Erongo desalination purchase still on, NamWater says
Medium- to long-term solution on the table
Pending a technical advisor report, the national water utility will decide the way forward on acquiring a desalination plant in the Erongo Region.
NamWater has not shelved plans to acquire the Erongo Desalination Plant, owned by French nuclear energy company Orano Group.
This coincides with plans by the bulk water supplier to construct its own desalination plant to augment water supply in the mining-thirsty Erongo Region.
NamWater CEO Abraham Nehamia said the two parties have appointed a technical advisor to ensure they come up with a workable solution regarding the plant.
“The Orano plant is not off the table. We have got a transactional advisor who is assisting us in engaging with Orano to look at what the possibilities are. There are two possibilities here, looking at the position of the plant.
“One is acquiring the mine; the other is a medium- to long-term solution for them still to be supplying water,” he said.
Compelling business case
The acquisition of the plant made for a compelling business case for NamWater and government, according to Nehamia.
“There are a number of mines that are lining up that have plans to open as well and we have to move fast because the [uranium spot] prices are currently somewhat favourable. One never knows what happens in a few years from now and while everybody is ready to open up, we have to make sure there is sufficient water.”
“The plant has played a critical role in the last 10 years, so for us to be able to supply water, we cannot just write it off. It is part of the integrated system,” he added.
Government, NamWater and Orano would be presented with the technical advisor’s findings by the end of the year, which will give all parties involved a clearer picture on the way forward.
“This is now a national project. It needs to be discussed with government; it will be government acquiring the plant. They will look at how they finance it.”
Water supply
Meanwhile, NamWater and Langer Heinrich Uranium (LHU) concluded a water supply agreement related to the bulk water supplier’s investment in a 34-kilometre pipeline between Wlotzkasbaken and Swakopmund totalling N$454 million.
According to Nehamia, LHU will in future - once it exits care and maintenance on its mine - make a capital contribution for its capacity on the pipeline.
“The signing of a letter of commitment allows LHU to be reconnected to the NamWater system. With this, the mine will be assured of water supply immediately upon requiring its full supply,” he said.
This coincides with plans by the bulk water supplier to construct its own desalination plant to augment water supply in the mining-thirsty Erongo Region.
NamWater CEO Abraham Nehamia said the two parties have appointed a technical advisor to ensure they come up with a workable solution regarding the plant.
“The Orano plant is not off the table. We have got a transactional advisor who is assisting us in engaging with Orano to look at what the possibilities are. There are two possibilities here, looking at the position of the plant.
“One is acquiring the mine; the other is a medium- to long-term solution for them still to be supplying water,” he said.
Compelling business case
The acquisition of the plant made for a compelling business case for NamWater and government, according to Nehamia.
“There are a number of mines that are lining up that have plans to open as well and we have to move fast because the [uranium spot] prices are currently somewhat favourable. One never knows what happens in a few years from now and while everybody is ready to open up, we have to make sure there is sufficient water.”
“The plant has played a critical role in the last 10 years, so for us to be able to supply water, we cannot just write it off. It is part of the integrated system,” he added.
Government, NamWater and Orano would be presented with the technical advisor’s findings by the end of the year, which will give all parties involved a clearer picture on the way forward.
“This is now a national project. It needs to be discussed with government; it will be government acquiring the plant. They will look at how they finance it.”
Water supply
Meanwhile, NamWater and Langer Heinrich Uranium (LHU) concluded a water supply agreement related to the bulk water supplier’s investment in a 34-kilometre pipeline between Wlotzkasbaken and Swakopmund totalling N$454 million.
According to Nehamia, LHU will in future - once it exits care and maintenance on its mine - make a capital contribution for its capacity on the pipeline.
“The signing of a letter of commitment allows LHU to be reconnected to the NamWater system. With this, the mine will be assured of water supply immediately upon requiring its full supply,” he said.
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