed investment increased by 31 percent to 7.46 billion Namibian dollars, supported by ongoing mine expansion and development projects, the chamber said.
However, the chamber noted that investor sentiment weakened, with Namibia's ranking for mining investment attractiveness declining amid concerns over policy uncertainty and local ownership requirements.
Looking ahead, the sector is supported by a strong pipeline of projects in uranium, gold, copper and other critical minerals, positioning Namibia for medium-term growth, it said.
The chamber, however, stressed that maintaining a stable and competitive policy environment will be essential to sustaining investment and unlocking the sector's full potential. ■