During 2023, Rössing Uranium produced 6.4 million pounds of uranium ore concentrate, also known as yellowcake, and sold 6.9 million pounds of the precious resource.
Yellowcake, or uranium oxide, is created after uranium ore has been chemically processed by being mined and milled.
This fine powder is then shipped to nuclear refineries for further processing after which it is used as fuel in nuclear reactors.
Out of Rössing’s 2023 production, approximately 1.8 million pounds of yellowcake was shipped to western converters, and sold to customers in North America, Asia (excluding China) and Europe, Middle East and Africa.
Rössing Uranium has been a feature of the domestic economy for close to 48 years.
Figures contained in the Rössing Uranium 2023 Sustainability Report, which was launched this week, further indicate that a total of 3.7 million pounds of yellowcake was shipped to China, while an additional 1.4 million pounds was sold to non-utility customers (traders and funds) on the spot market, capitalising on the sudden surge in uranium prices this year.
A Rössing statement added the Erongo mine has benefitted from the spot prices under China National Nuclear Corporation (CNNC) sales arrangement.
Meanwhile, Rössing Uranium’s board officially approved extending the life-of-mine to 2036, cementing the longevity of the operation, and formally adopted King IV as a Corporate Governance Code.
At the launch of the Sustainability Report on Tuesday evening, Rössing Uranium’s managing director Johan Coetzee provided an overview of 2023 performance and his expectations for the future of the mine.
The mine’s total revenue earned during 2023 amounted to N$6.48 billion, compared to N$4.84 billion in 2022, with net profit after tax from normal operations of N$1.3 billion, compared to N$840 million in 2022.
This resulted in declared dividends of N$177 million, which is a massive increase of the N$50 million dividends declared 2022.
Following the extension of the Life of Mine, and in the context of increasing uranium oxide prices, Rössing’s long-term strategy is now focussed on identifying an economic pathway for achieving higher production rates from new sources of ore as well as extending the mine’s life beyond 2036.
“The potential for further expansion of the current SJ Pit is limited, and the focus is therefore on development of a new open pit within the mining lease. The objective is to commence before 2030 and supplement feed from the SJ Pit to achieve higher production rates,” Coetzee stated.
“2024 will be another important year for Rössing Uranium as we begin with substantial pushback work for the Phase 4 extension, while evaluating new opportunities that could potentially extend the life-of-mine beyond 2036,” he added.
Rössing’s total spend for goods and services’ operations during 2023 increased to N$3.88 billion, compared to N$3.42 billion in 2022.
Rössing’s spend with local suppliers amounted to N$2.86 billion during 2023, compared to N$2.54 billion in 2022.
Some N$487 million was spent with South African suppliers, representing 12% of the mine’s procurement expenditure, while it spent N$531 million with international suppliers, representing 14% of total expenditure.
“As the minister responsible for mines and energy, I am impressed by the dedication, innovation and resilience of the mining industry as it continues to play a vital role in our country’s economic growth and development,” said mines minister Tom Alweendo at the launch of the report when he commended the Rössing Uranium team and shareholder China National Nuclear Corporation.
“The presence of the high-level delegation from China presents here this evening, led by Mr Zhang Kai, vice president of China National Nuclear Corporation (CNNC) speaks volumes to CNNC’s intend and vision for Rössing Uranium, and the uranium and nuclear energy industry at large,” he said.
He continued that renewed interest in nuclear energy is a positive development for Namibia as a notable global uranium producer.
“The uranium prices surpassed the US$100 per pound mark. If one combines the uranium market conditions with the emerging green hydrogen industry, Namibia can surely become a regional powerhouse,” he said.
Also speaking at the launch, CNNC’s Kai explained the corporation is the main entity of China’s nuclear science and technology industry.
It is also one of the largest clean energy suppliers in China.
CNNC participates in a complete nuclear energy industry chain, ranging from uranium resources exploration, mining and nuclear fuel processing to nuclear power plant design, construction and operation to nuclear technology application and spent fuel reprocessing.
As such, he described Namibia as one of the most important investment destinations for CNNC.
“While operating Rössing Uranium, CNNC will actively expand its business in Namibia, and endeavour to expand new space for cooperation in the fields of nuclear energy, new energy, mineral resources and nuclear technology application, etc,” said Kai.
Looking forward, he said, CNNC will continue to create more value and contribute to Namibia’s sustainable economic and social development.