Nghiinomenwa-vali Erastus
Namibia contributed 12% last year to the world’s primary production of uranium oxide, coming third after Canada and Kazakhstan at top.
Not specific however, the China National Uranium Corporation owned Rössing Uranium’s latest report has indicated that there are now 432 operable units with roughly 389 GWe in capacity in 33 countries as of early December 2022.
The report highlighted that they remain optimistic about the role uranium will play in the future energy mix, with nuclear energy being able to provide a consistent base-load, as opposed to many other renewable energy sources.
Recently, the mine shareholders agreed to extend the life of the mine.
According to the world’s pre-eminent nuclear fuel market information and analysis company, UxC, it is anticipated that global nuclear energy will reach 34 countries with 441 reactors (~402 GWe net) in 2030, and 35 countries with 512 reactors (~489 GWe net) in 2035.
UxC also highlighted a widening market for the yellow cake.
In the forecast scenario provided in the report, most of the growth by 2035 is anticipated to come from Asia (especially China); however, sizable nuclear gains are also envisioned in Eastern Europe, Africa, and the Middle East.
The company add that the ongoing geopolitical conflict between Russia and Ukraine, secondary demand from investors will remain a key factor in shaping the near-term market outlook.
Over the long run, the status of Japan’s reactor restart and the growth of China’s nuclear programme is expected to continue to affect the global nuclear fuel markets.
On the supply side, the Rössing team explained that as primary production and secondary supplies rebalance with market demand, improved market conditions will contribute to sustainable upward price momentum in the mid-2020s.
Rössing contributed approximately 4.4% to world primary production during 2022, with Namibia now being the 3rd largest primary producer of U3O8 globally, after Kazakhstan which continues to dominate the market from a supply side, followed by Canada.
In 2022, Rössing produced 5.9 million pounds U3O8, but only sold 5.7 million pounds.
A total of 2.6 million pounds were shipped to western converters and sold to customers in North America, Asia (excluding China) and Europe, Middle East and Africa.
A total of 1.3 million pounds were shipped and sold to China.
An additional 1.8 million pounds were sold to non-utility customers (traders and funds) on the spot market, capitalising on the sudden price spike during the year.
The Rössing team also indicated that production in 2022 was lower when compared to 2021 as a total of 2,659 metric tonnes of uranium oxide was produced, compared to 2,882 metric tonnes in 2021.
A total of 16,6 million metric tonnes of material (2021: 20,7 million metric tonnes) was mined from the open pit and 8,97 million metric tonnes (2021: 9,622,798 metric tonnes) of ore were milled.
With waste and low-grade material being 7.4 million tonnes, equating to a strip ratio of 0.81.
The Rössing report further indicated that 0.2 million tonnes of waste was dumped in-pit.
Optimistically, “we anticipate the strip ratio to be below 1.0 going forward, as the pit gets deeper” Rössing pointed out.
The company said a lower-than-expected crushed production of 9.0 million tonnes (6% less than 2021) and a 3% improvement in plant feed grade led the mine to achieve 8% lower uranium production for the year.
The report shows that revenue generated last year was higher than 2021 by 14%, despite sales volumes being 14% lower than the previous year.
Total revenue amounted to N$4.84 billion compared to N$4.26 billion in 2021.
Net profit after tax from normal operations of N$840 million (2021: N$193 million), which also resulted in the company declaring a total interim dividend of N$49.7 million (2021: N$0).
For the whole of 2022, the uranium spot price has been above US$43, reaching more than US$50 4 times.
Between 2018 and 2022, the mining giant’s expenditure on local suppliers amounted to N$10,9 billion. Rössing has spent more than 75% if not 80% of its total procurement on local supply since 2018. Email: erastus@thevillager.com.na
