Namibia: Marine Phosphate Environmental Clearance Under Scrutiny

• Namibia Marine Phosphate (NMP) received a controversial environmental clearance certificate in August from environmental commissioner Timoteus Mufeti.
• The clearance reignited debate on development versus conservation, linking to remarks by National Planning Commission director general Kaire Mbuende and conflicts in the Kunene region.
• A "N$50 million lithium mining heist" involving Chinese-owned Xinfeng Investments, implicating Timoteus Mashuna and Ralph Muyamba, is under Anti-Corruption Commission investigation.
• The High Court interdicted mining on Timoteus Mashuna's claims in a black rhino habitat south-west of Khorixas until October 2025, pending review.
• Communal conservancies, established since 1998, support 240,000 rural Namibians and have funded essential services, with tourism creating over 57,000 jobs in the last five years.

These legal actions and ongoing investigations highlight the significant challenges and potential liabilities faced by mining companies operating in Namibia, particularly in environmentally sensitive zones.

Namibia's mining industry is facing increased scrutiny, particularly concerning environmental clearances and the balance between economic development and conservation. This debate gained prominence following the controversial environmental clearance certificate issued in August by environmental commissioner Timoteus Mufeti to Knowledge Katti's Namibia Marine Phosphate (NMP) project. Katti's business dealings have long been a source of contention, and the NMP initiative has brought the conflict between mining and established economic interests to the forefront of national discourse.

These developments coincide with remarks made by National Planning Commission director general Kaire Mbuende at the African Green Industries Summit in Swakopmund this month. Mbuende stated that Namibia should not be compelled to choose between development and conservation, advocating for "responsible development" guided by environmental and social assessments to determine appropriate locations for industrial activities, necessary mitigation measures, or outright avoidance. Media reports have connected Mbuende's statements to ongoing disputes in the Kunene region, where mining license holders clash with ecotourism conservancies, highlighting the tension between industrial expansion and the preservation of sensitive wildlife areas that serve as a global benchmark for black rhino recovery and the survival of desert-adapted lions and elephants.

The mining sector's legal and ethical landscape is further complicated by significant allegations of impropriety. In October 2022, The Namibian detailed a "N$50 million lithium mining heist" involving Chinese-owned Xinfeng Investments. This incident implicated Timoteus Mashuna and Ralph Muyamba, who was formerly the technical adviser to the mines minister. These allegations were formally reported to the Anti-Corruption Commission (ACC) and remain under active investigation, with Xinfeng Investments subsequently facing government action over alleged illegal mining activities.

Further underscoring the legal risks in the sector, Timoteus Mashuna is also involved in a separate court battle over mining claims situated within a black rhino habitat south-west of Khorixas. In this case, the High Court issued an interdict against mining operations, which remained in effect until October 2025, pending a comprehensive review. These legal actions and ongoing investigations highlight the significant challenges and potential liabilities faced by mining companies operating in Namibia, particularly in environmentally sensitive zones.

Amidst the push for large-scale industrial development, the long-standing benefits of community-based conservation and ecotourism in Namibia offer a compelling counter-narrative. Communal conservancies, first registered in 1998, have become a globally recognized model for natural resource management, supporting approximately 240,000 people in rural areas. These conservancies have delivered tangible development outcomes for nearly three decades, including funding education, drilling boreholes, and providing housing, toilets, and electricity in remote communities.

The economic contributions of ecotourism are substantial and enduring, with benefits in some conservancies comparable in significance to social grants. Environment and Tourism Minister Indileni Daniel recently informed the National Assembly that the tourism sector created over 57,000 jobs in the past five years alone. This contrasts sharply with the often-advertised promises of job creation and high salaries from mining companies, which, as exemplified by the Xinfeng saga, can prove far less sustainable and can lead to benefits accruing to parties other than the local communities in whose name "development" is often promoted.

Lawyers advising mining companies in Namibia must note the increased scrutiny on environmental clearance processes, the risk of High Court challenges to mining activities in sensitive areas, and ongoing anti-corruption investigations related to licensing. Compliance officers should assess their clients' exposure to legal and reputational risks stemming from development vs. conservation conflicts, particularly regarding community benefits and environmental impact assessments.

Source: Original reporting via The Namibian