COMPANY PROFILE
2014
Swakop Uranium
One of the largest and most efficient uranium mines in the world‌
company profile
One of the largest and most efficient uranium mines in the world… Editorial: Harriet Pattison Production: James Clark
In the Erongo region of central west Namibia a project of global significance is currently taking shape under the supervision of Swakop Uranium, established in 2006 to explore, evaluate, develop and produce uranium oxide (U3O8) as a source of fuel conversion for lowcost, environmentally-friendly, nuclear power.
What is the first thought that enters your mind when you hear the word ‘uranium’? Is that thought to do with safety? Is it to do with danger? People often correctly associate uranium with the nuclear power industry but wrongly associate this valuable element with disaster, contamination and all things nasty. However, uranium itself is a natural metal like gold or lead but much more abundant. It is found in most of the Earth’s rock, soils, rivers and oceans and is used mainly to produce electricity and power some sea-going vessels. So what is that makes people uneasy when Uranium is discussed? Probably the fact that uranium-235, a concentrated or ‘enriched’ uranium, has been used as the fissile explosive material to produce nuclear weapons. But, like most elements, when handled correctly uranium is widely considered safe; trace amounts of it can even be found in food and in our bodies. Its reputation has changed in recent years and since nuclear power has become more popular and is now being actively supported by many experts around the world – especially in South Africa where planning for six new nuclear power stations is currently underway – the demand for uranium has been on the increase.
PAGE 2 APR 14
Uranium’s most useful property is that its atomic structure can be changed in a process that releases energy in the form of heat. Inside a nuclear reactor, this heat is harnessed to generate electricity without producing greenhouse gases - an attribute which coal and gas power stations cannot match. So where does uranium for use in power stations actually come from? It is mined, through various methods, from countries around the world; mainly Kazakhstan, Canada, Australia, Niger, Russia and of course, Namibia.
HISTORIC FIND Namibia has been supplying uranium to world markets since the 70’s. It was originally discovered in Namibia in the Namib Desert in 1928 but it took over 40 years for uranium to be produced at Rio Tinto’s Rössing mine. In 2010, worldwide production of uranium reached over 53,000 tonnes with Namibia producing just under 4500 tonnes in that year. Back in 2008, Swakop Uranium’s owners at the time, the Australian exploration company Extract Resources, announced a major new uranium discovery beneath the sands in the Erongo region of central west Namibia,
Swakop Uranium
around seven kilometres south of the Rӧssing Uranium Mine. The first blast on the site, releasing 200 tonnes of uranium-bearing granite, was detonated by the Namibian Minister of Mines and Energy in June 2010. Progress then moved very quickly with EIA approval in January 2011, Definitive Feasibility Study (DFS) results in April 2011, EIA approval in July 2011 and a mining license granted in December 2011. The Namibian Ministry of Mines and Energy granted the licence to Swakop Uranium to develop the Husab mine with the goal of supplying uranium for nuclear power stations around the world. 2012 was again a busy year for in the development of the mine with a change in ownership in March (Taurus Minerals takes over Swakop Uranium’s 100% shareholder, Extract Resources – Taurus Minerals is owned by China General Nuclear Power Company Uranium Resources Co Ltd and the China-Africa Development Fund) and an Engineering, Procurement and Construction Management (EPCM) agreement signed in November. Later that month, the Namibian government-owned mining company Epangelo Mining Company took a
stake in Swakop Uranium, leaving the company owned 90% by Taurus Minerals and 10% by Epangelo. 2013 saw the first water pumped to the site (Feb), the ground breaking ceremony (Apr) and the arrival of haultruck dump bodies (Jun) - one of the largest freights ever carried by road in southern Africa. This year; power has been connected, investment into the community has commenced and the official start of mining activities was celebrated following a detonation on March 12th. When in full production, the mine will be the second largest uranium mine in the world and will produce approximately 15 million pounds per annum of uranium oxide. This will make Namibia the second largest producer in the world behind only Kazakhstan.
