TSUMEB – The Minister of Mines and Energy, Isak Katali, on Friday launched the N$800 million Tschudi mining project under Weatherly International on the site the open pit mine is to be constructed some 13 kilometers north from Tsumeb.
The company shut down its operations following the global recession, which forced metal prices including copper to shrink, and it subsequently placed all mining operations under care and maintenance during 2008.
Katali expressed relief at the fact Weatherly weathered the storm and raised significant capital to return to operations by re-opening Tschudi mine.
“We are glad that despite challenges encountered since the 2008 downturn, Weatherly stayed the course in commitment towards its Namibian operations. The challenge for the country is to ensure that we maximize the value we derive from our mineral resources throughout the mining value chain,” he said.
The Chief Executive Officer of Weatherly International, Rod Webster, said it will use heap leaching and solvent extraction technology to process the copper ore before passing to an electro-winning refinery that will produce the projected 17 000 tonnes per annum of pure refined copper.
Webster noted that the realization of the Tschudi project was a global effort that mobilized international funding as well as mining specialist from Beijing, process specialists and project managers from both South Africa and Australia.
“We worked on this project for five years before it came to fruition through global efforts. The project will employ 800 people during the construction phase and will employ 600 when operations commence in the next 16 months,” he said.
It will be the first time in Namibia that this high level of mining value-addition for copper will be achieved, creating final-product copper suitable for potential downstream manufacturing activities.
As a result, the refined copper product from Tschudi will be exported at a value-addition stage even beyond that using acid that will be sourced from Dundee Precious Metals’ smelter operations at Tsumeb that is described as an excellent example of constructive upstream value addition within the mining sector.
Meanwhile, Katali urged the company to copy the example of B2 Gold mine near Otavi to address challenges related to workers’ accommodation.
He said that government is not in support of providing on-site housing quarters for workers instead of constructing proper brick structures in local authorities.
“I saw a perfect, suitable example when I visited the gold mine two days ago, workers should be assisted to own their houses. Houses constructed at mining sites are usually abandoned when mining activities cease due to unforeseen circumstances and as such I am directing you to build houses for workers in towns,” said the mines and energy minister.
The minister also commended Weatherly for providing 10-percent equity participation for Namibian partners saying this was positive proof that government’s vision of increased mineral beneficiation combined with equity participation is beginning to take shape and will happen within the context of sustainable development.
Katali appealed to Weatherly to consider empowering local people and entrepreneurs from Tsumeb first before creating opportunities for others in order to maintain positive relations with local and regional leaders.
“You should however also create a window to empower other stakeholders outside Tsumeb and the Oshikoto region in order to become visible to the rest of the country. Your company needs to market itself beyond your operational jurisdiction by benefitting as many Namibians as possible because the minerals in this country belong to all Namibians,” stressed the minister.
He urged all parties involved, being contractors, consultants, politicians and public servants to work with the community collaboratively to complete the project on time, on budget and to acceptable safety, environmental and quality standards.
Oshikoto Governor, Penda Ya Ndakolo said the commissioning would complement government’s development agendas committed through NDP 4 aimed at realizing the aspirations of the Namibian people towards economic emancipation.
“I received good cooperation from your company hence our sympathetic position towards your efforts to revitalize the Tschudi operations, which we are glad to celebrate jointly today. My office will remain at your service, feel welcome to consult more,” reassured the governor.
Erongo Governor Cleopas Mutjavikua and Weatherly Country Managing Director Graig Thomas were among the dignitaries that attended the ceremony.
By Engel nawatiseb