Namibian mining on the up
By Roelof Van Tonder
Africa House recently led a business delegation to Namibia to look at business opportunities in that
country with a focus on recent developments in the Port of Walvis Bay.
What we found was that the current and future improvements
in the port infrastructure and the related positive outlook for
the mining sector will likely generate steady growth in business
opportunities for a broad range of companies. The following are
some of the important developments in and around Walvis Bay
that support this view:
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On 1 August 2019 a New Container Terminal (NCT) at
the Walvis Bay Harbour will be inaugurated. The R6-billion
project financed by the African Development Bank will
improve the TEU capacity of that harbour from about 350
000 TEU’s to 750 000.
Completion of the first phase of the Liquid Bulk Terminal
in the North Port Development at a new site north of the
current port will enable the pursuit of several large projects
that can or will achieve the objective of making Walvis Bay
a regional logistics hub. These envisaged projects include a
mega logistics parks, a local crude oil industry; large scale
exports of Namibian mining product; Namibian iron ore
exports; the Trans Kalahari Railway Line; coal exports from
Botswana and many more.
Efforts to start servicing and trading with the two copper
belts in Zambia and the DRC has been successful.
The mining industry outlook is improving after a long period
of subdued activity: The following four positive developments
are worthy of mention:
- Aim-listed AfriTin Mining recently confirmed the
commissioning of a tin processing plant at the Uis
tin mine.
- The Namib Lead and Zinc Mine, situated some 30km
to the east of Swakopmund, is gearing up to re-start
production in 2019.
- Desert Lion Energy is planning on building Namibia’s
first large-scale lithium mine.
www.africanmining.co.za
- Rio Tinto is selling its stake in Rössing Uranium mine
to the China National Uranium Corporation (CNBC).
According to the World Nuclear Association global demand for
uranium is expected to rise 44% by 2035 and with some estimates
indicating that Namibia is set to become the third largest uranium
producer in the world, which bodes well for the industry. Market
conditions have changed in a positive way for the global nuclear
industry after seven years of disruption and oversupply following
the Fukushima incident in Japan.
Production cuts and improved demand from the nuclear sector are
pushing prices higher and supporting a slow but certain recovery
in the Namibian mining industry. The improved outlook for the
uranium mining industry in Namibia is supported by China and
India’s nuclear build programme. China is widely believed to have
19 nuclear reactors under construction and 41 planned.
In a bid to support investment in the mining industry
the Namibian Government has scrapped local ownership
requirements in the mining industry. In a separate, but related
announcement the Ministry of Finance has issued new local
content procurement requirements for mines and other
industries. Effectively they have made it easier for investment to
take place while at the same time supporting local industry with
modest local content requirements.
In the shorter term, the completion of the New Container Terminal
will be making more than 30 hectares of prime port property available
for all industries with close involvement in the logistics and mining
sectors of Namibia and in countries such as Zambia and the DRC. In
the longer term this new terminal will be a catalyst in supporting the
North Port Development and improving the competitiveness of the
Namibian and broader regional mining industry. b
JULY - AUGUST 2019 AFRICAN MINING
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