Benefits to traditional authorities from mineral developments
From 13 to 17 November 2023, the Council of Traditional Leaders held its 24th Annual Meeting in Swakopmund.
On Tuesday, 14 November 2023, provision was made for attendants to receive presentations on the latest developments with regards to operations of Headspring Investments, a subsidiary of Uranium One, and learn how Traditional Authorities can benefit from exploration and mining activities in communal areas.
Three presentations were made in this session; two by Uranium One and the third by Water Solution Group cc. The presentations by Uranium One focused on the Global Uranium Outlook and the envisaged ISR (In-Situ Recovery) Project in Namibia. Mr. Kirill Egorov-Kirillov, Uranium One Director of Mining Projects / Headspring Investments gave a summary of Namibia’s uranium reserves, its production level and the impacts of the ISR Technology on global uranium production. Further, he explained the Rosatom Fuel Cycle and the position of Namibia’s uranium in this equation. Based on current exploration data (covering only 50% of the target area), he gave an ore reserve estimation of 75 000 tons and a projection of annual production of 3 000 tons of U308 for 25 years (Life of Mine), which will contribute between 1% and 2% to the GDP of Namibia.Eng. Aldo Hengari: Director of Operations: Headspring Investments, gave a simulation of ISR Technology and expanded on its advantages. He also spoke about challenges encountered with the implementation, emphasising the importance of conducting test mining so as not to further delay the project execution. Also, he touched on the project timeline and corporate social investment initiatives embarked on.
The third presentation was Benefits to Traditional Authorities from Mineral Developments. This presentation, made by Water Solution Group cc, aimed to stimulate discussions on how Traditional Authorities can benefit from mineral developments in communal areas.
It is a fact that in many communal areas of Namibia, the agricultural sector alone will not be the driver for socio-economic development or the creator of sustainable employment for the unemployed masses. These observations are supported by the low participation of community members in agriculture, poor access to arable land, under-developed water infrastructure, climate change, shortage of funds for investments in the agro-industries, poor value addition, etc. Further, over-reliance on agriculture only, will not promote economic diversification in communal areas.
Exploration
Recently, there has been increased interest in mineral exploration and possible mine developments in many areas under the jurisdiction of various Traditional Authorities. Given the newness of mineral developments in communal areas, combined with limited knowledge of this industry, and undefined benefits to be accrued, the Traditional Authorities are moving at a very slow pace to embrace the mineral sector. Moreover, members of communal areas need to be convinced that mineral-mining industries can co-exist with agricultural activities and sustainable water management practices; indeed, synergies can create employment in rural areas. Hence, good industrial practices in the world must be adopted and pursued.
It is a fact that mining activities impact severely the sites of operations and the surrounding environment. Therefore, it is not surprising when residents of communal areas raise concerns about the impacts of and benefits to be derived from mining operations. Despite these impacts, benefits to the local communities are low. Massive benefits have been accrued to the government, investors, EPL licence holders, mining licence holders and BEE groupings. Namibia has had several incidents when benefits to the communities had ceased when the mine had come to the end of its operations and/or had down-scaled. Since there were no activities planned after the lifespan of the mining operations, some of the mining sites had turned to ghost towns. The examples are just too many to be mentioned.
Traditional leaders wish to see the members of their communities benefit from mineral-mining operations during all the stages - from mineral exploration to mining operations and to the de-commissioning stage. Guided by the above, equitable participation of the Traditional Authorities in mining projects must be given considerate attention. It is the view of the author of this article, that the resolution of the benefits question could ensure early buy-in by the communities, and accelerated implementation of many mining-mineral projects.
Benefits
Also, for broad participation and increased benefits to locals, once a mining company is listed on the local stock exchange, a number of Namibians will undoubtedly acquire shares. These very participations and concomitant benefits to the locals, are associated with strong identity with the mining company as a national entity. Once these positive actions are taken, during the early stages of the mining projects, there will be less hostilities and apprehension towards the said companies. This is a win-win option that must be exploited for the benefit of all the parties – investors and locals.
For the Traditional Authorities to benefit from mineral development initiatives; it is of utmost importance for the concerned entities to strategically position themselves. This positioning, in order to yield the desired results, must enjoy the unreserved support of the Central Government. Some of the interventions required so as to position the Traditional Authorities, strategically, are the following:
(i) Increased role of the central government in facilitate communications amongst stakeholders;
(ii) Revision of the Mineral Policy of 2002, so to provide for equity participation of diverse stake holders in mineral-mining projects;
(iii) Definition of the long-term benefits to the communities beyond the corporate responsibilities gestures;
(iv) Creation of institutional support by the national and regional authorities to assist the traditional authorities;
(v) Since mineral ore bodies can extend beyond the areas under the jurisdiction of a given Traditional Authority, there is a need for close cooperation amongst neighbouring authorities if they are to benefit from these resources.
(vi) Given the uniqueness of each mineral-mining projects as well as the cultural practices of the local communities, it is of critical importance to establish a multi-disciplinary project team, with clear Terms of Reference. Such a project team must be constituted and functioning before any work at the site starts.
• Dr Eng Kuiri F Tjipangandjara is a graduate of basic sciences, applied sciences and engineering. He holds a Doctorate Science Engineering Degree, with specialisation in mineral engineering and chemical metallurgy from Columbia University, NYC, NY, USA. He has interest in Science and Technology Management. He is a scholar of Water Security. His working experiences are in the mineral-mining, academic and the water sectors. His vast publications and presentations have been in the above fields. He is the MD: Water Solution Group cc.
