Our value addition

As a major employer and purchaser of goods and services, Rössing Uranium makes a signifcant contribution to economic development and the creation of prosperity for communities. Through such prosperity created, Arandis is seeing houses being built in new developments in the town.


The motivation to do value-added reporting is linked to the overall process of disclosure regarding fnancial information.

By sharing information about the value Rössing Uranium adds through its operations and business activities, the mine aims to bring into focus all aspects of the impact the company makes on the economy of the Erongo Region in which we operate, as well as on the country's economy as a whole.

Our Value-Added Statement (see below) reflects the wealth created through the sale of our uranium oxide production, payments for services to suppliers, taxes to the Namibian Government, payments to employees and the investments made in neighbouring communities.

How Rössing Uranium adds value

Sustainable development is underpinned by sustainable economies. Our continuing operations are based on our ability to secure access to land, people and capital.

We use our economic, social, environmental and technical expertise to harness these resources and create prosperity for our shareholders, employees and communities, as well as for the Namibian Government and our business partners.

As a major employer and purchaser of goods and services, we make a signifcant annual contribution to economic development in the Erongo Region in particular and to Namibia at large.

Despite the current fnancial strain under which we operate, we invested N$15.4 million in our neighbouring communities during 2016, either directly or through the Rössing Foundation.

The review period also saw us continue to demonstrate our value to Namibia through contributions to the fscal authorities. Rössing Uranium paid the Government N$80.4 million in royalty tax, N$50.8 million in dividends and N$107.2 million in pay-as-you-earn tax on behalf of employees.

Payments to public enterprises such as NamWater and NamPower amounted to N$392.7 million, which includes the training levy of N$5.6 million paid to the National Training Authority. We also spent N$506.7 million in net salaries and wages.

Rössing Uranium gives rise to a signifcant ‘multiplier effect’ — the phenomenon where spending by one company creates income for and further spending by others. Given the prevailing market conditions, our primary focus was to procure goods and services as cost-effectively and effciently as possible and to focus on maximising our contribution to the local economy.

In 2016, we spent N$2.4 billion on goods and services for our operations. As during the previous reporting year, most of the procurement expenditure was on Namibian-registered suppliers, amounting to N$1.8 billion, accounting for 76.7 per cent of our total procurement expenditure.

We spent 14.0 per cent of our total procurement spend with South African suppliers and 9.3 per cent with international suppliers.

The bulk of the Namibian spend remains in the Erongo Region (46.0 per cent) and Khomas Region (40.4 per cent), while 13.6 per cent were spent in other regions of Namibia.

Preferential procurement and enterprise development

With the aim of securing economic growth, prosperity and the human dignity of all Namibians, the Government of Namibia developed the Harambee Prosperity Plan and the national, broad-based New Equitable Economic Empowerment Framework (NEEEF).

We remain committed to support Government development initiatives and policy frameworks. As such, we support local suppliers with the main focus on developing small- and medium enterprises, equipping them with the necessary skills and knowledge to compete with international suppliers.

During the reporting period, we purchased N$90 million worth of goods and services from previously disadvantaged Namibians (SMEs).

Summary of Rössing Uranium’s value addition

Our business provides a strong base for economic growth in neighbouring communities, in the Erongo Region, and in Namibia as a whole. Our economic contribution comprises the value we add by paying wages, employee benefts and Government taxes and royalties, as well as by making dividend and interest payments, and by retaining capital to invest in the growth of the mine.

In addition, we make signifcant payments to our suppliers of goods and services, both locally and nationally. The graphs shown below highlight some of the key socioeconomic contributions we have made to Namibia over the past fve years, ie from 2012 to 2016.