Exploring the capital investment practice of mining corporations in Namibia
type: CreativeWork
description: Namibia is a country rich in minerals, and this has attracted both national and international investors to the mining industry in the country. The mining sector is a capital-intensive industry that calls for long-term investment. Capital investment is a long-term economic venture that requires and consumes a lot of resources, for example, the purchase of fixed assets, such as land, machinery, and buildings (Ward, 2013). Capital investment in the mining sector is risky because of various uncertainties that include among others, political risks, environmental risks (geological), fluctuations of mineral prices on the world market, changes in fiscal policies, and the depletion and exhaustion of mineral resources. Generally, risks associated with technical and commercial aspects have always been high in the mining sector (Bhapu, 2005). Because of the risky nature of the mining sector, companies venturing into a mining project need to adopt comprehensive capital investment practices that realise the return on capital, taking into cognisance all risks that could jeopardise and frustrate the ambitions of the promoters, shareholders and various stakeholders, which include the government, downstream industries and the local community. The aim of this study was to explore capital investment practices of mining corporations in Namibia focusing on the five large mining companies. The purpose was to identify gaps between investment practice and investment theory that might have a long-term impact on mineral dependent national economies, development finance for local community sustainable development and the return on capital to investors. Since large-scale mining demands large capital investment that requires proper long-term planning for the realisation of return on capital, it has been found necessary to purposively select five largest mining corporations for the study. The mining organisations involved were De Beers Marine, Rosh Pinah, Rössing, Tsumeb Corporation and Navachab.…
abstract: Namibia is a country rich in minerals, and this has attracted both national and international investors to the mining industry in the country. The mining sector is a capital-intensive industry that calls for long-term investment. Capital investment is a long-term economic venture that requires and consumes a lot of resources, for example, the purchase of fixed assets, such as land, machinery, and buildings (Ward, 2013). Capital investment in the mining sector is risky because of various uncertainties that include among others, political risks, environmental risks (geological), fluctuations of mineral prices on the world market, changes in fiscal policies, and the depletion and exhaustion of mineral resources. Generally, risks associated with technical and commercial aspects have always been high in the mining sector (Bhapu, 2005). Because of the risky nature of the mining sector, companies venturing into a mining project need to adopt comprehensive capital investment practices that realise the return on capital, taking into cognisance all risks that could jeopardise and frustrate the ambitions of the promoters, shareholders and various stakeholders, which include the government, downstream industries and the local community. The aim of this study was to explore capital investment practices of mining corporations in Namibia focusing on the five large mining companies. The purpose was to identify gaps between investment practice and investment theory that might have a long-term impact on mineral dependent national economies, development finance for local community sustainable development and the return on capital to investors. Since large-scale mining demands large capital investment that requires proper long-term planning for the realisation of return on capital, it has been found necessary to purposively select five largest mining corporations for the study. The mining organisations involved were De Beers Marine, Rosh Pinah, Rössing, Tsumeb Corporation and Navachab.…
author: Iiyambo, Hilma Naleshemunyenga
language: en
date published: 2018
date modified: 2026-07-22T22:22:47Z
provider: University of Cape Town
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Research of GSB

PropertyValue
property ID: Handle
value: http://hdl.handle.net/11427/29946