The Namibian (Windhoek) NEWS October 25, 2004 Posted to the web October 25, 2004
By Maggi Barnard Swakopmund
A PROPOSED uranium mine to be established on the border of Namibia's biggest park, the Namib Naukluft Park, will pump millions into the economy, says the developer of the project.
John Borshoff, MD of Paladin Resources, an Australian company that owns 100 per cent of Langer Heinrich Uranium, said the mine would generate N$290 million in export revenue per year once in operation.
However, this might not be the case should Government grant the company export processing zone (EPZ) status, as was done with the Scorpion Zinc mine in the South.
In response to a question at a public meeting held at Swakopmund last week on the project, Borshoff confirmed that they would apply for EPZ status.
The granting of the status would mean the company does not have to pay tax on its profits, but only Pay As You Earn for its 100 employees.
As the first modern uranium mine to be developed in the last 18 years, only 100 employees would be needed to produce 1 000 tons of uranium oxide or yellow cake per year.
Borshoff said it would be a high tech mine using a much less complicated process than the Roessing uranium mine for instance, and would therefore not need as many employees.
Roessing produces 2 500 tons per year and employs about 800 people.
The MD said up to 300 people would be employed during the construction phase of the mine that would cost N$325 million.
Several other concerns were raised at the meeting over the establishment of the mine at Langer Heinrich about 80 km east of Swakopmund and 50 km south of the Roessing uranium mine.
The issue of the availability of water for the mine's need of one million cubic metres per year was raised.
Francois Friend of Softchem, the South African company contracted to carry out the environmental assessment, said NamWater had given its assurance that water would not be a problem.
No other stakeholders in the region, including the local authorities and the Department of Water Affairs were consulted on the issue of water.
The fact that the mine borders the Namib Naukluft Park and travel to and from the mine to the coast would be via the existing C28 gravel road that runs right through the park, gave rise to many questions from the 40 odd residents at the meeting.
The tenement containing a 12 km stretch of ore body had in fact been excised from the park earlier years when exploration first started in the 70s.
Achim Lenssen, a former warden in the park said the mine would have an impact on the environment and wanted to know what benefits the park would gain from the mine.
The answer was that the greatest benefit would be an improvement in the economy that would ensure more money for conservation.
It was also mentioned that the mine could make funds available for research, and provide assistance to park wardens.
Concerns over affects on tourism in the park, especially at the favourite Blutkopje campsite nearby, were also allayed by the mine management.
They said mining would only take place in the valley and would be shielded by the Langer Heinrich and Schiefer mountains.
Several people felt the daily travelling by gravel road to and from the coast to the mine for the 24 hour operation would be unsafe.
Borshoff said traffic would be kept to a minimum and employees would be transported by air conditioned buses.
He said no new roads would be build and the C28 would remain gravel.
As for the future of nuclear energy and demand of uranium, Borshoff presented figures to demonstrate that dramatic shortfalls were predicted in the near future.
"Mining is the only source that can fill the shortfall."
Apart from 35 nuclear power plants under construction in the world currently, and licensing and financial approvals given to a further 25, there were enormous pressure on more electricity supply world-wide.
This has led to an increase in the uranium price from US$8 to US$20 per pound over the last 18 months.
Paladin bought the Langer Heinrich deposit from another Australian company, Acclaim in August 2002.
The ore body was discovered in 1973 by Gencor, that carried out extensive work and put up a pilot plant in South Africa for testing.
In 1998 Acclaim bought the deposit and verified Gencor's findings.
As the uranium price remained depressed at the time, they sold the deposit to Paladin.
Since then Paladin's pre-feasibility study has confirmed the positive outcome of the previous companies.
A bankable feasibility study is underway and if all goes well the mine would be constructed from the second quarter of 2005.
Borshoff said the minimum mine life is 10 years, but they were confident it could operate for up to 20 years.
The ore will be mined from several small open pits.
The leaching process will be alkaline based, which meant no dangerous seepage would be released into the environment.
"This is the benefit of using the latest technology that is also more environmentally friendly," the Softchem consultant told The Namibian.
Paladin is an Australian listed company with 2 000 shareholders in the US, Europe and Australia.
The company has one other project in Africa (Malawi), and three more in Australia.
Langer Heinrich will be its first operational site.
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