Uranium in Namibia
(Updated October 2013)
- 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, this does not apply retrospectively or amount to nationalisation of existing mines or leases. Paladin and Kalahari have both expressed confidence that their assets are not at risk of expropriation, and in April 2012 Epangelo agreed to buy a share of the Etango project and pay a corresponding share of development costs. 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. New exploration licences will be granted only to Epangelo, and others interested will need to negotiate farm-ins with it, to become joint-venture partners.
Over 2011-12 a Strategic Environmental Assessment was undertaken over the whole uranium province inland from Swakopmund and Walvis Bay. This addressed the whole region and all the projects, and is to result in a Strategic Environmental Management Plan to be implemented by the government and individual project companies.
One of the aspects of the Strategic Environmental Management Plan is water supply. Since 2010 water has been supplied to Trekkopje from a coastal desalination plant in the Erongo region with eventually about 20 million m3/yr output and requiring 16 MWe from the grid. Some of this water, some 10 million m3 per year, is available to other mines, and agreements have been signed with Namibian Water Corp for Rossing, Langer Heinrich and Husab. The plant is jointly owned by Areva and a local company, United Africa Group. In 2014 the government plans to start building a second plant adjacent, with 60 million m3/yr capacity. This will be a public-private partnership project costing $145 million, with Namibia Water holding 30% initially.
||Measured & indicated
||52,700 tU in 0.021% ore**
||57,500 tU in 0.055% ore
||9,200 tU in 0.06% ore
||26,000 tU in <0.011% ore
||3,000 tU in 0.01% ore
|Husab (Rossing S)
||137,700 tU in 0.039% ore
||50,000 tU in 0.029% ore
||39,700 tU in 0.0167% ore
||8,500 tU in 0.014% ore
||57,330 tU in 0.019% ore
||24,630 tU in 0.016% ore
||palaeochannel & hard rock
||2500 tU in 0.010% ore
||19,600 tU in 0.008% ore
||10,400 tU in 0.036% ore
||6950 tU in 0.036% ore
||10,900 tU in 0.0125% ore
** in addition to reserves, see below. * reserves are 46,000 tU at 0.0165%U,
Namibia Uranium Production - tonnes U
Rossing Uranium Ltd was formed in 1970 (now 68.6% Rio Tinto, 15% Iranian Foreign Investment Co., 10% Industrial Development Corporation of South Africa, 3% Namibian government). The company has mined the deposit from 1976 as a large-scale open pit in very hard rock. Rossing has nominal capacity of 4000 tU/yr and to the end of 2011 had supplied 101,123 tU. In 2012 it produced 2293 tU and in the first half of 2013: 1101 tU.
Rossing's reserves at the end of 2009 were 7650 tU proven, and 51,800 tU probable, at 0.031% U in ore (calculated without allowing for 85% mill recovery). Reserves increased slightly in 2010. Its uranium is sold to power utilities in Central Europe, North America and South-East Asia including China.
After three years evaluation it was decided in December 2005 to invest US$ 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 ($57/kgU) in 2006. In 2008 production was 2370 tonnes U.
In 2011 the Namibian government initiated negotiations with Iran regarding holding in trust the Iranian 15% share in Rossing while UN sanctions on Iran apply, or Epangelo buying that share.
Paladin's Langer Heinrich is 50 km south-southeast of Rossing, in the Namib Park, and 80 km from the coast. It was bought by Paladin Resources Ltd (now Paladin Energy) in 2002. The open pit mine commenced operation late in 2006 with 1000 tU/yr capacity. The ore occurs over 15 km in a palaeochannel system, some 50m deep. Some vanadium is present in the carnotite mineral. There is a conventional hard rock mill with an alkaline leaching circuit.
Production in 2012 was 1960 tU, and the first half of 2013: 996 tU. Stage 2 development boosted production capacity to 1430 tU/yr in 2009, and Stage 3 took it to 2000 tU/yr from late 2011 at a cost of US$ 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.
The new owner of the project, Taurus Minerals, a subsidiary of China’s CGNPC-Nuclear Fuel Co, planned to start development of the mine in October 2012, ramping up to 5770 tU/yr over 2015-17. Formal construction started in February 2013, and mining is expected to commence late in 2015. There will then be 24-month ramp-up of production to full capacity of 5700 tU/yr in 2017.
