Namibia's mining and quarrying sector contracted by 1.2 percent in 2024, reversing a 12.4 percent growth recorded in 2023, according to the Chamber of Mines of Namibia.

In a statement released Thursday evening, President of the Chamber of Mines Zebra Kasete said the decline was mainly driven by a drop in diamond production, which fell by 3.7 percent due to weak global prices, reduced demand in major markets, and deliberate production cuts aimed at preserving reserves.

Real value added from diamond mining fell by 3.7 percent, a reversal from the 10.9 percent growth recorded in 2023, he said.

However, Kasete said, despite this setback, mining remains the cornerstone of Namibia's economy, contributing 13.3 percent to gross domestic product (GDP) in 2024.

"It continues to play an instrumental role in driving economic growth and supporting national development," he said.

According to Kasete, uranium mining posted marginal growth of 1.8 percent in 2024, a considerable slowdown compared to the impressive growth rate of 29.6 percent achieved in 2023.

"This subdued performance stemmed from lower production volumes at the Rossing and Swakop Uranium mines, affected by water supply challenges and planned maintenance shutdowns," he said.

Gold production rose by 2.7 percent, supported by record output at the Navachab gold mine, while production of other minerals such as lead and zinc declined due to operational issues and lower ore grades.

Kasete said that total mining revenue increased by 1.4 percent to 52.3 billion Namibian dollars (about 2.8 billion U.S. dollars) in 2024, while net profits rose by 3.3 percent to 2.8 billion Namibian dollars.

The mining sector's fiscal contribution to government revenue saw a significant decline in 2024, with corporate taxes, royalties and export levies falling by 23.8 percent, 11.3 percent and 0.28 percent, respectively, he added.