Uranium to help Namibia tide over crisis
Monday, 14 December 2009
WINDHOEK, Dec 13 (Commodity Online): The hunt for clean energy has caused a rush for uranium resources across the globe now. And, Namibia is the country which is benefiting from the hunger for carbon-based energy.
Namibia's uranium resources have always been a big attraction for countries which are seeking to go for clean energy.
This rush has come as a blessing in disguise for Namibia as the economic downturn has been taking a toll on the country's vital diamond industry.
Currently the world's fourth-largest uranium producer, the southern African country is expected to more than quadruple uranium production over the next four to five years, boosting its economic growth.
All depends on prices and demand... but the long term fundamentals for Namibia's uranium industry are solid and the global outlook for the nuclear power generation industry will be a driving factor for our industry.
Namibia is home to the Rossing mine operated by Rio Tinto, which together with Paladin Energy's Langer Heinrich operation account for about 10 per cent of world uranium production.
Both companies have aggressively expanded their operations in response to higher uranium prices and growing global demand for low-carbon energy sources. Other companies have been joining the exploration drive, with several new mines due to come on stream within the next five years.
Areva's Trekkopje open-pit mine will become the country's third uranium mine when it comes on stream in 2011, while Extract Resources' lucrative Rossing South deposit is forecast to start producing in 2013.
Analysts said that within five years Namibia could easily be pushing for the number two or three producer spot in the world.
Namibia's investment climate has been favourable to the sector, although the uranium rush did prompt the government to impose a moratorium on new licenses to better manage the resource.
At the same time, the state has mobilised agencies to ensure the country's infrastructure and services can cope with the industry's growth.
Companies so far have been developing assets independently in Namibia, but there has been occasional speculation about potential tie-ups as the uranium sector develops.
Russia, China and India are keen to secure uranium assets for their fast-growing nuclear industries in the respective nations.
Namibia has no plans yet to build its own nuclear reactor, but may look at building one in the future to supply the strained domestic and regional power market.
Namibia's uranium resources have always been a big attraction for countries which are seeking to go for clean energy.
This rush has come as a blessing in disguise for Namibia as the economic downturn has been taking a toll on the country's vital diamond industry.
Currently the world's fourth-largest uranium producer, the southern African country is expected to more than quadruple uranium production over the next four to five years, boosting its economic growth.
All depends on prices and demand... but the long term fundamentals for Namibia's uranium industry are solid and the global outlook for the nuclear power generation industry will be a driving factor for our industry.
Namibia is home to the Rossing mine operated by Rio Tinto, which together with Paladin Energy's Langer Heinrich operation account for about 10 per cent of world uranium production.
Both companies have aggressively expanded their operations in response to higher uranium prices and growing global demand for low-carbon energy sources. Other companies have been joining the exploration drive, with several new mines due to come on stream within the next five years.
Areva's Trekkopje open-pit mine will become the country's third uranium mine when it comes on stream in 2011, while Extract Resources' lucrative Rossing South deposit is forecast to start producing in 2013.
Analysts said that within five years Namibia could easily be pushing for the number two or three producer spot in the world.
Namibia's investment climate has been favourable to the sector, although the uranium rush did prompt the government to impose a moratorium on new licenses to better manage the resource.
At the same time, the state has mobilised agencies to ensure the country's infrastructure and services can cope with the industry's growth.
Companies so far have been developing assets independently in Namibia, but there has been occasional speculation about potential tie-ups as the uranium sector develops.
Russia, China and India are keen to secure uranium assets for their fast-growing nuclear industries in the respective nations.
Namibia has no plans yet to build its own nuclear reactor, but may look at building one in the future to supply the strained domestic and regional power market.