The Rossing South orebody is about 5 kilometres south of the Rossing mine and 45 km northeast of Walvis Bay port. A definitive feasibility study demonstrating the technical and economic viability of mining Zones 1 & 2 was completed by Perth-based Extract Resources on the basis of measured resource for them of 32,000 tU averaging 0.043%U, and indicated resources of 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 to June 2011, 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. Only 10km of 15km strike on the company's lease – contiguous with Rossing – had then 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, which holds some of the tenements.
Following the takeover by Taurus/ CGN-URC, Extract is starting construction of the mine from October 2012 and expects this to take 33-36 months.
Kalahari Minerals PLC owned 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 (CGN-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 CGN-URC and 40% by the China-Africa Development Fund, was unanimously recommended by Kalahari directors. It then acquired some 90% of Kalahari, including Rio Tinto's 11.5% and Itochu's 14.9% stake, requiring it to make a $2.2 billion downstream cash offer for Extract shares. It did this, Extract directors recommended acceptance, and the takeover was completed in April 2012. CGN-URC became CGNPC-Nuclear Fuel Co (CGNPC-NFC) in February 2012.
Also, Itochu had a 10.3% direct stake in Extract.
The Namibian government’s Epangelo Mining Ltd has for some years been a potential partner in the project. A joint task force announced in May 2010 comprising Russia's ARMZ and Namibian government Epangelo Mining Ltd with $1 billion funding was reported to be "aimed at Rossing South", but Extract received assurance from the government that its leases were secure, and Namibia's international reputation supported this. In November 2012 Epangelo agreed to buy a 10% interest in Swakop Uranium for $213 million, funded by the vendor and to be repaid from dividends.
Extract Resources had earlier rejected overtures from Rossing Uranium for joint development, using the Rossing treatment plant, though 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". These discussions were inconclusive. Rio Tinto had direct equity in Extract of 14.22%, and 11.52% of Kalahari (formerly 19% overall in Husab) but sold both holdings to Taurus.
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 10 km away, and MS7 Alaskite in between and possibly connected to it. An acid leach mill near the Ongolo Alaskite deposit was envisaged treating ore from Ongalo and MS7 Alaskite deposits and the INCA uraniferous magnetite deposit, all mined by shallow open pit (to 200 m).
Inca has 2800 tU indicated and 2400 tU inferred resources at about 0.04%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 2600 tU measured, 3000 tU indicated and 4000 tU inferred resources at 0.032%U grade and a strike length of up to 2km (contiguous with Extract's Ida Dome). In between is MS7 with 1660 tU measured, 370 tU indicated and 500 tU inferred resource. It is 600m along strike and 400m wide.
All resources (Jan 2013) are JORC-compliant. In January 2013 the company reported resources of 17,400 tU grading 0.036%U at 250 ppm cut-off for the whole greater Omahola project comprising Inca, Ongolo and MS7.
In November 2011 the company submitted an environmental assessment report for Inca envisaging 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. The company has applied for a mining licence. Environmental assessment of Ongolo-MS7 was to be done in 2012. First production could be in 2016 through a mill situated close to Ongalo.
However, test work on Ongalo alaskite ore reported in April 2013 showed promising results from heap leaching with 90% recovery using 60kg sulphuric acid per tonne, or 80% using a different process and 12 kg acid per tonne. If these results are confirmed, the cut-off grade could be 100 ppm and hence average grade of the ore would be reduced to 0.0191%, with large increase in recoverable uranium to 48,000 tU.
The shallow aeolian Tubas Red Sand (TRS) deposit 10 km south of Inca and immediately south of the Tubas paleaochannel has indicated and inferred resources of 10,900 tU at 0.0125%U as carnotite, 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. It is now seen as a stand-alone operation.
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 2350 tU inferred resource for Tubas calcrete and 4470 tU indicated for Tumas (25 km SE of Tubas) both at 0.03%U.
Reptile's Aussinanis project, also a palaeochannel deposit, near the coast about 60km south of the others. It has 6976 tU indicated and inferred resources at about 0.02%U, and the hydrocyclone technology tested on TRS has potential application here. . In January 2013 Deep Yellow agreed with Namibia's Epangelo to transfer its Aussinanis and Ripnes projects into a new company, Yellow Dune Uranium Resources Ltd. Epangelo acquired a 5% stake in Yellow Dune to fund test work and confirm that the Aussinanis deposit can be upgraded by beneficiation. Reptile holds 85% and Oponona Investments 10%. If the test work at Aussinanis is successful, Epangelo will become the operator of the joint venture and would earn up to 70% in Yellow Dune by funding the project through to a bankable feasibility study. Reptile's holding would then shrink to 20%.
