Rössing Uranium Limited spent N$4.37 billion on Namibian suppliers in 2024, accounting for 84% of its total procurement budget of N$5.23 billion, the company has confirmed.
Rössing Managing Director Johan Coetzee said the local expenditure, up from N$3.88 billion in 2023, marks a significant contribution to the domestic economy through support for businesses and job creation.
“In addition to these, we make substantial payments to suppliers at both local and national levels, supporting businesses and employment throughout the value chain. Of the total N$5.23 billion spend, 10% was paid to South African suppliers and 6% to other international sources,” Coetzee said during the company’s latest operational update.
Spending was primarily concentrated in the Erongo Region, which accounted for 48% of the local procurement, followed by the Khomas Region with 42%.
The remaining 10% was distributed across other parts of the country, with notable activity in the Northern Region due to the company’s sulphuric acid supply agreement with Sinomine Tsumeb Smelter.
“This continued high percentage of local sourcing and prioritising support for local suppliers, including small and medium enterprises, reflects our commitment to supporting economic growth in the Erongo Region and Namibia as a whole,” Coetzee said.
In 2024, 38% of Rössing’s Namibian procurement went to suppliers with majority Namibian ownership, a drop from 57% in 2023.
However, the proportion of spending on suppliers employing 75% or more Namibians rose to 97%, up from 86% the previous year.
According to Coetzee, the decline in spending with majority Namibian-owned suppliers is largely due to a strategic change in mining operations. “The drop is mainly due to Beifang Mining’s start as the mining contractor for the LoME Phase 4 project, marking a shift from owner to contractor mining,” he explained.
During the reporting period, Rössing spent N$227 million on goods and services sourced from previously disadvantaged Namibians and local SMEs, an increase from N$140 million in 2023.
The company posted a net profit after tax of N$1.03 billion for 2024, down from N$1.34 billion the previous year, while revenue fell by 9% to N$5.93 billion.
Despite the decline in earnings, capital investment rose sharply to support future operations. “Significant investments in infrastructure and equipment, totalling over N$1.1 billion, resulted in a 22% increase in total assets to N$10.1 billion,” Coetzee said.
Equity grew to N$5.83 billion, supported by an increase in retained earnings. Cash generated from operations reached N$739 million, aiding the company in meeting its operational and strategic commitments.
Although cash and cash equivalents decreased to N$2.23 billion, Rössing maintained what it described as a strong liquidity position through careful financial management.
The company said the 2024 results demonstrate its ability to operate sustainably while continuing to invest in future growth and deliver value to stakeholders.
“As we look ahead, Rössing Uranium remains committed to operating responsibly, creating shared value, and contributing meaningfully to Namibia’s economic and social development. Our achievements in 2024 reflect the dedication, courage, and teamwork of every Rössing employee and contractor, and I am proud of the foundation we are building for the future,” Coetzee said.
