Swakop Uranium: China’s biggest African investment eyes first profit

Swakop Uranium's massive Husab uranium mine is on track to produce this year's target of 4 700 tonnes of triuranium octoxide for export, according to CEO Qiu Bin.

The largest single Chinese investment in Africa’s executive vice-president Irvinne Simataa is optimistic that this year will be the first time Swakop Uranium makes a profit, since the initial drum of uranium oxide was filled in 2016.

He said he expects that Husab will soon produce 5 000 tonnes of ‘yellow cake’ a year.

In doing so, it will be the second-largest single source of uranium in the world.

For that, Husab will have to be able to move 120 million tonnes of stone and soil on the mine, and at the moment, it is doing enough to be able to mine 118 million tonnes this year, Simataa said.

Golden key

Both of their speeches were made on Tuesday at the launch of Swakop Uranium's 2022 sustainability report at a Windhoek hotel.

In attendance were several members of the Namibian cabinet and the deputy governor for China’s Guangdong province, Zhang Hu, who – alongside vice-president of majority shareholder China General Nuclear Power Group (CGN) Shi Bin – spoke at the event.

Shi said clean energy is at the heart of the CGN mission, of which the Husab mine is a flagship project - exemplary of safety, green practice and sustainability.

“Swakop Uranium improves production and also embraces corporate responsibility. We are an international company that benefits local communities, and we are deeply integrated with socio-economic progress," he said.

He quoted Chinese president Xi Jinping that sustainable development is the 'golden key', adding: "Let’s keep pushing forward together".

Twin relationship

Zhang said trade between China and Namibia increased by 14.4% last year and this year, between January and July, it has already increased by a total of 27%.

Guangdong hosts the CGN headquarters and, according to the deputy governor, the Chinese province will continue to strengthen the economic relationship with Namibia in anticipation of more achievements in the future.

At the same event, Erongo Region governor Neville Andre Itope said the discussion to create a twin relationship with Guangdong has already begun.

Swakop Uranium has long been a development partner of the region, which constantly strengthens the friendship between Namibia and China, he said.

Meanwhile, Inge Zaamwani-Kamwi, adviser to President Hage Geingob and chairperson of Swakop Uranium's board's sustainability committee, said the report is “another milestone”.

"We expect for the first time to make a profit, production [will] improve and operations have stabilised," she said.

According to her, the Namib-Naukluft Park is a sensitive area and it is a privilege to be able to operate within it.

"We are a world-class operation and I am proud of the standards our people can maintain here in Namibia.”

Husab cares

Besides the fact that Swakop Uranium started building a 12 megawatt (MW) solar power plant last year, water consumption is reduced through recycling and everything is done to reduce the adverse impact on the local food system, Zaamwani-Kamwi said.

Further, the report placed emphasis on nature conservation and experts on Namibia's endemic Welwitchia plant (Titus Shuuya), and the Husab sand lizard (Jonas Lipopila) spoke about the support their research gets at the mine.

In his keynote speech, environment minister Pohamba Shifeta said the number of Welwitchia plants in the area shows that the mine cares for the biodiversity in its environment.

He lauded the transparency of the report and the honest approach of care and consideration with which Swakop Uranium works towards nature.

"I am proud to be part of such a significant event," he said.