IT’S A LOT OF FUN Director of communications and stakeholder involvement at Swakop Uranium, Grant Marais, tells IndustrySA that the project is on track and extremely exciting. “It’s a lot of fun, there is a lot going on,” he says. “When I joined the company there were six people and I’ve seen significant changes, it’s been an amazing
APR 14 PAGE 3
company profile
SECURITY WITH INTEGRITY
OMEGA
Security Services
Omega is setting the standard by moving away from a one-dimensional service towards focusing on integrated security solutions that entail the combination of a well diversified service offering. Please visit our website or get in touch to find out more. T: +264 (0) 61 418400 F: +264 (0) 61 256105 johanv@omegasol.com www.omegasol.com
journey going from an empty field with a few holes in it to seeing what’s happening today on site; I definitely don’t get bored, I come in first thing in the morning looking forward to the day – how could you get bored of the second biggest uranium mine in the world? “We are in the development/construction phase. Internally, every item is specifically detailed with start and end dates and it all falls under a very complex programme. We are past the civils and groundwork and moving into construction.” As for control over the construction of the mine, Swakop Uranium is in command although a joint venture partnership is carrying out most of the work. “Tenova Bateman and AMEC is the joint venture EPCM partner called Husab Project Joint Venture (HPJV) and they are doing the project under our project management team. So, Swakop Uranium control HPJV who are building the mine,” explains Marais. The current activities on site are wide-ranging. It is a busy place with activities, everything from pre-stripping to the assembly of the massive dump trucks that will be used in daily operations when the mine begins producing. “Pre-stripping started recently,” says Marais. “You’ve got an ore body underground at varying depths and whilst we are constructing the mine and the process
PAGE 4 APR 14
plant, we are already pre-stripping the overburden and getting ore through the crusher so we can build a stock pile. So when the processing plant comes on line, the product can start going through smoothly. “Overall, it’s a massive plan that has to come together. Equipment is being assembled, we are starting with training of drivers and we are moving all of the equipment to the correct area of the site.”
A POSITIVE START Progress since the mining license was granted in 2011 has been swift and, to date, all the deadlines have been met. “As for second quarter 2014, we are on target – so far so good,” says Marais. As the construction phase comes and goes, the focus will inevitably turn to mining and Marais explains that the emphasis will be on guaranteeing quality and quantity is delivered to the processing plant. “Currently mining is just a small part of the process, but when the mine is finished it will be a massive part and we need to ensure that there is sufficient and good quality ore for the processing plant to turn into final product.”
Williams Hunt
At Otraco we’ve been investing heavily in innovative solutions to extend tyre life and build safety into operations. O PROTRACO ASS UD TO IS OC BE W IATE SW ITH D URAAKOP NIU M
Otraco Southern Africa (PTY ) Ltd
70 Mokwa Street, N4 Gateway Industrial Park, Pretoria, South Africa T: +27 (0)12 803 0277 F: +27 (0)12 803 0220 E: info@otraco.co.za
www.otraco.com
Even though full-scale production is still years off, plans are well underway to secure customers for uranium from the Husab Mine. “We are busy negotiating off-take contracts already and those are with various utilities worldwide, not only the Chinese, despite the fact that this is 90% owned by the Chinese government. We are negotiating with agents so we can have off-take agreements signed prior to exports being taken,” says Marais. Although China will be the major client, other utility providers from around the world will make up the group of customers. However, uranium is set to be an important investment for China as it looks to address its issues with air pollution. Even though the Husab mine will be a major contributor, it will still not satisfy the entire demand from China so Swakop Uranium’s exploration will undoubtedly continue. “The Chinese have made a strategic decision around uranium. They said this is a strategic resource that they require to clean up their atmosphere because they are building nuclear power plants that will have no CO₂ emissions. Pollution has a massive impact in China. The need for uranium is on-going as one of the Chinese core power requirements is going to come from nuclear.
Swakop Uranium will supply that product to them. The decision has not yet been made as to what percentage will go to China and what will go to other utilities but I can tell you now, we will not produce enough to supply all of their reactors,” explains Marais. Although mining is now officially underway, delivery to customers is still a long way off. For now, each milestone is an achievement in itself for this monumental project which is not just significant for Namibia, but for the world as a whole. Next month we will explore Swakop Uranium and the Husab Mine further and understand more about its operating requirements and its impact on the local community.
.
“As for second quarter 2014, we are on target – so far so good” APR 14 PAGE 5
www.swakopuranium.com +264 (0) 61 419 600
(0)1603 618 000 info@industrysa.com East Coast Promotions Ltd, Ferndale Business Centre, 1 Exeter Street. Norwich, Norfolk NR2 4QB