Namibia uranium output down on poor weather

[miningmx.com] — NAMIBIA’S uranium production fell in the first 10 months of 2011 compared with the previous year due to poor weather, but output is expected to rise as expansion projects come online, financial group Capricorn Investment Holdings (CIH) said on Tuesday.

The southern African country produced 7.3 million lb of uranium between January and October, compared with just under 10 million lb in the same period of 2010, CIH said, citing mining ministry figures.

The ministry did not immediately respond to queries asking for the data.

“Low levels of production in 2011 can be attributed to poor weather in the early part of the year, meaning mines had to be closed for prolonged periods, as well as mine stripping to reach the ore body at Rossing (mine), meaning that production levels are abnormally low,” said CIH.

Namibia is one of the world’s top uranium producers.

Rio Tinto’s Rossing mine and Australian miner Paladin Energy are the two operating producers, although other companies are developing projects that are expected to boost output in the near term.

Paladin also recently completed the expansion of its Langer Heinrich mine, which is expected to raise annual output at that mine to 5.2 million lb from 3.7 million.

Namibia’s diamond production in the third quarter of 2011 was 389,602 carats, up from 208,242 carats in the second quarter. Output fell, however, when compared with production of 406,688 carats in the same quarter the previous year.

“Global demand for gemstones has taken a knock amidst uncertainties in the euro zone, coupled with the fact that Namibia is approaching its maximum (short run) potential production,” said CIH.

“Mining companies to date have not been willing to commit to significant capital injections which are needed to upgrade infrastructure and update mining technology, thus this trend seems likely to continue.”

CIH said a month-long strike at Namdeb, the country’s main diamond producer and a 50-50 joint venture between the Namibian government and De Beers, in October further affected diamond output with a loss of 26,000 carats.

The financial group said diamond royalties for the first 10 months of 2011 amounted to N$440m, which is N$100m more than over the same period in 2010.

Gold production fell to 1,702 kg in the first 10 months of 2011 compared with an output of 2,097 kg the previous year.