Examining electricity consumption patterns by the mining sector in Namibia between 2003-2013
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Date
2015
Authors
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Journal ISSN
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Publisher
University of Namibia
Abstract
Energy is an essential component of a developing economy such as that of Namibia. The affordability, availability and security of energy supply are indispensable to economic development on many facets. This study focused on electricity consumption patterns by the mining sector in Namibia by examining variations of annual production output, electricity consumption, electricity per unit output of production, and electricity tariffs of Gold, Uranium and SHG (Special High Grade) Zinc in Namibia between 2003 and 2013. The research also aimed to examine relationships between mining production output, electricity consumption, and electricity tariffs of Gold, Uranium and SHG Zinc. Main findings indicate that Gold mining scatter plots of electricity consumption against production output revealed a negative correlation; Uranium mining scatter plots of electricity consumption against production output revealed a positive correlation; and lastly SHG Zinc scatter plots of electricity consumption against production output revealed a positive correlation. It could thus be recommended that onsite energy audits be conducted as a means of assessing the underlying causes of the observed trends particularly the increase in electricity consumption accompanied by a decrease in overall production for gold mining. It could also be advisable for Uranium and SHG mining to visit the option of energy audits within their operations as a means to possibly curb possible excess electricity consumption. Electricity tariffs for mines in Namibia have increased with 700% between 2003 and 2013. It could thus be recommended to the ECB to revisit their tariff design for the mining sector in
particular so as to not harm this industry. The study has also revealed that there has been a positive correlation between electricity tariffs and electricity consumption of gold, uranium and SHG Zinc mining in Namibia between 2003 and 2013 due to the fact that, ยท'electricity demand in Namibia is price inelastic but income elastic" (Ziramba & Kavezeri, 2012, p.6).
Description
A research thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration
Keywords
Electricity consumption, Namibia mining sector