Roessing looks to 2021 and beyond

ROESSING Uranium intends to extend its operations to 2021 and beyond with an extension project costing more than N$830 million.

This is quite a turnaround from the mine’s stance in 2005, when it announced that the mine might be closed by no later than 2009 due to prevailing poor uranium prices and exchange rates. The General Manager of Corporate Services at Roessing Uranium Limited, Rehabeam Hoveka, said even at that low point the company was investigating options to extend the life of the mine should there be a major comeback for uranium in the world market, which there was.An increase from about US$7 per pound of uranium oxide to about U$20 encouraged the mine to extend its prospective life to 2016.Since then there has been a major boom in uranium oxide prices, and according to Hoveka, this year’s price has shot up to as high as U$133 per pound.On Monday it was at U$105 per pound.Hoveka said the growing nuclear power industry and the increase in the demand for uranium have resulted in a notable long-term market increase.Because of these prospects, the mine is confident to extend its operations to 2021.”Roessing was in a position to capture opportunities to increase its market share and to achieve production growth and expansion options for the mine,” he said.He said the extension project would be focusing on enlarging the current open-pit operations and upgrading the processing plant.Heavy mining equipment such as haul trucks and shovels are also being acquired as part of the extension project.Hoveka said the planned production target for this year is 4 000 tonnes of uranium oxide, well on the way to achieving the full prospected capacity of 4 500 tonnes a year.According to him, a Life-of-Mine Options Opportunity Analysis (Lomoa), which focuses on various areas that would help the mine to expand and improve its operations, is currently in progress.There are three key objectives that the company wants to achieve by 2011.One of these involves the extension of mining activities one kilometre to the east of the current operation, an area seen as a supplementary source of uranium.Another objective is the acquisition of a radiometric ore-sorting plant that will detect uranium-bearing ore and reject waste rock.The third objective involves the construction of a new sulphur-burning acid plant and an upgrade of the on-site acid storage facility to store imported and produced acid.Hoveka also touched on some of the mine’s 2006 performance highlights.After three years of not being able to declare profits, the mine’s sales in 2006 allowed it to contribute N$158 million to the country’s tax revenue.He said Roessing expected to pay N$667 million in tax this year.Furthermore, he said Roessing was aiming to become the best corporate citizen in Namibia.It has spent N$8,8 million on social corporate investments in Namibia and an additional N$15 million was donated to its social investment arm, the Roessing Foundation.Roessing currently has 1 100 employees, of which more than 96 per cent are Namibian and the male to female ratio is eight to one.The General Manager of Corporate Services at Roessing Uranium Limited, Rehabeam Hoveka, said even at that low point the company was investigating options to extend the life of the mine should there be a major comeback for uranium in the world market, which there was.An increase from about US$7 per pound of uranium oxide to about U$20 encouraged the mine to extend its prospective life to 2016.Since then there has been a major boom in uranium oxide prices, and according to Hoveka, this year’s price has shot up to as high as U$133 per pound.On Monday it was at U$105 per pound.Hoveka said the growing nuclear power industry and the increase in the demand for uranium have resulted in a notable long-term market increase.Because of these prospects, the mine is confident to extend its operations to 2021.”Roessing was in a position to capture opportunities to increase its market share and to achieve production growth and expansion options for the mine,” he said.He said the extension project would be focusing on enlarging the current open-pit operations and upgrading the processing plant.Heavy mining equipment such as haul trucks and shovels are also being acquired as part of the extension project.Hoveka said the planned production target for this year is 4 000 tonnes of uranium oxide, well on the way to achieving the full prospected capacity of 4 500 tonnes a year.According to him, a Life-of-Mine Options Opportunity Analysis (Lomoa), which focuses on various areas that would help the mine to expand and improve its operations, is currently in progress.There are three key objectives that the company wants to achieve by 2011.One of these involves the extension of mining activities one kilometre to the east of the current operation, an area seen as a supplementary source of uranium.Another objective is the acquisition of a radiometric ore-sorting plant that will detect uranium-bearing ore and reject waste rock.The third objective involves the construction of a new sulphur-burning acid plant and an upgrade of the on-site acid storage facility to store imported and produced acid.Hoveka also touched on some of the mine’s 2006 performance highlights.After three years of not being able to declare profits, the mine’s sales in 2006 allowed it to contribute N$158 million to the country’s tax revenue.He said Roessing expected to pay N$667 million in tax this year.Furthermore, he said Roessing was aiming to become the best corporate citizen in Namibia.It has spent N$8,8 million on social corporate investments in Namibia and an additional N$15 million was donated to its social investment arm, the Roessing Foundation.Roessing currently has 1 100 employees, of which more than 96 per cent are Namibian and the male to female ratio is eight to one.