Rossing exceeds 2008 production target

RIO Tinto’s Rössing Uranium mine increased production by 25 per cent in 2008, exceeding its target for the year, according to the mine’s 2008 Stakeholder’s Report launched on Thursday.

Production of uranium oxide increased from 3 046 tonnes in 2007 to 4 108 tonnes in 2008.’The year under review closed off on a positive note for Rössing despite the uncertainties caused by the global financial crisis and the economic slowdown that characterised the business order worldwide,’ Rössing Uranium Managing Director, Mike Leech, states in the report.The production increase is the highest since the mine’s inception in 1976. According to the report, the mine is on track to reach full production capacity, of 4 500 tonnes, by 2012.Rio Tinto Uranium Managing Director, Clark Beyer, states in the report that the market outlook for 2009 is strong as uranium supply struggles to meet demand.According to him, global production is forecast to increase considerably over the next five years, but recent events have emphasised the difficulties of developing new projects.’A weaker uranium price (since the last quarter of 2007 and throughout 2008), the global credit crisis and, in particular, a lack of funding will restrict the development of many junior operations and force primary producers to reconsider their plans,’ he states.He states that Rössing Uranium’s success could be partly attributed to prevailing market conditions and the strong relationships with long standing customers that stretch back over 30 years.Rössing’s General Manager for Corporate Services, Jerome Mutumba, said at the official launch of the report on Thursday that Rössing incurred expenses of nearly N$1 billion, related to Government and state owned enterprises, while almost N$1,45 billion was paid to Namibian companies for the supply of goods and services.Profit after tax for 2008 was N$1,23 billion compared to N$979 million in 2007.a