Uranium in Namibia

 (updated 22 January 2012)

• Namibia has two significant uranium mines capable of providing 10% of world mining output.  
• Its first commercial uranium mine began operating in 1976.  
• There is strong government support for expanding uranium mining and some interest in using nuclear power.  

 Uranium was discovered in the Namib Desert in 1928, but was not until intensive exploration got under way in the late 1950s that much interest was shown in Rossing. Rio Tinto discovered numerous uranium occurrences and in 1966 took the rights over the low-grade Rossing deposit, 65 km inland from Swakopmund.

Two other significant deposits found in early exploration were Trekkopje, a calcrete deposit 80km NE of Swakopmund and near Rossing, and Langer Heinrich, a calcrete deposit discovered in 1973 by Gencor, 80 km inland from Walvis Bay and 50 km southeast of Rossing.  

In April 2011 the Namibian government announced that its state-owned mineral exploration company, Epangelo Mining Ltd, would have exclusive control over new strategic minerals developments, including uranium. However, it appears that this does not apply retrospectively or amount to nationalisation of existing mines or leases, though explicit definition is awaited. Paladin and Kalahari have both expressed confidence that their assets are not at risk of expropriation. A task force was formed in May 2010 by Epangelo and Russia's ARMZ, which briefly seemed to threaten existing developments, but the government gave strong reassurance then. 

** in addition to reserves, see above.  
 

Rossing 

Rossing Uranium  Ltd was formed in 1970 (now 68.6% Rio Tinto, 15% Iran, 10% Industrial Development Corporation of South Africa, 3% Namibian government). The company has mined the deposit from 1976 as a large-scale open pit in very hard rock. Rossing has nominal capacity of 4000 tU/yr and to the end of 2011 had supplied 101,123 tU.  In 2011 it produced 2641 tU (2010: 3083 tU, 2009: 3519 tU, 2008: 3449 tU, 2007: 2582 tU, 2006: 3067 tU).

Rossing's reserves at the end of 2009 were 7650 tU proven, and 51,800 tU probable, at 0.031% U in ore (calculated without allowing for 85% mill recovery). Reserves increased slightly in 2010.  Its uranium is sold to power utilities in Central Europe, North America and South-East Asia including China.

After three years evaluation it was decided in December 2005 to invest US$ 112 million to further develop the Rossing mine, extend its life to 2016 and increase the output to 3400 tU/yr. In 2007 Rio Tinto proposed a further expansion to 3800 tU/yr from 2012 and extending mine life. The first phase extended mining in 2008 to a new small orebody, introduces radiometric ore sorting to beneficiate material from stockpiled coarse ore, and commissioned a new 1200 t/day sulfur-burning acid plant also producing 9.5 MWe net of electricity. Phase 2 defined in 2008 includes heap leaching of low-grade ore and development of other small satellite orebodies with different mineralisation and hence needing a new treatment plant for them.  For Rossing, 2007 was a year of consolidation, preparing for increased production. Unit costs therefore rose to US$ 38 per pound ($99/kgU) from $22 ($57/kgU) in 2006. In 2008 production was 2370 tonnes U.

Langer Heinrich 

 Paladin's Langer Heinrich is 50 km south-southeast of Rossing, in the Namib Park, and 80 km from the coast. It was bought by Paladin Resources Ltd (now Paladin Energy) in 2002. The open pit mine commenced operation late in 2006 with 1000 tU/yr capacity. The ore occurs over 15 km in a palaeochannel system, some 50m deep. Some vanadium is present in the carnotite mineral. There is a conventional hard rock mill with an alkaline leaching circuit.

Production in 2011 was 1437 tU (2010:1419 tU, 2009: 1108 tU, 2008: 919 tU).  Stage 2 development boosted production capacity to 1430 tU/yr in 2009, and Stage 3 will take production to 2000 tU/yr from late 2011 at a cost of US$ 100 million.  A heap leach to produce about 400 tU/yr from low-grade ore by mid 2014 is proposed for stage 4, in moving towards 3850 tU/yr production level.  AMEC Minproc is undertaking a definitive feasibility study on this. 

Reserves are 46,500 tU at 0.01%U cut-off (JORC and NI 43-101 compliant) plus 5100 tU in stockpiles.  In 2010 most of the 2008 inferred resources were upgraded with infill drilling.  A further 12,000 tU will end up in low-grade stockpiles at the end of mining, and may be recovered then.

