The Chamber of Mines expects Namibia to experience a notable economic boost and upswing in the contribution of the uranium sub-sector in 2024, fuelled by the highest price increase for uranium in over 12 years.
The Chamber’s CEO Veston Malango said the upswing will come from higher production levels in existing mines and the commencement of production at the Langer Heinrich uranium mine, expected in the first quarter of this year.
This comes as the Chamber is thrilled to witness a material recovery in the uranium price, which has breached the US$100/lb mark and is currently trading at US$106/lb, a price move which market analysts have been predicting since 2013.
“Increased production in 2024, combined with growing output in the medium-term from new uranium mines, will translate into increased foreign exchange earnings for the country and increased government revenue through royalties, corporate tax and export levies,” he said.
In terms of job creation, the Chamber expects several hundred jobs to be created through the opening of the Langer Heinrich uranium mine this year, and in the medium term, further job creation is anticipated in the development of new uranium mines.
Malango noted that the creation of new jobs will also have significant multiplier effects as the newly created incomes are spent in other sectors of the economy.
This anticipation is grounded in Namibia’s status as one of the world’s foremost uranium producers, the Chamber is looking forward to the scaling up and expansion of production at existing facilities like Husab and RÓ§ssing, amongst others.
“Bannerman and Deep Yellow were both awarded Mining Licences for their Etango and Tumas projects respectively in December last year. The granting of Mining Licences places both companies in an advantageous position to leverage on the improved uranium market and start raising the required capital that is necessary to progress mine-development,” the CEO said.
Similarly, Orano Mining Namibia is also evaluating the improved market circumstances to potentially restart the operations of its Trekkopje mine.
Malango highlighted that the burgeoning uranium sector in Namibia will not only enhance its position in the global market but will also contribute to the economic growth of the local (Erongo region) and national economy.
“In the Erongo region, the multipliers of uranium expansion will also be seen in the local supply chain through new business and expansion of existing suppliers that will be required to support the additional demand from the increased production of new mines, restart of mines, and new uranium mines,” he said.
Namibia is well known for its resource endowment of uranium, and from an investment and development perspective, the increase of prices will most certainly make Namibia an even more attractive destination for mining, he emphasised.
In addition to the existing mines and upcoming projects, “we expect that the current high prices of uranium will attract substantial investment into the exploration for further discovery of new orebodies that may lead to new mines”.
This comes as Namibia experiences a significant boom in uranium exports, evidenced by the country exporting N$2.8 billion worth of uranium in November 2023.
Data released by the Namibia Statistics Agency (NSA) noted that this constituted 23.3% of its total exports for the month, with all shipments destined for China.-miningandeneregy.com.na
