China’s Husab mine ‘nearing profitability’

Swakop Uranium's Husab uranium mine is already the largest in Namibia and its production results for 2023 indicate that China’s largest single investment in Africa is finally nearing profitability.

Specifically, the uranium mine, whose majority shareholder is the Chinese government's China General Nuclear (CGN), boasted a 34% increase in triuranium octoxide production of 5 318 tonnes compared to the previous year, and the largest volume of uranium production at the mine yet. In addition, a record 12 million tonnes of rock were crushed, while 115 million tonnes of soil were moved - 13% more than the previous record year, 2021 - to confirm Husab's place as the largest open pit mine in Namibia.

Another achievement was a reduction in accidents that resulted in a loss of production time - from seven in 2022 to just two in 2023, a drop of 71%. Injuries and accidents resulting in production and time losses last year were the fewest since the mine started operations in 2014.

With a 25% drop in production costs per unit, Swakop Uranium was able to reduce financial losses by 44% on a year-on-year basis, bringing the largest single Chinese investment in Africa that much closer to becoming profitable.

Billion-dollar loss

Against its turnover of N$9.045 billion, Husab suffered a loss of N$1.62 billion last year.

More than 3 000 employees work day and night on the mine and earned a total of N$1.401 billion in salaries last year. Of the N$8.07 billion spent on purchases in 2023, N$3.945 billion - or about 49% - was spent within Namibia.

Furthermore, N$269 million was invested into fixed assets, N$6.9 million was spent on further exploration, N$31.59 million on training and skills development and N$6 million on welfare expenditure.

The government earned N$217 million from royalties, plus N$19 million from export duties. No corporate tax or dividends were paid for 2023.

Women at the forefront

Local media were invited to the mine last Friday to celebrate World Press Freedom Day. At the occasion, Erongo Region governor Neville Andre said: "Our stories must be told, and they must be told by us”.

He was particularly pleased to see that Swakop Uranium seeks to promote women in mining through empowerment, making them part of operations and placing them at the forefront.

According to the mine's 2022 sustainability report, 12.2% of its employees were women at that time.

Johanna Iithana is one of the graduates who were employed by the mine in 2022, after she began her studies in mechanical engineering in 2019 thanks to a scholarship from Swakop Uranium. She described her experience at the mine as a “wonderful adventure” and Husab as a place where she is constantly supported to learn more.

“Be eager to learn. Here you are in control of your own professional development," she said.

Meanwhile, Pulani Maritz was honoured at the event for over 10 years of service to the mine, and said: "At Swakop Uranium, we strive to be the best”.

The superintendent of fleet management and planning for mining, Rejoice Shilongo, highlighted an example of 'striving to be the best': A unique app has been developed internally that uses information from contractors Beifeng and GMS, together with Swakop Uranium's own data, to coordinate all mining operations.

“Think outside the box. Here we can do it," she said.

Furthermore, according to Patrick Chizabulyo, the vice-president for human resources, Husab is mining more volumes than any other mine nationwide, moving closer to the target of producing almost 6 000 tonnes of uranium per year.

Swakop Uranium CEO Qiu Bin also revealed that the mine achieved a NOSA four-star safety rating last year, progressed with the construction of its new 12 megawatt solar power plant and improved its manufacturing process, while more exploration drilling is being carried out.

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