Husab:  

Extract Resources Ltd based in Perth has completed a definitive feasibility study demonstrating the technical and economic viability of mining the Rossing South orebody about 5 kilometres south of the Rossing mine and 45 km northeast of Walvis Bay port.  In June 2011 it announced that its measured resource for Zones 1 & 2 had increased to 32,000 tU averaging 0.043%U, its indicated resource for Zones 1 & 2 had increased to 105,500 tU at 0.037%U (JORC and NI 43-101- compliant). Inferred resources in Zones 1 to 5 are 50,000 tU averaging 0.029%U. This comes to 188,000 tU averaging about 0.035%U proven so far. This is all with 100 ppm cut-off and still open along strike and dip. It is evidently the highest grade granite-hosted uranium deposit in Namibia, and it is an extension of the Rossing stratigraphy. So far, only 10 km of 15 km strike on the company's lease – contiguous with Rossing - has been drilled. It lies under a shallow (50m) alluvial sand cover.

It is part of the company's Husab uranium project, which includes the Ida Dome 20 km south, with 9600 tU inferred resource at 0.02% (contiguous with Reptile's Ongalo). The definitive feasibility study involved the project's zones 1 & 2, and showed a production cost of US$ 32/lb U3O8 including royalties, marketing and transport, with capital cost of $1.66 billion. The study envisages mining of 15 million tonnes of ore per year from two separate open pits to feed a processing plant producing 5770 tU per year.  The Ministry of Mines and Energy approved the mining licence in November 2011, and in January and July 2011 the Ministry of Environment and Tourism gave environmental approval for the mine and related works to subsidiary Swakop Uranium.  The company plans to start production in 2014 and reach full capacity of 5700 tU/yr in 2015.

Kalahari Minerals PLC owns 42.74% of Extract Resources.  In March 2010 Itochu Corp* bought a 14.94% stake in Kalahari for $92 million, and in May Hong Kong-listed APAC Resources bought 7.1% of Kalahari for $44.6 million.  In March 2011 China Guangdong Nuclear Power UraniumResources Co (CGNPC-URC) notified a possible $1.22 billion cash offer for the whole of Kalahari Minerals PLC, but this was withdrawn in May. It was then renewed, and in December a GBP 632 million (US$ 984 million) bid by Taurus Minerals, a Hong Kong company 60% owned by CGNPC-URC and 40% by the China-Africa Development Fund, was unanimously recommended by Kalahari directors. If Taurus acquires more than 50% of Kalahari it will make a downstream cash offer for Extract shares, said to be worth $2.2 billion.*

* Extract media release 9/12/11 with detail of Australian Stock Exchange requirements. 

In July 2010 Itochu bought a 10.3% direct stake in Extract for US$ 153 million, mostly from Polo Resources, giving it 16.43% overall. Some of Extract's tenements are held by Swakop Uranium, a wholly-owned subsidiary.

* through Nippon Uranium Resources (Australia) Pty Ltd., Itochu's wholly-owned Australian subsidiary. 

Extract Rsources earlier rejected overtures from Rossing Uranium for joint development, using the Rossing treatment plant.  However, in February 2011 Extract confirmed that it was holding discussions with Rio Tinto about combining its Husab Uranium Project with Rio's adjacent Rössing Uranium mine (68.6% owned), "with a view to capturing the significant potential synergies that could be generated from a joint development of the two projects".  Rio Tinto has direct equity in Extract of 14.22%, as well as 11.52% of Kalahari (19% overall in Husab). Over August to October discussions with Rio Tinto were continuing.

A joint task force announced in May 2010 between Russia's ARMZ and Namibian government Epangelo Mining Ltd with $1 billion funding was reported to be "aimed at Rossing South", but Extract has received assurance from the government that its leases are secure, and Namibia's international reputation supports this. However, late in 2011 Extract was discussing with Epangelo the possibility of 10% equity in the project being acquired on commercial terms. At that stage CGNPC-URC was considering a takeover of Kalahari Minerals, which might be extended to Extract.

Omahola: 

Australia's Deep Yellow Ltd, through wholly-owned subsidiary Reptile Uranium Namibia, is focused on the Omahola Project. It includes the high-grade Inca primary uraniferous magnetite deposit at about 200 metres depth, the Ongolo Alaskite, and MS7 Alaskite, 2km away and possibly connected to it, and the shallow aeolian Tubas Red Sand deposit.

