About Swakop Uranium
As a wholly-owned Namibian subsidiary of Extract Resources, Swakop Uranium is responsible for developing and constructing a world-class uranium mine, called Husab Uranium Mine, in the Erongo region in western-central Namibia.
Swakop Uranium’s main objective is based around the potential of the uranium oxide-rich provinces in Namibia, particularly within the alaskite belt where the existing Rössing Uranium mine is located. The company was established in 2006 to explore, evaluate, develop and produce uranium oxide as a source of fuel conversion for low cost, environmentally-friendly, nuclear power. Under the stewardship of its first CEO, Norman Green, Swakop Uranium has identified as its first task “to deliver to its shareholders and the Namibian nation one of the largest and most efficient uranium mines in the world”.
With the Husab Uranium Project seen as the most important uranium discovery of recent years, Swakop Uranium is positioned to develop and construct the second largest uranium mine in the world with the potential to produce 15 million pounds (6 820 tonnes) uranium oxide per annum. This is more that the total current uranium production of Namibia and will elevate Namibia past Australia and Canada to the second rung on the world ladder of uranium producers.
The 8 km uranium mineralisation has been confirmed as the highest-grade, granite-hosted uranium deposit in Namibia, and one of the most significant discoveries in decades.
Head office
Swakop Uranium’s head office is in the Namibian capital of Windhoek, while the exploration team of about 100 people is based on the Husab site near the beautiful coastal town of Swakopmund. The project owner’s team, which has to deliver the Definitive Feasibility Study and has to design and develop the Husab mine, is based in Johannesburg, South Africa. This highly experienced team of thirteen specialists will, however, move to Swakopmund when construction starts in the second half of 2011.
Substantial contributor
Given the potential of the Husab site, Swakop Uranium is poised to become a substantial contributor to the Namibian economy and its local communities.
At the current uranium spot price, a production rate of 15 million pounds per annum and an exchange rate of N$7 to the US dollar, Swakop Uranium will have an annual turnover of N$5 billion. An independent analysis furthermore shows that the Husab Uranium Project will contribute 5% to the Namibian Gross Domestic Product, 20% to the country’s merchandise exports and will add 20% (N$ 150-million) in royalty payments to the Namibian Government.
The project will also create more than 4,000 temporary jobs during construction and about 1,100 permanent operational job opportunities. This will increase the number of people employed in the mining sector by approximately 17%. According to a socio economic study done on the Husab project and the uranium rush, eight to ten spin-off jobs will be created per permanent employee, which means that up to 12,000 permanent jobs will be created by and as a result of the Husab Uranium Project.
