Thursday, February 2, 2017 - 11:30
With the production of its first yellowcake more than a month ago the Husab Uranium Mine and production plant set its production goal at 15 million pounds of U3O8 per year.
The Husab Uranium Mine in Namibia is China’s single biggest investment in Africa.
Capital investment in the project from the start until the production of the first drum of yellow cake equates to about N$28 billion.
“We can proudly declare that the Husab mine is in production, bringing new vigour and vitality to the ancient Namib Desert. This is the historic moment that we have been striving for, which will be engraved into our memories, and the annals of the company and the nation,” Chief Executive Officer, Zheng Keping at a ceremony to mark the historical occasion.
The first production marks a significant milestone in development of the mine, which began more than ten years ago. Following resource definition and preliminary engineering, and the acquisition of the company by CGN and CAD Fund, construction of the mine, processing plant and associated infrastructure began in 2012. Mining operations began in 2014, removing overburden to expose the uranium-bearing ores ready for the start of processing operations. During 2016, over 100 million tonnes of over-burden material were removed.
Beata Muteka, Brand Manager at Swakop Uranium’s Husab Mine, said the China General Nuclear Power Company (CGNPC) and other Chinese partners have a 90% stake in the mine and the Namibian government-owned Epangelo Mining has 10%.
“The first production marks the successful operation of all sections of the production chain, including the mine and all stages of the processing plant,” she said.
Muteka said the plant will continue to be optimised during 2017, and the throughput will progressively be ramped up towards the target of 15 million pounds of U3O8 per year.
Muteka said construction of the processing plant was largely completed in the fourth quarter of 2016, and commissioning commenced immediately afterward.
Meanwhile, Muteka said, CGNPC has remained steadfast in its desire to see Husab become a reality despite difficult short-term uranium market conditions, and curtailment of projects and retrenchments elsewhere.
She said the company is set to be a significant contributor to the Namibia national revenue through royalties on sales and corporate taxes.
The life of the Husab mine is projected to last for at least the next 20 years, with exploration continuing to define further resources and provide job security and continued economic and social contributions for years to come.