Inca has 3076 tU indicated and 2000 tU inferred resources at about 0.037%U. It is about 10 km south of Etango and 35 km in from the coast. Some 12km northeast of Inca, the Ongolo Alaskite deposit was discovered in 2010, and has 5110 tU indicated and 1870 tU inferred resources at 0.034%U grade and a strike length of up to 2km (contiguous with Extract's Ida Dome). In between is MS7 with so far only 900 tU inferred resource. All resources (Nov 2011) are JORC-compliant.

Tubas Red Sand (TRS) has indicated and inferred resources of 1900 tU at 0.014%U, which can be readily beneficiated to 0.05% using hydrocyclone technology. In the light of successful beneficiation, TRS is being reinterpreted with lower cut-off and its JORC figure is likely to increase.

The company hopes to develop an open cut mine combining ore from Inca and Ongolo with that from Tubas-Red Sand 10 km south of it (80-20 ratio) to produce about 850 tU/yr from 2014. The pre-feasibility study shows capital cost for mine and tailings dam development is estimated at about $320 million, and operating cost about $25/lb U3O8, including iron recovery. (The company's Shiyela high-grade magnetite deposit is only 35 km from Walvis Bay.) In November 2011 the company submitted environmental assessment reports for both Inca and TRS. The former envisages an open pit mine producing up to 2.5 Mt/yr of uranium and iron-bearing ore which could result in production of up to 960 tU/yr, depending on project economics

Deep Yellow/ Reptile's Tubas-Tumas Palaeochannel Project takes in extensive secondary calcrete deposits and associated systems stretching over about 30 km south and southeast of Inca, and have 15,000 tU inferred resource for Tubas and 8000 tU for Tumas (25 km SE of Tubas) both at at 0.02%U. A higher-grade (0.036%U) subset of this palaeochannel deposit has 13,400 tU.

Reptile's Aussinanis deposit, on the coast about 60km south of the others, is quoted as having 7000 tU indicated and inferred resources, and teh hydrocyclone technology tested on TRS has potential application here. The company also has a joint venture with a Namibia subsidiary of Toro Energy for contiguous ELs.  Paladin holds 20% of Deep Yellow Ltd. 

Trekkopje 

Areva's Trekkopje is about 80 km northeast of Swakopmund, and 35 km north of Rossing. In 2007 UraMin Inc announced an upgrade of uranium resources at this project, comprising two adjacent palaeochannel deposits (Klein Trekkopje being the main one) over an area about 16 km by 1 to 3 km. The company was then taken over by Areva to become Areva Resources Southern Africa, with subsidiary Areva Resources Namibia  developing the mine.

The US$ 1 billion project has a shallow open-pit mine and plans a sodium carbonate/ bicarbonate heap leach process - the first one in the world.  80 percent of the ore is less than 15 metres deep, but is very low grade - 0.012-0.015%.  Water is supplied from a coastal desalination plant with about 55,000 m3/day output and requiring 16 MWe from the grid. Areva plans to offer about one third of this water, some 6 million m³ per year, to other mines.

A substantial conversion of 'inferred' resources to reserves occurred as a result of drilling in 2006 and 2007, taking the Measured and Indicated resource category to 42,000 tU in the main deposit.  Areva quoted 45,600 tU resources in 2008, but then revised this to 26,000 tU in 2011 at lower grades as it announced a massive EUR 1.8 billion write-down of its investment. Over 9000 tonnes of vanadium pentoxide by-product was envisaged.   A mining licence was granted in June 2008, production commenced in 2010, and was ramping up towards a projected 3200 tU/yr in 2013.  The second stage pilot operation was commissioned in mid 2010, and the main ore stacking for the on-off alkaline leach operation was due to commence early in 2012.

Valencia:  

Forsys Metals Corp. of Toronto is developing the Valencia uranium project along strike from Rossing and 25 km northeast of it, with geology (alaskite) similar to Rossing.  Environmental approval for an open pit mine was granted in June 2008 and a mining licence was granted  in August 2008 to Valencia Uranium P/L (a wholly owned subsidiary of Forsys), allowing production to begin in 2012 at 1350 tU/yr and ramp up to about 2200 tU/yr. Measured and indicated resources figures to 23,320 tonnes U at 0.016% U with 0.01% cut-off. This includes reserves of 19,000 tU at 0.0165% U with 0.01% cut-off. The open pit will be 1600 x 1000 metres and 375 m deep.   

