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Value chain analysis begins

Getting to understand the intricacies of the extractive value chain requires an in-depth analysis of its existing feature. For this purpose, the Ministry of Mines established a dedicated committee. Progress on the work of the Joint Value Addition Committee (JVAC) was presented to the public at the Mining Conference held at the Safari Hotel in Windhoek this week.
Reporting to conference delegates on the progress of the committee, the Permanent Secretary of the Ministry of Mines and Energy and Chairman of Joint Value addition Committee, Hon. Kahijoro Kahuure said, “The committee engaged with an international company versed in value addition on the technical study and it will investigate the value chain analysis of the minerals namely copper, gold, iron, diamonds, lead, uranium and zinc.”
“Currently the committee awaits the completion of the study after which they will brief the government and also engage with all the stakeholders,” he said.
The Joint Value Addition Committee was formed following a proposal by the Chamber of Mines to the government, to establish a body between the private sector and the ministry, to benchmark all steps of extractive value addition.

The Chamber of Mines proposal had since been adopted in the fourth National Development Plan (NDP4) with the mandate to develop a value addition committee to determine which minerals have the highest potential for local value addition while not negatively impacting sustainability.
Kahuure said that the objectives of the committee are to try and limit the exportation of “raw”minerals and try and increase export revenue, while creating jobs and economic diversity and to stimulate economic growth.
According to Kahuure the reason for embarking on this process is because the government wants to enhance economic development as well as diversify the economy. The government also recognised that there was limited benefits that had taken place.
Kahuure said the terms of reference of the committee are to determine a clear understanding of the value addition chain in the minerals industry.
“The committee will also investigate why Namibia has so far not attracted major investments in the manufacturing industry as well as identify incentives to promote value addition locally,” he added.
Meanwhile at the conference in a joint presentation, Chief Executive Officer of the Chamber of Mines, Veston Malango touched on the downstream beneficiation of minerals pointing out that in everyday applications, minerals are vital and should be safe guarded as they form the basis of modern life.

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