Rössing Uranium officially launched its 2021 report to stakeholders, on 08 June
2022.
Speaking at the launch, Rössing Uranium’s managing director, Johan Coetzee said,
the primary purpose of the annual stakeholder report is to communicate timely,
reliable, and relevant information to inform and announce the company's
achievements and performance for the period under review.
He pointed out that, Rössing Uranium again had an excellent year (2021), both in
terms of safety and production, and celebrated 45 years of production.
“The company recorded an All Injury Frequency Rate (AIFR) of 0.29, beating the
record of 0.31 set in 2020, which is our best performance the mine has recorded in
the history of the mine,” he said.
Johan further explained that the company exceeded budgeted production targets
by a significant margin, as the 2 882 tonnes of U3O8 produced during 2021
represent a 16% increase compared to 2020.
“To produce this product, we had to mine 20.7 million tonnes of rock and process
9.6 million tonnes of ore.”
“We were able to achieve this excellent performance safely and efficiently through
the commitment and hard work of our own employees, as well as the support from
the contractors that are delivering services to us,” he said.
At the end of December 2021, Rössing had a total of 943 permanent employees,
99% of them being Namibians.
The company’s boosts a 20% representation of women in its workforce, who are
represented across all levels of the organization.
A total of N$930 million was spend on salaries and wages and a total of N$24.7
million was spend on training of our employees, both internally and externally.
Johan noted that, despite sales volume being 11% higher than in 2020, revenue
was 6% lower at N$4.26 billion due to the impact of a stronger Namibian dollar
against the US dollar.
“Rössing Uranium currently sells a portion of its product into an existing long-term
contract portfolio, and the remaining available production was sold to the China
National Nuclear Corporation (CNNC) Group.
“In 2021, 76% sales volume was delivered to Asia, of which 90% has been sold to
the majority shareholder CNUC/CNNC. The remaining 26% sales volume was
delivered under the long-term contract portfolio to North America, Europe, the
Middle East and Africa.”
As a major employer and purchaser of goods and services, Rössing Uranium made
significant annual contributions to economic development in the Erongo Region in
particular and to Namibia at large. Despite the prevailing market conditions and the
challenges posed by Covid 19 during 2021, Rössing total spend in 2021 amounted
to N$3.01 billion, compared to the N$2.77billion spend in 2020.
“Rössing remains committed to support local suppliers, including spend on
developing SMEs. As during previous years, most of the procurement expenditure
was on local suppliers, amounting to N$2.25 billion or 75% of total procurement
expenditure. 14% of procurement spend went to South Africa, whilst the remaining
11% was spend internationally,” he said.
The review period also saw the mine continue to demonstrate its value to Namibia
through contributions to the fiscal authorities. Rössing Uranium paid the
Government N$111 million in royalty tax, and N$167 million as pay-as-you-earn tax
on behalf of employees. No corporate tax dividends were paid in 2021.
Payments to public enterprises such as Namwater and Nampower amounted to
N$464.2 million. This amount includes a total of N$8 million that was paid as the
Vocational and Training levy.
Johan indicated that during 2021 Rössing Uranium invested about N$14 million in
Namibian communities, directly as well as through the Rössing Foundation.
Current Life of Mine of Rössing Uranium is 2026. With the support of our Board and
Directors and shareholders the mine is working very hard to secure a longer term
future and continued employment security for the mine and our employees.
“In November 2020, the Board of Directors approved funds to complete a bankable
feasibility study for extending the life-of-mine beyond 2026. This is underpinned by
a north-eastern extension of our existing open pit, referred to as the Phase 4
pushback, which can provide sufficient ore to continue production for another 10+
years. Work on the LoME project is progressing well and the final report and
recommendations will inform an investment decision by end 2022 or early 2023.”
“A major milestone for the LoME project was realised in July 2021, with the Ministry
of Mines and Energy extending the validity period of our Mining license for 15 years
to 2036.”
Johan indicated that in parallel to the LoME project, Rössing Uranium continues to
invest in and upgrade existing facilities on site to ensure the continued safe and
efficient production of uranium oxide.
“A total of 48 major engineering projects were undertaken during 2021, the biggest
being the construction of an additional 60,000m3 fresh water storage capacity at a
cost of just over N$100 million. A total of N$204 million was invested in these 48
projects.”
In conclusion, Johan said the Rössing Uranium Board and its majority shareholder
China National Uranium Cooperation (CNUC) have demonstrated their confidence
in the Rössing Team to execute the business’ long-term strategy, with a
commitment for increased technical support from CNUC. “We are confident that we
will do justice to this vote of support and look forward to continue to live up to
Rössing’s stated slogan of “Working for Namibia” for many years to come.”
Johan Coetzee
Managing Director
Rössing Uranium Limited
Please address your enquiries, comments, concerns or suggestions about the
Report to Stakeholders for 2021 to:
Daylight Ekandjo
Manager: Corporate Communication
Rössing Uranium Limited, First Floor
The Dome
5371 Welwitschia Street
Private Bag 5005
Swakopmund
T: +264 (0)64 520 2288 M: +264 (0)81 639 2950
daylight.ekandjo@rossing.com.na