Further drilling from 2010 is at the Namibplaas area, 6 km northeast, with similar geology and which Forsys now fully owns through Dunefield Mining P/L. In September 2011 it announced a NI 43-101 inferred resource of 9600 tU at 0.01% cut-off in similar mineralisation. Forsys is considering a development from 2013 involving both deposits to produce 2300 tU/yr, starting 2015.

Etango (formerly Goanikontes): 

In October 2010 Perth-based Bannerman Resources Ltd announced measured and indicated resources of 57,330 tU at about 0.02% and inferred resources of 24,600 tU at slightly lower grade, both with 100 ppm cut-off (JORC & NI 43-101 compliant) for the Etango project 30 km southwest of Rossing and 35 km east of Swakopmund.  The inferred resources are mostly at the adjacent Ondjamba and hyena orebodies. The alaskite ore is very similar to that at Rossing, up to 400m deep, but with two thirds of the resource less than 200 m deep. Heap leaching appears to be the most cost-effective recovery method. AMEC Minproc is undertaking a definitive feasibility study for open cut mining from 2015 to produce 2000-2500 tU per year for 20 years. Capital cost is estimated at $638 million, with cash costs US$ 42/lb U3O8 over the life of the mine. Environmental approval for development of the project was received in 2010, and that for infrastructure in mid 2011. The definitive feasibility study is due for completion in March 2012. Bannerman, which holds 80% of the Etango project, is seeking a development partner. In July 2011 China's Sichuan Hanlong group made a conditional A$144 million takeover offer for Bannerman, but this did not proceed.

Marenica:  

In July 2008 West Australian Metals, now re-named Marenica Energy , announced a modest JORC-compliant inferred resource in the Marenica palaeochannel deposit 30 km north of Areva's Trekkopje and similar to it. In December 2011 the company revised this to Indicated Resource of 2500 tU at 0.01%U, and an Inferred Resource of 19,600 tU in 0.008%U ore, mostly palaeochannel but with some granite-alaskite basement rock down to 60 metres. There is good potential to significantly upgrade the uranium plant feed grades by sizing and separation. This upgrade potential effectively dismisses heap leaching as a process option with the preferred process option now being tank leaching of the beneficiation product. (Earlier, the company was considering a $260 million heap leach operation with production of 1350 tU/yr over 13 years.) However in December 2011 the company said that it would focus on tank leaching of the beneficiation product, and aim to improve the grade of this.

Marenica Energy has an 80% interest in the project. Early in 2010 Areva NC bought a 9.5% stake in the company from Polo Resources PLC, and in November 2010 China's Hanlong Energy Ltd, a subsidiary of privately-owned Sichuan Hanlong Group, bought a 5.82% share of the company and agreed to provide loan funding.
 

Canada's Xemplar Energy Corp of Canada is exploring its Cape Cross Uranium Project in the Namibian "uranium corridor", near the coast.  

Namibia's identified uranium resources are about 5% of the world's known total. Those recoverable at up to $130/kg are about 275,000 tonnes U. The Reasonably Assured Resources portion of this is 176,000 tU, accessible by open pit mining.

Nuclear power  

Namibia's electricity supply of some 3 billion kWh per year is half supplied by South Africa, which faces serious supply constraints itself. A coal-fired plant is planned for Walvis Bay.

The government has articulated a policy position of supplying its own electricity from nuclear power by about 2018, but there is no evident progress towards this goal. The country faces severe challenges in power supply.

Organisation

Mining is regulated under the Atomic Energy Act 2005 and Environmental Management Act 2007. An Atomic Energy Board has been established along with a National Radiation Protection Authority.

Finland’s Radiation & Nuclear Safety Authority (STUK) is working with Namibian authorities to help develop uranium mining policies and a safeguards and non-proliferation regime, under a program funded by the Finnish Foreign Ministry. As of early 2011 this did not include any development of a regulatory regime for nuclear power.  

Non-proliferation 

Namibia is party to the Nuclear Non-Proliferation Treaty and has had a comprehensive safeguards agreement in force since 1998 and in 2000 signed the Additional Protocol.

Sources:
OECD NEA & IAEA, 2006, Uranium 2005: Resources, Production and Demand
Paladin Resources and other company web sites as linked above
UraMin