• Ongwe Minerals has launched a 6,000-meter drilling campaign on its Namibian gold licenses.

• Twin Hills and Kokoseb could lift national gold output starting in 2027.

• Gold is poised to play a larger role as diamond revenues weaken.

Canadian junior Ongwe Minerals announced on February 18 the launch of a 6,000-meter drilling campaign on its gold projects in Namibia. The move comes amid growing investment in the country’s gold potential, at a time when the prolonged slump in natural diamond prices and demand is weighing on a sector long driven by precious stones.

Ongwe acquired a local company in 2023 that holds 14 exploration licenses covering more than 307,778 hectares. The assets are now grouped into two flagship projects: Khorixas, spanning 154,000 hectares, and Omatjete, covering 107,000 hectares. While these projects remain far from production, Namibia already has two operating gold mines.

Navachab, the country’s oldest gold mine, has been in operation since 1989 and reached a record annual output in 2024, producing 125,449 ounces. Otjikoto, the second mine, operated by Canada’s B2Gold, produced 199,139 ounces in 2025. With open-pit reserves nearing depletion, Otjikoto’s output is expected to fall sharply to between 70,000 and 90,000 ounces in 2026.

B2Gold has identified an underground deposit known as Antelope, which could lift Otjikoto’s production to an average of about 110,000 ounces per year between 2029 and 2032. The initial mine life for Antelope is estimated at five years, with annual output of roughly 65,000 ounces.

New Projects on the Horizon

The decline at Otjikoto contrasts with the emergence of new projects that could sustain or increase Namibia’s gold output. Among them is the Twin Hills project, acquired in August 2024 by China’s Yintai Gold. Production is expected to begin in the first quarter of 2027. If the timeline holds, it would mark the first new gold mine in Namibia since Otjikoto began operations in 2014, nearly 13 years ago.

According to data from its former owner Osino Resources, now a Yintai subsidiary, Twin Hills could produce an average of 162,000 ounces per year over a 13-year mine life. Around 1,000 workers are expected during construction, which began in 2025, and about 800 jobs are planned during operations.

At a less advanced stage, the Kokoseb project, owned by Australia’s WIA Gold, has also raised expectations. A preliminary economic assessment indicates potential average annual production of 146,000 ounces over 11 years, rising to as much as 177,000 ounces annually during the first five years. Twin Hills is expected to require $475 million in initial capital, while WIA estimates $358.8 million for Kokoseb.

A More Diversified Mining Industry

Rising gold output over the medium term could increase state revenue, especially as gold prices trend higher. After climbing more than 60% in 2025, gold prices have continued to rise this year, trading at about $5,000 per ounce.

While the economic contribution of the diamond sector is well documented — accounting for 3.4% of GDP and 14.7% of exports in 2024, according to the Chamber of Mines — gold’s impact is less clearly defined.

In 2024, Otjikoto generated 2.13 billion Namibian dollars ($131.64 million) in taxes and royalties, representing 40.48% of total mining revenue from taxes and royalties that year, estimated at 5.26 billion Namibian dollars. Mining accounted for 13.3% of GDP in 2024, with uranium playing a central role, alongside tin, copper and zinc.

Emiliano Tossou