This year is one of the successful years for the company. We have been very
successful in terms of production as we are meeting our current production
targets and have a good order book to help us deliver good revenue.
The company's outlook for 2009 is positive and the company is sound, but it will
continue to engage in initiatives and projects that will preserve cash flow
particularly in 2009-2010. There will be reviews in the way that we conduct our
business, and at the same time position the Company to capture any upside in
market and economic conditions.
Rössing has a business plan that is still Geared For Growth and our current
manpower plans are aligned to support this growth. We will however see a
reduction in contractor numbers as a result of our revised capital and operational
expenditure budgets.
The Life-of-Mine extension phase that we are in requires high mining activity
levels for next year and beyond. Next year we will intensify stripping in the open
pit to expose the required ore. These are both essential expenditures necessary
to impact production capacity positively in future years. Even though we have
revised our capital and production plans, the company's cash flows independent
of the financial crisis will continue to be strained. The financial crisis adds great
uncertainty to this position and calls for further caution.
The company has measures in place to manage the situation.
Overall, contrary to this bad overall economic picture, Rössing as a business has so far
continued to deliver largely a positive performance. For 2008 to date Rössing is on track
to record it's targeted drummed uranium of 4004 tonnes by year end and amongst the
specific successes we've had over the past year are the following:
· we achieved nearly three million hours worked without a lost time injury
· we made significant progress with the ABS embedding activities and
· we are on track to achieve the successful implementation of the Mine Monitoring and Control (MM & C) system in Mining operations
All the measures that we have instituted are aimed at ensuring that the company
is better positioned to capture new business opportunities necessary for
sustained business operations under favourable market conditions.
The company remains optimistic about the future and it continues to be Working
for Namibia.
Issued by:
Zebra Kasete
General Manager Corporate Services
Enquiries:
Jerome Mutumba, Manager External Affairs
0811290195
Jerome.Mutumba@riotinto.com