Staff Writer
Russian state-owned atomic energy firm, Rosatom plans to begin mining uranium in Namibia by 2029, with an initial investment of roughly N$9 billion.
The firm, through its worldwide mining company Uranium One, intends to finish the prospecting and exploring phase of the Wings project by 2026.
Exploration began in 2010, with geological studies completed between 2018 and 2021 establishing the presence of a substantial uranium deposit of the sandstone type with a 25 year support.
The project’s annual output is estimated to be 3,000 metric tons of uranium and Uranium One will use the In Situ Leaching (ISL) technology, which is the primary method of uranium mining around the world but a first in Namibia, to ensure effective and sustainable output.
With an anticipated lifespan of 25 years, the project will move on to the next stage of development after data collecting, an environmental impact analysis, and cost estimates.
Wings Project Manager, Kirill Egorov Kirillov indicated that if the exploration and prospecting results are positive and the usage of ISL is justified, more than N$5.4 billion may be invested in a uranium mill.
“If the results of exploration and prospecting are positive and the use of ISL is justified, more than N$5.4 billion may be invested in a uranium mill.”
Following the start of production, the Wings project is estimated to raise Namibia’s GDP by one to two percent.
According to Egorov-Kirillov, about N$900 million has been invested in the Namibian economy since the start of Project Wings.
“This will contribute significantly to the national budget and create 500 jobs for locals. Our contractors continue to engage local professionals even while exploratory activities continue. Over 150 local residents worked on the project last year,” he said.
Rosatom has also launched its Tanzania trial mining and processing operation, which will run from 2023 to 2025.
The Mkuju River project, centred on the Nyota deposit, has significant resources, including 152 million tonnes of ore in reserve, making it one of the world’s greatest deposits. The first stage of production is expected to yield five tonnes of yellowcake, a uranium concentrate powder, with a total annual output of 3,000 tonnes.
Rosatom’s announcement has significant implications for Namibia and Tanzania, both of which have substantial uranium reserves.
For Namibia, the project promises job creation and economic growth, with direct employment opportunities for approximately 600 people, as well as indirect job creation in the construction and service sectors.
The project is also expected to boost Namibia’s GDP by one-two percentage points.
While potential pollution of the desert and its fauna is a concern, Rosatom asserts its commitment to managing environmental risks through the use of modern environmental technologies and close monitoring of the project’s impact to prevent environmental damage.
Nonetheless, environmentalists have expressed concern, highlighting the possibly significant impact on the Namib Desert and its species.
From an economic standpoint, the Namibian uranium mining project is a long-term investment, with production scheduled to begin in the near future.
However, a potential of project delays or cancellations, would have serious consequences for the country’s economy.
Furthermore, uranium price changes may have an impact on project profitability but despite these dangers, the Namibian government remains optimistic, viewing the project as a significant opportunity to diversify the nation’s economy and create job opportunities.
