Uranium sales drop due to shortage of shipping vessels

Namibia has recorded a decline in uranium exports due to a shortage of shipping vessels and containers suitable for transporting uranium.

The Bank of Namibia’s quarterly report says the decline was 41.6% and 45%, compared to the previous quarter and previous year, respectively.

“Export earnings from uranium fell both on an annual and quarterly basis during the second quarter of 2024 on the back of lower volumes exported,” the report says.

The country exported uranium to the value of N$1.8 billion.

Globally, the price of uranium recorded a 61.2% rise.

“The continued upward pressure on uranium prices reflects the persistent global uranium supply deficit combined with a higher demand for cleaner energy,” the report says.

Meanwhile, there was an increase in the sale of other minerals, such as gold.

“The export revenue realised from other minerals increased on an annual basis, primarily ascribed to higher export receipts from gold,” the report states.

The revenue from other minerals increased by 31.6% to N$4.1 billion when compared to last year.

The increase in revenue from gold was due to higher prices, as the price of gold went up by 33.7% globally.

This was in expectation of interest rate cuts.

“The rise in gold prices was aided by increased demand due to expected interest rate cuts, and higher purchases from central banks, given its role as a store of value and safe-haven asset and a decline in the United States treasury bill yields,” the report says.

Speaking during the repo rate announcements last week, central bank governor Johannes !Gawaxab said the prices of most commodities rose in the last quarter.

“The price of gold trended higher over the two-month period, buoyed by safe-haven demand.

Likewise, zinc and copper prices increased over the same period, partly due to relatively lower global interest rates and a weaker United States dollar exchange rate,” he said.