Windhoek: Namibia's mining sector is witnessing a significant shift in its revenue composition as high gold and uranium earnings offset a sharp contraction in diamond tax receipts.

According to Namibia Press Agency, a report issued on Monday by the Chamber of Mines of Namibia, non-diamond mining companies have now become the dominant contributors to state coffers.

Corporate income tax from these subsectors increased by 54 per cent, rising from N.dollars 2.9 billion in FY2024/25 to an estimated N.dollars 4.4 billion in FY2025/26. This growth was primarily driven by strong performances from gold mining operations. In contrast, corporate income tax from diamond mining companies fell by 69 per cent during the same period, dropping from N.dollars 239.1 million to an estimated N.dollars 74.3 million.

Diamond royalties also weakened, falling by more than a third from N.dollars 1.2 billion in FY2024/25 to N.dollars 755.7 million in the FY2025/26 revised estimate. The chamber attributed this decline to weak consumer demand and competition from lab-grown diamonds. Export levies paid by mining operations increased by 14 per cent to N.dollars 639 million in FY2025/26, a rise largely supported by higher uranium production.

Uranium prices averaged US.dollars 86.57 per pound in January 2026, marking a 19 per cent year-on-year increase. Gold prices also remained elevated, surging 75 per cent compared to January 2025, despite volatility caused by changes in United States monetary policy.

The report noted that mining production experienced a rebound in December 2025, with the Mining Composite Production Index increasing by 24.8 per cent month-on-month. Uranium output rose by 21.5 per cent during the month to reach 1 058 tonnes, while diamond production surged by 47.6 per cent to 178 903 carats. However, gold production declined by 11.9 per cent month-on-month to 831kg.

The chamber expressed support for the upcoming Income Tax Amendment Bill, which is expected between July and September 2026. Key provisions welcomed by the industry include the deductibility of rehabilitation expenditure and corporate social responsibility costs. The bill will also limit the carry-forward of tax losses to 10 years.

According to the chamber, the mining sector enters 2026 on a strong footing, supported by robust commodity price performance in gold, copper, zinc, and tin. Global growth is projected at 3.3 per cent in 2026, which remains broadly supportive for Namibian mineral exports.