Uranium production to decline

Uranium is projected to see a decline for the rest of the year, according to the Bank of Namibia economic outlook report.

This comes as mines are trying to expand their mining pits through strip mining.

“Uranium production is expected to be constrained by strip-mining activities as mines try to expand their mining pits,” says the central bank.

Strip mining is the process or industry of obtaining ore or coal by opencast mining.

“This projected slowdown is reflected in the anticipated growth rate of 3,6% for 2024 compared to 24,3% in 2023,” says the report.

However, production is projected to pick up in 2025 at a rate of 5,2%.

According to the report, the 2024 growth for primary industries has been adjusted downwards to reflect the severe impact of the drought.

The primary industries include mining, agriculture and fishing.

Additionally, the effects of drought on the agriculture and water sector will slow down economic performance.

“Adverse effects of drought on the agriculture and water sectors are expected to exacerbate the overall economic performance,” reads the report.

A report by the chamber of mines in February, on the ‘Outlook for Namibia’s uranium sector in a resurging uranium market’, says there is a lot of potential for Namibia in the uranium industry as global demand increases.

“Existing producers such as Rössing and Husab are poised to renegotiate supply agreements to reflect prevailing market conditions, while also ramping up production to meet escalating demand,” says the report.

Namibia is currently the world’s third-largest producer of Uranium.

According to the chamber of mines, there are mining operations that are planned for this year, which will further bolster production.

Langer Heinrich Uranium Mine is among those whose production was projected to start in the first quarter of the year.

“In the near term, the expected production increase from existing mines, coupled with higher uranium prices, will boost uranium’s contribution to Namibia’s exports and foreign exchange earnings,” says the report.