Orano Mining Namibia says it is evaluating potential next steps, which could include restarting operations, at its Trekkopje Mine following the recent surge in uranium spot prices.
The mine, located in the Erongo Region, was initially placed under care and maintenance in 2013, with the launch postponed indefinitely, subject to the future recovery of uranium prices.
Orano Mining Namibia Spokesperson Christine de Klerk said in response to the market conditions, the Trekkopje Project is periodically under review to check if the conditions to put the mine into production are met or not.
Despite this, she added that “the current spot price of uranium is one of the criteria, but other considerations need to be taken into account.”
“The resurgence in uranium spot prices is seen as positive news for the uranium mining industry around the world, reflecting the renewed interest in nuclear energy as a viable solution in the fight against climate change. While the spot market represents only a minor part of uranium transactions, Orano is carefully evaluating various factors, including market conditions and the current uranium price, which has reached close to US$100 per pound, the highest since 2008.â€
“As for now, we can say all options are on the table, and should the restart of Trekkopje mine be considered opportune, we will communicate this decision to all our stakeholders,” added de Klerk.
The company, which has been actively present in Namibia through the Erongo Desalination Plant, sees it as a valuable asset capable of covering the potential restart of the Trekkopje Project and other uranium initiatives in the central coast region.
“In November 2023, Orano achieved a significant milestone with the Erongo Desalination Plant reaching an accumulated water production of 100 million m³, operating continuously since 2010,” said De Klerk
The plant’s design allows for capacity expansion from the current 20 million m³ to 45 million m³ per year.
Addressing the potential supply deficit of approximately 35 million pounds per year projected over the next decade, Orano is evaluating how to contribute to meet this demand.
Specific initiatives are expected to expedite the production process of the uranium mine revival, aligning with market conditions and global uranium requirements.
The uranium mining sector in Namibia is poised for a remarkable turnaround, with growth projected to reach 14.8% in 2023 and an additional 5.2% in 2024, according to the latest Bank of Namibia data.- miningandenergy.com.na
