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High uranium prices drive Rossing to N$840m after tax profit

June 05, 2023

Rössing Uranium recorded an after-tax profit of N$840 million in 2022, an increase from N$193 million in the previous year, according to the company's latest sustainability and performance report.

During this period, the total revenue earned amounted to N$4.84 billion, compared to N$4.26 billion in 2021.

"The good performance is owed to higher uranium prices, which were 14% higher than in 2021," said Managing Director Johan Coetzee.

Rossing produced 16.6 million tonnes of uranium oxide during the period, although this was less than the amount produced in 2021.

"A total of 16.6 million tonnes was mined, compared to 20.7 million tonnes in 2021, with waste and low-grade ore totaling 7.4 million tonnes. Rössing contributed approximately 4.4% to the world's primary production during 2022, and Namibia is now the third-largest primary producer of U3O8 globally, after Kazakhstan," he said.

Coetzee alsohighlighted how the construction of a 60,000 cubic meter water storage facility, costing N$100 million, had enabled the company to continue operating during periods of high sulfur bloom in the Atlantic Ocean, which caused interruptions in the fresh water supply due to the stoppage of the Orano desalination plant.

"We have experienced some breaks in the past when the Orano desalination plant failed, and NamWater could not keep up with supplying enough water. Water shortage is widespread in Erongo, which is why we have invested to ensure operational security and avoid disruptions," he said. 

The Orano Desalination Plant is a seawater desalination plant that currently supplies the bulk of water consumed in the Erongo region.

Mines and Energy Deputy Minister Kornelia Shilunga commended Rössing for building a resilient business despite the volatile operating environment, including inflation and geopolitics.

Shilunga expressed dissatisfaction with the limited progress made in utilizing local procurement, stating that it was unsatisfactory in supporting entrepreneurs to contribute to the economy and provide employment. 

This is despite the company stating that it has spent N$2.5 billion on local procurement.

Rossing currently has 901 employees, with 98% being locals.

The uranium miner declared and paid an interim dividend of N$49.7 million for the period under review.. 

China National Uranium Corporation Limited (CNUC) is the majority shareholder in Rössing Uranium following the sale of Rio Tinto's 68.62% shareholding in 2019.

CNUC is a subsidiary of the state-owned China National Nuclear Corporation Limited (CNNC).

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Last modified on Wednesday, 07 June 2023 20:55