On Tuesday, 14 November 2023, provision was made for attendants to receive presentations on the latest developments with regards to operations of Headspring Investments, a subsidiary of Uranium One, and learn how Traditional Authorities can benefit from exploration and mining activities in communal areas.
Three presentations were made in this session; two by Uranium One and the third by Water Solution Group cc. The presentations by Uranium One focused on the Global Uranium Outlook and the envisaged ISR (In-Situ Recovery) Project in Namibia. Mr. Kirill Egorov-Kirillov, Uranium One Director of Mining Projects / Headspring Investments gave a summary of Namibia’s uranium reserves, its production level and the impacts of the ISR Technology on global uranium production. Further, he explained the Rosatom Fuel Cycle and the position of Namibia’s uranium in this equation. Based on current exploration data (covering only 50% of the target area), he gave an ore reserve estimation of 75 000 tons and a projection of annual production of 3 000 tons of U308 for 25 years (Life of Mine), which will contribute between 1% and 2% to the GDP of Namibia.Eng. Aldo Hengari: Director of Operations: Headspring Investments, gave a simulation of ISR Technology and expanded on its advantages. He also spoke about challenges encountered with the implementation, emphasising the importance of conducting test mining so as not to further delay the project execution. Also, he touched on the project timeline and corporate social investment initiatives embarked on.
The third presentation was Benefits to Traditional Authorities from Mineral Developments. This presentation, made by Water Solution Group cc, aimed to stimulate discussions on how Traditional Authorities can benefit from mineral developments in communal areas.
It is a fact that in many communal areas of Namibia, the agricultural sector alone will not be the driver for socio-economic development or the creator of sustainable employment for the unemployed masses. These observations are supported by the low participation of community members in agriculture, poor access to arable land, under-developed water infrastructure, climate change, shortage of funds for investments in the agro-industries, poor value addition, etc. Further, over-reliance on agriculture only, will not promote economic diversification in communal areas.
Exploration
Recently, there has been increased interest in mineral exploration and possible mine developments in many areas under the jurisdiction of various Traditional Authorities. Given the newness of mineral developments in communal areas, combined with limited knowledge of this industry, and undefined benefits to be accrued, the Traditional Authorities are moving at a very slow pace to embrace the mineral sector. Moreover, members of communal areas need to be convinced that mineral-mining industries can co-exist with agricultural activities and sustainable water management practices; indeed, synergies can create employment in rural areas. Hence, good industrial practices in the world must be adopted and pursued.
It is a fact that mining activities impact severely the sites of operations and the surrounding environment. Therefore, it is not surprising when residents of communal areas raise concerns about the impacts of and benefits to be derived from mining operations. Despite these impacts, benefits to the local communities are low. Massive benefits have been accrued to the government, investors, EPL licence holders, mining licence holders and BEE groupings. Namibia has had several incidents when benefits to the communities had ceased when the mine had come to the end of its operations and/or had down-scaled. Since there were no activities planned after the lifespan of the mining operations, some of the mining sites had turned to ghost towns. The examples are just too many to be mentioned.
Traditional leaders wish to see the members of their communities benefit from mineral-mining operations during all the stages - from mineral exploration to mining operations and to the de-commissioning stage. Guided by the above, equitable participation of the Traditional Authorities in mining projects must be given considerate attention. It is the view of the author of this article, that the resolution of the benefits question could ensure early buy-in by the communities, and accelerated implementation of many mining-mineral projects.
Benefits
Also, for broad participation and increased benefits to locals, once a mining company is listed on the local stock exchange, a number of Namibians will undoubtedly acquire shares. These very participations and concomitant benefits to the locals, are associated with strong identity with the mining company as a national entity. Once these positive actions are taken, during the early stages of the mining projects, there will be less hostilities and apprehension towards the said companies. This is a win-win option that must be exploited for the benefit of all the parties – investors and locals.
For the Traditional Authorities to benefit from mineral development initiatives; it is of utmost importance for the concerned entities to strategically position themselves. This positioning, in order to yield the desired results, must enjoy the unreserved support of the Central Government. Some of the interventions required so as to position the Traditional Authorities, strategically, are the following:
(i) Increased role of the central government in facilitate communications amongst stakeholders;
(ii) Revision of the Mineral Policy of 2002, so to provide for equity participation of diverse stake holders in mineral-mining projects;
(iii) Definition of the long-term benefits to the communities beyond the corporate responsibilities gestures;
(iv) Creation of institutional support by the national and regional authorities to assist the traditional authorities;
(v) Since mineral ore bodies can extend beyond the areas under the jurisdiction of a given Traditional Authority, there is a need for close cooperation amongst neighbouring authorities if they are to benefit from these resources.
(vi) Given the uniqueness of each mineral-mining projects as well as the cultural practices of the local communities, it is of critical importance to establish a multi-disciplinary project team, with clear Terms of Reference. Such a project team must be constituted and functioning before any work at the site starts.
• Dr Eng Kuiri F Tjipangandjara is a graduate of basic sciences, applied sciences and engineering. He holds a Doctorate Science Engineering Degree, with specialisation in mineral engineering and chemical metallurgy from Columbia University, NYC, NY, USA. He has interest in Science and Technology Management. He is a scholar of Water Security. His working experiences are in the mineral-mining, academic and the water sectors. His vast publications and presentations have been in the above fields. He is the MD: Water Solution Group cc.
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