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Husab Forges Ahead www.swakopuranium.com
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Husab Forges Ahead
Swakop Uranium is constructing what will become the second largest uranium mine in the world.
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wakop Uranium's Husab project is a real headline grabber and with very good reason: it has the potential to transform a nation, producing 15 million pounds of uranium oxide when fully operational. But what does that mean to Namibians you might ask? Well, besides helping to make the country the second largest uranium producer in the world (it is currently fifth behind the likes of Niger, Australia and Canada), Husab is set to boost the southern African nation's exports by 20 percent and boost GDP by five percent per annum; that's in addition to the direct and indirect job creation. It will undeniably contribute to the country's development objectives, both economically
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and socially.Now we have your attention, let's tell you a bit more about the project. For starters its 8km uranium mineralisation has been confirmed as the highest-grade granite-hosted uranium deposit in Namibia and one of the world's most significant discoveries in decades. Essential Business Magazine understands that the mine has a potential life of more than 20 years, with uranium resources of at least 280,000 tonnes. The forecast ore grade at Zones 1 and 2 is 518 parts per million, while the total ore resource is more than 242,000 tonnes. This is a real beast and the speed at which Husab is progressing is remarkable. The
project is in the Namib Desert about 60km from the coastal town of Swakopmund. Swakop Uranium was established in 2006 after the area was targeted as an exploration area and Husab is being developed as a low-risk, conventional, large-scale load-and- haul open pit mine, feeding ore to a conventional agitated acid leach process plant. Established by Australian company Extract Resources, the mine was acquired by Taurus Minerals Limited of Hong Kong – owned by China General Nuclear Power Company Uranium Resources and the China-Africa Development Fund – in 2012 following a successful takeover and
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subsequent delisting of Extract Resources. As per Namibian laws, Taurus Minerals has a 90 percent stake while the Namibian state-owned mining company Epangelo holds 10 percent – acquiring that stake in November 2012 in a deal valued at N$1,882 billion. Construction of the mine started that same month, while mining operations went underway last year in March, with ore mining commencing in May, according to quotes carried in several media outlets attributed to Percy McCallum, Swakop Uranium's spokesman. “We have been clearing the overburden of sand and we will start mining ore from May onwards. We expect to have stockpiled a million tons of 2
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ore by December,� he said.
Chinese ownership and the nuclear debate
Swakop Uranium is, as we said, owned by CGNPC and is China's biggest single investment in Africa - CGNPC has invested more than 2 billion U.S. dollars into the
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besides helping to make the country the second largest uranium producer in the world (it is currently fifth behind the likes of Niger, Australia and Canada), Husab is set to boost the southern African nation's exports by 20 percent and boost GDP by five percent per annum
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Husab Uranium mine, with its total longterm investment estimated at around 5 billion U.S. dollars. But is Chinese ownership bad? No, at least not in our view; while many will question why foreigners own the majority of mines like this, the reality is that mining is extremely capital intensive and without huge investment they simply wouldn't happen (think start-up costs, exploration costs etc). It is quite easy to imagine a scenario where ore deposits won't be mined because there is limited capital or expertise to invest in mining – just think about that. Of course, uranium from mining is used almost entirely as fuel for nuclear power plants and an important aspect for Swakop 5
Uranium is to secure supply for the Chinese nuclear industry. That's good news for China and it is believed that through its investment in Husab, CGNPC will be able to supply sufďŹ cient uranium to feed their reactors on an ongoing basis. There is a global angle here too: the environment. While the Fukushima disaster has put many off nuclear, it is a key tool in reducing greenhouse gases. Yes, there are a lot of people that remain and likely will always be anti-nuclear, but imagine if the Chinese get to 5 percent nuclear mix, how much would that do for the planet in terms of CO2 emissions?
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It is certainly an interesting debate and we look forward to seeing the positive impact the project will continue to have on a large and sparsely populated country and indeed the wider continent and the world. Visit www.swakopuranium.com. magazine
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Contact Details Contact our office in Namibia Physical Address 2nd Floor, Husab Tower C/of Leutwein & Nathanael Maxuilili Street Swakopmund, Namibia. Tel: +264 (0) 64 410 9000 Fax: +264 (0) 64 410 9001 Email: info@swakopuranium.com.na
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