Uranium output down on poor weather

NAMIBIA’S uranium production fell in the first ten months of 2011 compared with the previous year due to poor weather, but output is expected to rise as expansion projects come online, Capricorn Investment Holdings (CIH) has said.

Namibia produced 7,3 million pounds of uranium between January and October, compared with just under ten million pounds in the same period of 2010, CIH said in its latest Mineral Update Report.’Low levels of production in 2011 can be attributed to poor weather in the early part of the year, meaning mines had to be closed for prolonged periods, as well as mine stripping to reach the ore body at Rössing, meaning that production levels are abnormally low,’ said CIH.Rio Tinto’s Rössing mine and Australian miner Paladin Energy are the two operating producers, although other companies are developing projects that are expected to boost output in the near term.Paladin also recently completed the expansion of its Langer Heinrich mine, which is expected to raise annual output at that mine to 5,2 million pounds from 3,7 million.Up until October, Namibia exported nine million pounds of uranium, on par with the corresponding period in 2010.’Despite the significant drop in uranium process following the Fukushima Daiichi disaster in March, prices for the year remain considerably up on those of 2010, which may, to some extend, compensate for lower production and sales,’ CIH said.Namibia’s diamond production in the third quarter of 2011 was 389 602 carats, up from 208 242 carats in the second quarter. Output fell, however, when compared with production of 406 688 carats in the same quarter the previous year.’Global demand for gemstones has taken a knock amidst uncertainties in the euro zone, coupled with the fact that Namibia is approaching its maximum [short run] potential production,’ said CIH.’Mining companies to date have not been willing to commit to significant capital injections which are needed to upgrade infrastructure and update mining technology, thus this trend seems likely to continue.’CIH said a month-long strike at Namdeb, the country’s main diamond producer and a 50-50 joint venture between the Namibian government and De Beers, in October further affected diamond output with a loss of 26 000 carats. – Own report and Nampa-Reuters