Reptile also has a joint venture with a Namibia subsidiary of Toro Energy for contiguous ELs. Paladin holds 20% of Deep Yellow Ltd.
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. About 80 percent of the ore is less than 15 metres deep, but is very low grade - 0.012-0.015%. Since 2010 water has been supplied from a coastal desalination plant set up by Areva with eventually about 55,000 m3/day (20 million m3/yr) output. Some of this water is available to other mines. The plant is jointly owned by Areva and a local company, United Africa Group, and will remain in operation despite the mine’s mothballing.
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. The mine was intended to produce 3200 tU/yr from 2013.
A mining licence was granted in June 2008, first concentrate from the pilot phase was produced in January 2011 but development stalled in October 2011 due to low uranium prices. The company said that the slowdown would "allow more time to optimize the technical and economic drivers of the future operation" and that it was it was "engaged in an intensive program to find innovative solutions for the launch of the mine." The second stage pilot operation had been commissioned in mid 2010, and the main ore stacking for on-off alkaline leach operation was due to commence early in 2012. However, the project was put on to a care and maintenance basis in October 2012: "considering both the continued decrease of uranium prices coupled with the investments yet to be made on site, Areva has no other option than to postpone the launch of the Trekkopje mine." Production in 2012 was 251 tU.
Norasa (Valencia + Namibplaas)
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). 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 has been at the Namibplaas area, 7 km northeast, with similar geology and which Forsys now fully owns through Dunefield Mining P/L. In September 2012 it announced a NI 43-101 indicated resource of 12,870 tU at 0.013%U plus 4250 tU inferred resources at similar grade, in similar mineralisation.
The Norasa project is a proposed development involving both deposits to produce 1900 tU/yr, starting 2015, and Forsys plans a definitive feasibility study on this, including possibly heap leaching. Measured and Indicated Resources in October 2013 were 39,700 tU at 0.0167%U with cut-off grades of 100 ppm at Valencia and 160 ppm at Namibplaas. Inferred resources add about one fifth to this.
Etango (formerly Goanikontes)
In October 2010 Perth-based Bannerman Resources Ltd announced measured and indicated resources of 57,330 tU at about 0.019% 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. Environmental approval for development of the project was received in 2010, and that for infrastructure in mid 2011. A mining licence is awaited. The definitive feasibility study was completed by AMEC Minproc in March 2012, confirming the viability of the project and putting its cost estimate at $870 million. Some 80% of measured and indicated resources were converted to proven and probable reserves of 46,000 tU at 0.0165%U, supporting minimum open pit life of 16 years. Production at 2700 tU/yr is now envisaged, with production costs of US$ 41/lb U3O8 over the first five years.
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. In April 2012 state-owned Epangelo Mining Ltd agreed to buy a 5% stake in the project for about $3.9 million, with an option to buy a further 5% upon commitment to mine development. The agreement would give Bannerman 76%, Epangelo 5% and the existing private investor 19%, with funding responsibilities pro rata. However the deal was called off when the companies could not agree on terms.
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, achieving reported beneficiation from 0.01% to 0.55%. 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 at $82/lb.) 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, but with product at $42/lb.
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.
Zhonghe Resources (Namibia) Development P/L is a Namibian registered company founded in 2008 by China Uranium Corporation Ltd (SinoU) (58%) a wholly owned subsidiary of China National Nuclear Corporation (CNNC), and a private company, Namibia-China Mineral Resources Investment and Development P/L (Nam-China) (42%). It was looking at alaskites northeast of Swakopmund, close to Rossing with a view to open pit mining and heap leaching a low-grade (0.02%U) uranium deposit to produce about 600 tU/yr. Resources are believed to be 6000-12,000 tU. A mining licence was issued by the Ministry of Mines & Energy in November 2012, then the 2011 EIS was released in April 2013, this being the first public information on the project.
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.
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.
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.
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.
OECD NEA & IAEA, 2006, Uranium 2005: Resources, Production and Demand
Paladin Resources and other company web sites as linked above