Observer Money

CHAMWE KAIRA Okorusu Fluorspar Pty Ltd, the holder of the mining licences ML90 and ML179, intends to apply for an amendment to the conditions of its current environmental clearance certificate, documents released this week showed. The company is applying to add a rare earth element (REE) processing plant and the cessation of graphite processing at the mine. The company said the other amendments include cessation of processing of graphite ore at the Okorusu mine site, cessation of graphite ore haulage from Okanjande mine site, the construction and operation of a new REE processing plant upon the site of the current…

The Southern African region continues to face climate-related challenges that place its agricultural sector and food supply at risk. The mid-summer drought of 2024 has devastated the regional maize supplies, a staple food crop for the region. So far, the focus has been on the losses farmers are experiencing, but soon, consumer pressures will arise. At the end of February 2024, Zambian President, Hakainde Hichilema, declared a disaster after realising the country had lost over half of its maize harvest because of the drought. Zambia’s maize production in the 2023-24 season is down by over 50% to an estimated harvest…

CHAMWE KAIRA In terms of liquidity, as at 30 June, Paladin Energy, which owns the Langer Heinrich Mine has disclosed that it held cash and cash equivalents of US$48.9 million (excluding restricted cash of US$4.3 million) and US$70 million had been drawn down from the company’s US$150 million debt facility, the company said in a quarterly activities report for the period ending 30 June. Subsequent to quarter end, the company received a cash receipt of US$24.8 million representing a partial advance payment under the terms of the customer offtake agreement, in relation to the shipment on 12 July. The Langer…

CHAMWE KAIRA NamPower, which recently secured energy infrastructure expansion funding worth N$2.6 billion from the World Bank, expects to implement the project in the period 2025 to 2028. NamPower said in response to questions by Observer Money that transmission expansion, a component of the Transmission Expansion and Energy Storage (TEES) project, involves constructing a new 400kV transmission line from the Auas Substation outside Windhoek to the Kokerboom Substation outside Keetmanshoop. “Additionally, substation upgrades at both Auas and Kokerboom will be carried out to interface with the new line. The transmission line and associated works are scheduled to commence in early…

CHAMWE KAIRA The Port of Lüderitz present a great opportunity towards economic growth of Namibia and it can serve as an oil and gas logistics hub, Cliff Shikuambi, Manager Marketing and Stakeholder Engagement at Namibian Ports Authority (Namport) told Observer Money this week. He added that the Port of Lüderitz can play a meaningful contribution towards Intra-African Trade under the African Continental Free Trade Agreement. Shikuambi said further that the Port of Lüderitz fits well with economic zone aspect reflecting on the green hydrogen projects that is underway. “The massive economic related activities of oil and gas as well as…

CHAMWE KAIRA Works on Cleanergy Green Hydrogen’s project near Walvis Bay are progressing as planned and depending on the delivery of the electrolyser, the company is still targeting operations to start in the fourth quarter of this year. The project is being undertaken by Cleanergy Solutions Namibia, is a joint venture between the O&L Group and CMB.TECH. Victoria Moller, group assistant manager of corporate relations at Ohlthaver & List Group, further commented on the progress on the hydrogen refueling station adding that the company is currently finishing the interior of the main building. “Furthermore, the installation of the solar park…

CHAMWE KAIRA Namibia produced 561 000 carats of diamonds in the second quarter of this year compared to 633 000 carats in the first quarter. Diamonds are the country’s main foreign exchange earner. The figures were contained in the Anglo American production report for the second quarter ended 30 June 2024. Anglo American owns De Beers, which is a partner of the Namibian government in Namdeb and Debmarine Namibia. Production takes place in Oranjemund and on the seabed of the Atlantic Ocean. De Beers said production in Namibia decreased by 8%, reflecting planned vessel maintenance at Debmarine Namibia but said…

CHAMWE KAIRA Deep Yellow, the Australian company that is developing the Tumas uranium project told investors in a recent project update that Eastern European countries are embracing nuclear as ‘no other option, thereby improving the outlook of the uranium price on the international market. The company said the other factors that will increase the prices are the French company, Orano leaving Niger and the US Senate approving the bill to ban Russian uranium imports. Deep Yellow has also stated that windfarms are proving uneconomic with government auctions failing to attract investment. It gave an example of Europe’s largest onshore wind…

CHAMWE KAIRA Local companies listed on the Namibian Stock Exchange and the Johannesburg Stock Exchange have announced a number of changes to their boards of directors. Letshego Holdings Namibia Limited has appointed Jerome Mutumba as independent non-executive director effective 15 July 2024. Mutumba is a seasoned business executive and strategist with nearly 21 years of senior management experience across the financial and commercial sectors, including central banking, mining, and development finance. As a well-rounded corporate executive and business management strategist by training, Mutumba possesses authoritative expertise in all relevant areas of business management and has held high-level strategic responsibilities at…

De Beers will expand its flexibility for this month’s sight as the miner responds to the market downturn by limiting supply rather than lowering prices. The company will allow sightholders to remove certain goods from allocations of rough diamonds and request larger buybacks than usual, it told clients last week. The July sight comes amid rising inventories and falling prices in the polished sector, especially in India. De Beers’ customers expect the company to maintain rough-price levels to avoid flooding the market and having a further negative impact on polished. De Beers’ sales policies have been in the spotlight in…