The mining industry has weathered the storm

According to CoM, Namibia currently provides about 10% of the world’s uranium and in 2008 became the fourth largest uranium producer in the world.

This position is likely to improve even further in the future when two new mines being developed at Trekkopje (by AREVA) and Valencia (by Forsysmetals / Westport Resources) come online to complement the Rössing mine and Paladin energy’s Langer Heinrich uranium mine.

Malango emphasises, “The outlook (for Namibia’s mining sector) is positive, thanks to the growing uranium industry that is poised to take centre stage as the major source of state revenue.” Brass Scrap Crusher

Leech also points to swelling interest in the country’s uranium deposits, pointing out, “Developments in our uranium industry have not gone unnoticed by the rest of the world and Namibia has enjoyed a stream of potential uranium investors over the past year from a variety of countries including Japan, South Korea, Russia, India and China.”

Challenges facing foreign mining investors

Some mineral deposits are found near or in protected wilderness areas pivotal to the country’s tourism sector. As the two most important sectors of the Namibian economy, it is vital to balance economic gains from the mining industry with the protection of biodiversity hotspots and National Parks, which themselves also attract foreign investment and interest in the country.

According to Mbendi, water and power supply infrastructure is poorly developed across most of the country, making this the major hurdle to overcome, as companies wanting to advance a mining project need to also consider how they are going to install this supporting infrastructure.

The flip side of this coin is, of course, that mining projects can benefit the country as a whole even further by supplying support infrastructure that can be used as a base to expand industry, uplift communities and create jobs, thereby catalysing the entire economy.

Colin Kubank, MD of international engineering firm AMEC Minproc’s African operations, is quoted on the CoM website claiming that the potential gains to be made from investing in the Namibian mining industry outweigh its inherent challenges.

“Despite the challenges companies are confronted with when mining in Namibia, the country’s rich supply of mineral resources and positive government attitude make it a popular destination for investors,” relates Kubank. Bottle Crusher

“The value of uranium exports alone surpassed the value of the country’s  diamond exports.”

Looking forward

As 2010 draws to a close, industry players believe that the Namibian mining industry will continue to go from strength to strength, with demand for uranium at the heart of its expansion.

Leech quotes Namibia’s Central Bureau of Statistics’ findings that 2008 was the first year since 1990 when the contribution of non-diamond mining to GDP exceeded that of the diamond mining sector. Indeed, the value of uranium exports alone surpassed the value of the country’s diamond exports.

“Namibia is expected to remain an attractive destination for mining investment as a consequence of its mineral resources, political stability and government, which is keen to develop its mining potential. Consequently, AMEC Minproc sees a bright future for the Namibian mining industry and our opportunity to participate in it,” Kubank explains.vertical roller mill 

“The mining industry has weathered the storm (of the global economic crisis) and we look to 2011 with optimism… With expansion programmes at existing mines, one mine under construction and new mines on the horizon pending the granting of mining licences, the mining industry shall continue to play its vital role in the economic development of Namibia,” Malango stresses.