The Chamber of Mines of Namibia announced on Monday that the sector is expected to contract by 6.2% in 2026, a steeper fall than the 2.2% decline previously forecast by the Bank of Namibia.

The September 2026 Monthly Mining Update showed the mining production composite index fell 4% month‑on‑month in August, largely because diamond output dropped 12% during the same period.

While production of uranium, zinc and gold rose by 8%, 27% and 4% respectively, these gains were insufficient to offset the overall decline caused by weaker diamond performance.

Rising fuel prices are squeezing profit margins at profitable mines and adding financial pressure to loss‑making operations, according to the chamber’s assessment.

The chamber warned that continued fuel inflation could keep operating costs elevated in the coming months, especially for mines already facing weaker commodity prices.

Despite the downturn, minerals still accounted for about 72% of Namibia’s domestic exports in August, generating 6.69 billion Namibian dollars (approximately Sh52.9 billion) out of a total export value of 9.33 billion Namibian dollars (Sh73 billion).

Uranium export earnings surged 438% month‑on‑month to 3.36 billion Namibian dollars (Sh26.5 billion) after the Husab mine resumed full production in July following a planned maintenance shutdown.

Mineral prices in September were mixed, with gold and tin recording declines, although overall price levels remained supportive of the sector, the chamber noted.

Looking ahead, the chamber said the medium‑ to long‑term outlook stays positive, underpinned by firm gold and uranium prices, as well as new projects and planned expansions.