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07:35Last update on: 13 Aug 2013
The Namibian
Tue 13 Aug 2013


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Areva, NamWater agree on desalinated water price
Chamwe Kaira
AREVA Resources Namibia, the State bulk water supplier NamWater and Swakop Uranium Mine, Rossing Uranium Mine and Langer Heinrich Uranium Mine will next week sign an interim agreement on the supply of water from Areva’s desalination plant in the Erongo Region.
The plant was opened in 2010 and it is the first sea-water purification plant in the country. It has a capacity of 20 million cubic metres while the demand for water in the whole Erongo Region is 13 million cubic metres. The price of the water has been a bone of contention, with mining companies, NamWater and municipalities at the coast saying it was being overpriced.
Areva General Manager Hilifa Mbako said in an interview yesterday that the agreement was supposed to have been signed yesterday but has been moved to next week. Mbako said a long term agreement is also being negotiated at the same time.
“We have agreed on the 20 clauses. The interim agreement will have no material effect on the long-term agreement,” Mbako said. Areva will sell the water to NamWater, which will in turn will distribute it to the mining companies, Mbako said.
Mbako denied that the delay in reaching the agreement was due to Areva’s overpricing of the water from the plant. He refused to disclose the price of the water.
“We have signed a confidentiality agreement with NamWater,” he said. He however said desalinated water costs more than underground water and water from rivers. Another factor that has affected the price is the fact that this is the first time in Namibia that a desalination plant has been set up.
On the Trekkopje Mine development, which Areva has put on care and maintenance, Mbako said this situation will only change when the price of uranium improves. The plant is located 30 km north of Swakopmund on the Atlantic coast. Mbako said the project is 80% complete.
The Trekkopje mining project is one of the the largest direct foreign investment in Namibia with a forecast average annual production of 3,000 tons of uranium.
In October last year, Areva said it was going to delay the start of the US$1 billion Trekkopje project until market conditions improve.
“Considering both the continued decrease of uranium prices coupled with the investments yet to be made on site, AREVA has no other option than to postpone the launch of the Trekkopje mine,” the company said at that time.
The nuclear disaster at Fukushima in Japan in March 2011, led to the price of uraniumdropping with some countries questioning the safety and viability of nuclear energy and some suspending their plans to build new plants altogether. It will cost the company US$10 million a year to keep the project under care and maintenance. When in production Trekkopje is expected to produce 3,000 tonnes of uranium oxide per year.
The plant was opened in 2010 and it is the first sea-water purification plant in the country. It has a capacity of 20 million cubic metres while the demand for water in the whole Erongo Region is 13 million cubic metres. The price of the water has been a bone of contention, with mining companies, NamWater and municipalities at the coast saying it was being overpriced.
Areva General Manager Hilifa Mbako said in an interview yesterday that the agreement was supposed to have been signed yesterday but has been moved to next week. Mbako said a long term agreement is also being negotiated at the same time.
“We have agreed on the 20 clauses. The interim agreement will have no material effect on the long-term agreement,” Mbako said. Areva will sell the water to NamWater, which will in turn will distribute it to the mining companies, Mbako said.
Mbako denied that the delay in reaching the agreement was due to Areva’s overpricing of the water from the plant. He refused to disclose the price of the water.
“We have signed a confidentiality agreement with NamWater,” he said. He however said desalinated water costs more than underground water and water from rivers. Another factor that has affected the price is the fact that this is the first time in Namibia that a desalination plant has been set up.
On the Trekkopje Mine development, which Areva has put on care and maintenance, Mbako said this situation will only change when the price of uranium improves. The plant is located 30 km north of Swakopmund on the Atlantic coast. Mbako said the project is 80% complete.
The Trekkopje mining project is one of the the largest direct foreign investment in Namibia with a forecast average annual production of 3,000 tons of uranium.
In October last year, Areva said it was going to delay the start of the US$1 billion Trekkopje project until market conditions improve.
“Considering both the continued decrease of uranium prices coupled with the investments yet to be made on site, AREVA has no other option than to postpone the launch of the Trekkopje mine,” the company said at that time.
The nuclear disaster at Fukushima in Japan in March 2011, led to the price of uraniumdropping with some countries questioning the safety and viability of nuclear energy and some suspending their plans to build new plants altogether. It will cost the company US$10 million a year to keep the project under care and maintenance. When in production Trekkopje is expected to produce 3,000 tonnes of uranium oxide per year.
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