Rossing in proposals to extend mine life to 2017

ROSSING Uranium Limited has been engaged in the preparation of a comprehensive investment proposal to extend the production life of the mine through to approximately 2017.

In a press release issued recently, managing director Michael Leech said in accordance with the Rio Tinto review and approval process, Rossing had submitted the proposal for a thorough review of both technical and financial aspects. In 2001, Rossing contributed N$1 billion to the economy, which was 2,5 per cent of Gross Domestic Product and 10 per cent to Namibia’s export earnings, and if mining operations are extended to 2017 this would generate a further US$1 billion (N$6,6 billion).Last year, however, the company made a loss of about N$140 million, despite an upward trend in uranium oxide spot prices during 2003 and 2004 with Rossing mainly attributing its losses to the strong rand/N$ against the US dollar.Rossing is currently assessing the outcome of the technical review, which had identified several elements that would require additional refinement before the proposal is given further consideration by the Rio Tinto Investment Committee.A preliminary assessment of the work required indicated that the technical items identified in the review could be solved in a reasonable timeframe to yield a technically sound project.With the extension of the mining operation, the employment numbers at Rossing are expected to increase to 930 from the current 820.Rossing is one of the largest open pit uranium mines in the world, and through the production of uranium oxide serves the world energy industry.In 2001, Rossing contributed N$1 billion to the economy, which was 2,5 per cent of Gross Domestic Product and 10 per cent to Namibia’s export earnings, and if mining operations are extended to 2017 this would generate a further US$1 billion (N$6,6 billion).Last year, however, the company made a loss of about N$140 million, despite an upward trend in uranium oxide spot prices during 2003 and 2004 with Rossing mainly attributing its losses to the strong rand/N$ against the US dollar.Rossing is currently assessing the outcome of the technical review, which had identified several elements that would require additional refinement before the proposal is given further consideration by the Rio Tinto Investment Committee.A preliminary assessment of the work required indicated that the technical items identified in the review could be solved in a reasonable timeframe to yield a technically sound project.With the extension of the mining operation, the employment numbers at Rossing are expected to increase to 930 from the current 820.Rossing is one of the largest open pit uranium mines in the world, and through the production of uranium oxide serves the world energy industry.