By Staff Reporter
Moscow, Russia, July 19 – Rosatom, the Russian state nuclear corporation, has unveiled its plans to commence uranium mining operations in Namibia by 2029. The company aims to complete exploration work in 2026 and initiate mining activities with an anticipated mining period exceeding 25 years.
Rosatom is set to invest up to $500 million in the project, which is expected to yield an annual output of approximately 3,000 tonnes over the course of 25 years. To conduct the exploration processes in Namibia, the company will leverage its uranium mining holding, Uranium One Group, specifically through its entity Headspring Investments. Namibia is known to possess around 7% of the world’s uranium reserves.
The state-owned corporation has expressed its commitment to job creation in the southwest African region, with direct employment opportunities for approximately 600 individuals. Additionally, the project is predicted to contribute to Namibia’s GDP growth by 1-2% annually.
Rosatom has also announced its pilot mining and processing venture in Tanzania, which will span from 2023 to 2025. The Mkuju River project, focused on the Nyota deposit, holds substantial resources, with 152 million tonnes of ore in reserve, making it one of the world’s largest deposits. The initial stage of production is projected to yield 5 tonnes of yellowcake, a uranium concentrate powder, with an eventual target of 3,000 tonnes per year. In 2022, Rosatom mined approximately 7,000 tonnes of uranium, with 4,500 tonnes produced by Uranium One Group.
Beyond its uranium mining activities, Rosatom also maintains a dominant market presence as the world’s largest foreign nuclear power plant constructor and operator, with a 74% market share. The corporation is involved in cooperative projects and investments in various regions, spanning from Latin America to East Asia, contributing to the construction of 37% of nuclear reactors worldwide.
Implications for Namibia and Tanzania
Rosatom’s announcement bears significant implications for both Namibia and Tanzania, countries endowed with substantial uranium reserves.
For Namibia, the project promises job creation and economic growth. Direct employment opportunities for approximately 600 individuals, coupled with indirect job creation in the construction and service sectors, are anticipated. The project is also expected to bolster Namibia’s GDP by 1-2% annually.
In Tanzania, the venture offers a much-needed injection of foreign investment. Rosatom’s commitment to invest up to $500 million in the project signifies a considerable boost to the Tanzanian economy. The project is also expected to generate employment opportunities, with around 1,000 individuals directly employed.
Assessing Environmental and Economic Risks
As with any mining project, the uranium mining operations in Namibia pose environmental risks, particularly given its location in the delicate Namib Desert ecosystem. Potential pollution of the desert and its wildlife is a concern.
Rosatom asserts its commitment to mitigating environmental risks by utilizing advanced environmental technologies and closely monitoring the project’s impact to prevent environmental damage.
Nonetheless, environmental groups have raised apprehensions, emphasizing the potentially significant impact on the Namib Desert and its wildlife.
From an economic perspective, the uranium mining project in Namibia is a long-term investment with expected production not commencing until 2029. There is a risk of project delays or cancellations, which would have substantial implications for the Namibian economy. Additionally, fluctuations in uranium prices could affect project profitability.
Despite these risks, the Namibian government maintains an optimistic outlook, considering the project a substantial opportunity to diversify the nation’s economy and generate employment opportunities.
– Namibia Daily News
