Namibian Uranium Production to Triple by 2017 in Southwest Africa

Uranium (Nuclear Minerals) / Exploration, Mining, Marketing, & Acquisitions

Date posted: 06/17/16

Andrew Topf reports that uranium production in Namibia is expected to triple by 2017 with the ramp-up of the massive Husab mine. In spite of weak commodity prices and relatively slow growth in external demand, the initiation of operation of a large-scale mining project will still support decent levels of economic growth. Namibian output of uranium in 2017, for example, is projected to be more than 3 times the volume produced in 2015, thanks in large part to the Husab uranium mine, Calle Schlettwein, Namibian finance minister. He added that tourism and export-oriented industries are expected to do well in 2016 due to the recent depreciation of the Namibia dollar. According to Namibian central bank, production of the nuclear fuel will rise 62.9% in 2016 and 89.5% in 2017. Estimates show uranium oxide production expanding by a factor of 3, from 3,713 metric tonnes in 2013 to around 11,000 MT in 2017. Namibia is the 4th largest uranium producer in the world behind Kazakhstan, Canada, Australia and Niger. Meanwhile according to China General Nuclear Power Holding Corp., the biggest producer of nuclear energy, first production of uranium oxide at Husab was expected to start in February, with full ramp-up expected in 2017. The mine is 90% owned by CGN (China) and 10% by Swakop Uranium, which is developing it. However, the timeline may have been pushed back due to a fire at a ball mill in one of the processing plants under construction, at the end of December, 2015. The $2-billion project in the Namib Desert could potentially produce 15 million pounds of U308 annually, thus overtaking Niger and Australia, Bloomberg reported. It is claimed to be the 3rd largest uranium-only deposit in the world, with measured and indicated reserves of about 140,000 tonnes. The open-pit mine with two pits is expected to have 20-year life. Canada Cameco Corp., the biggest uranium producer, has been signaled in the past as potential buyer for off-take output from the project. Read on ..