Erongo's uranium mining sector thriving

Precious Nghituanapo
Namibia’s uranium mining industry has been reaping the benefits of a global shift in uranium prices and increased support for nuclear energy worldwide, while also playing a strategic role in Namibia’s overall socio-economic development.

In his recent state of the region address, Erongo governor Neville Andre discussed significant developments in the mining sector, particularly uranium mining, during 2023.

“The uranium industry is a catalyst for socio-economic development. In 2023, it provided employment to 6 520 people. Each job in the mining sector creates an average of seven additional jobs in the supply chain, amplifying the industry’s positive impact on our economy,” Andre said.

“The total procurement expenditure by the industry amounted to N$14 billion, with N$7.7 billion spent locally, while the sector’s contribution to corporate social responsibility projects reached N$52.9 million this year. This significant investment supports our local businesses and communities, reinforcing our commitment to regional economic growth," the governor said.

Touching base on the sector's crucial role in Namibia's economic progress and regional growth, amidst global shifts in nuclear energy policies and uranium pricing, he said this has made it possible for expanding existing mining projects, re-opening dormant mines, and launching new ventures.

Key players

Rossing Uranium has been a key player in the sector, maintaining its status with a nameplate capacity of 4 500 tonnes of uranium oxide per year.

By the end of 2023, the mine had produced a cumulative total of 148 537 tonnes of uranium oxide, contributing approximately 4.5% to global primary production. The mine's production for the year stood at 16.7 million tonnes, a slight increase from 16.6 million tonnes in 2022.

“In 2023, Rossing Uranium achieved a revenue of N$6.48 billion, a notable increase from N$4.84 billion the previous year. This growth reflects the mine’s resilience and solidifies Namibia’s position as the third-largest primary uranium producer worldwide, following Kazakhstan and Canada. The ministry of mines and energy has supported this progress by extending the mine’s license for an additional 15 years," Andre said.

Regarding Swakop Uranium, the governor remarked: “Swakop Uranium has demonstrated exceptional performance this year. Their efforts in improving production planning and resolving technical challenges have resulted in a 13% increase in output, setting a new benchmark for the industry.”

The mining output was 116 million tonnes in 2023, compared to 103 million tonnes in 2021.

Significant steps

The governor further commented on the Husab Mine initiative, saying: “The commencement of the N$290 million pilot heap leach project at Husab Mine is a significant step towards exploring the economic viability of processing lower-grade ore. This project resembles our commitment to innovation and sustainability in the sector.”

With an investment exceeding N$1.5 billion, including substantial local spending and job creation, LHU is not only boosting production but also contributing significantly to regional development.

On Trekkopje Mine’s current status, the governor said: “While Trekkopje Mine remains under care and maintenance, the Orano Group is closely monitoring market conditions. We are hopeful that future developments will allow for the resumption of full-scale operations.”

Challenges

Despite the favourable price developments, water scarcity in the Erongo Region remains a pressing issue. The govenor noted that the limited and intermittent supply of water poses a significant challenge for mining operations.

Additionally, infrastructure developments remain a concern. “The condition of the B2 road is a major obstacle. Its narrow lanes and inadequate capacity are not suited to the heavy traffic from our mining operations, impacting transportation efficiency.”

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Namibian Sun 2024-09-19

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LaLiga: Real Betis 2 vs 1 Getafe | Mallorca 1 vs 0 Real Sociedad | Rayo Vallecano 3 vs 1 Osasuna SerieA: SS Lazio 2 vs 1 Hellas Verona | Parma 2 vs 3 Udinese Katima Mulilo: 19° | 40° Rundu: 20° | 39° Eenhana: 17° | 37° Oshakati: 17° | 35° Ruacana: 17° | 35° Tsumeb: 21° | 34° Otjiwarongo: 14° | 33° Omaruru: 13° | 33° Windhoek: 12° | 29° Gobabis: 10° | 29° Henties Bay: 10° | 16° Wind speed: 24km/h, Wind direction: S, Low tide: 05:02, High tide: 11:41, Low Tide: 18:01, High tide: 00:18 Swakopmund: 11° | 13° Wind speed: 27km/h, Wind direction: SW, Low tide: 05:00, High tide: 11:39, Low Tide: 17:59, High tide: 00:16 Walvis Bay: 10° | 16° Wind speed: 27km/h, Wind direction: S, Low tide: 05:00, High tide: 11:38, Low Tide: 17:59, High tide: 00:15 Rehoboth: 8° | 27° Mariental: 10° | 25° Keetmanshoop: 8° | 22° Aranos: 8° | 26° Lüderitz: 10° | 34° Ariamsvlei: 8° | 21° Oranjemund: 9° | 27° Luanda: 21° | 23° Gaborone: 14° | 27° Lubumbashi: 17° | 37° Mbabane: 8° | 10° Maseru: 4° | 11° Antananarivo: 12° | 29° Lilongwe: 21° | 32° Maputo: 16° | 19° Windhoek: 12° | 29° Cape Town: 12° | 19° Durban: 12° | 17° Johannesburg: 8° | 18° Dar es Salaam: 23° | 28° Lusaka: 23° | 36° Harare: 19° | 32° Currency: GBP to NAD 23.2 | EUR to NAD 19.53 | CNY to NAD 2.47 | USD to NAD 17.49 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.28 | EGP to NAD 0.35 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.65 | ZWL to NAD 0.04 | BRL to NAD 3.21 | RUB to NAD 0.19 | INR to NAD 0.21 | USD to DZD 132.04 | USD to AOA 926.84 | USD to BWP 13.21 | USD to EGP 48.46 | USD to KES 128.48 | USD to NGN 1593.37 | USD to ZAR 17.52 | USD to ZMW 26.3 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1838.95 Up +1.41% | Casablanca Stock Exchange (CSE) MASI 14184.33 Up +0.68% | Egyptian Exchange (EGX) 30 Index 30937.69 Up +1.96% | Botswana Stock Exchange (BSE) DCI 9651.25 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - 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Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 589.10/OZ UP +1.16% | Copper US$ 4.32/lb UP +1.84% | Zinc US$ 2 955.80/T UP 0.43% | Brent Crude Oil US$ 74.71/BBP UP +2.35% | Platinum US$ 984.85/OZ UP +1.78%