Mining and quarrying producer price index surges by 7.5% in Q1
The mining and quarrying producer price index (NPPI) soared to 135.3 in the first quarter of 2024, the Namibia Statistics Agency (NSA) reported last week on Thursday
This marked a significant increase from the 125.8 recorded in the corresponding period of 2023.
The NPPI report, which serves as a barometer for tracking changes in the prices of goods and services within the local production sphere, underscores the robust performance of Namibia’s mining sector. The report highlights key sectors within mining and quarrying, including uranium, non-ferrous metals, and other mining and quarrying activities.
According to the NSA’s Statistician General, Alex Shimuafeni, the uranium mining index experienced a substantial surge, reaching 122.8 basis points during Q1 of 2024. This represents a remarkable increase of 33.8 basis points compared to the same period in 2023 when it stood at 89.0 basis points.
Shimuafeni further elaborated on the performance of other sectors within mining and quarrying, noting a notable growth trajectory. “The index for mining of other non-ferrous metal ores, encompassing commodities like copper, lead, zinc, and gold, witnessed a remarkable growth of 15.4% during the quarter under review,” stated Shimuafeni, emphasizing the sector’s resilience and expansion.
However, amidst the overall upward trend, there was a notable dip in the index for other mining and quarrying activities, primarily driven by the extraction of diamonds, a crucial economic driver in Namibia’s mining landscape. This index dropped by 20 basis points to 110 from the previous year’s 130.0 basis points, resulting in a deflation of 15.4 percent in the price levels during the first quarter of 2024.
The mining sector is paramount to the country’s economic framework, significantly contributing to GDP growth and employment generation. The sector remains a cornerstone of Namibia’s economic vitality with abundant resources such as diamonds, uranium, and non-ferrous metals.
