By:Allafrica

Rising global demand for clean and reliable energy has propelled uranium to becoming Namibia's most valuable export.

The metal contributed N$2.86 billion or 26% of Namibia's total exports for April.

According to the Chamber of Mines of Namibia's monthly mining update for June, the extractive sector registered strong gains, with uranium and gold emerging as key pillars of economic growth and resilience.

"The country's uranium industry was the top performer, recording a 59% year-on-year increase in production as of April 2025," the chamber says.

Namibia is regarded the fourth largest producer of uranium in the world.

Namibia is cementing its reputation as a strategic supplier of uranium to the world, especially as nuclear energy gains renewed momentum in global energy transition efforts.

"The strong performance of our uranium sector is a reflection of confidence in the country's resource potential," the chamber says.

According to the report, gold exports also saw a substantial boost, earning N$1.69 billion in April and making up more than 15% of total exports.

"Despite short-term production fluctuations, the value of gold remains resilient on the back of historically high global prices, averaging US$3 309 (N$60 000) per ounce in May, a 41% increase year on year," the report reads.

The chamber says Namibia's gold mines have steadily increased output, contributing to broader economic stability.

However, diamond production dropped by 26% in April 2025 compared to the same period in 2024, with the sector's share of total exports falling to 10.5%, down from 12.9% a year earlier.

"This downturn follows deliberate production cuts by Debmarine Namibia throughout 2024 and early 2025, aimed at curbing oversupply and stabilising global diamond prices," the chamber says.

"Despite these efforts, the natural diamond industry continues to face mounting challenges, including intensifying competition from lab-grown alternatives and subdued demand across key Asian markets," the report states.

According to the chamber, inflationary pressures are encouragingly easing, with Namibia's annual inflation rate declining to 3.5% in May 2025, down from 4.9% in May 2024.

This has helped ease cost burdens across mining operations, it says.

Exports from the mining and quarrying sector reached approximately N$5.4 billion in April, accounting for nearly half of Namibia's total export earnings.

In the commodity markets, tin and copper prices remain elevated, supported by global demand from the technology and energy sectors.

Tin prices averaged US$32 007 per tonne, 72% higher than pre-Covid levels, while copper reached US$9 740 per tonne in March, driven by electric vehicle and green infrastructure demand.

"These positive trends reflect the resilience and adaptability of Namibia's mining industry, even in a complex global environment, and despite the ongoing challenges in the diamond sector, the chamber holds an optimistic view on the outlook for mining which is supported by the strong performance of gold and uranium," the statement says.