Deputy Minister of Mines and Energy, Kornelia Shilunga, has expressed concern with the dissatisfactory level of local procurement in the mining industry, despite its potential to improve the plight of previously disadvantaged Namibians.

The minister made the remarks at the launch of Rössing Uranium's 2022 Sustainability and Performance Report in Windhoek on Monday evening.

According to Shilunga, it is crucial to empower the youth and previously disadvantaged where a mine is operating, to invest in related sectors such as agriculture, manufacturing and tourism, among others.

“This will, in turn, provide positive impetus to the local economy, with an opportunity to adapt to the mine’s presence and to ideally survive post-mine-closure.

I therefore encourage and call upon all operational mines to increase support to local businesses such as small mines, as well as to upcoming young entrepreneurs,” she urged.

The deputy minister commended Rössing Uranium for the launch, noting that the Sustainability and Performance Report is an important component of any operational company’s communication strategy and when done correctly, can inspire confidence among stakeholders and reinforce a company’s brand value.

Rössing Uranium's Managing Director, Johan Coetzee, at the same event, said the mine contributed approximately 4,4 per cent to the world’s primary production during 2022, with Namibia now being the third largest primary producer of Triuranium octoxide (U308) globally, after Kazakhstan, who continues to dominate the market from a supply side, and Canada.

“As a major employer and purchaser of goods and services, we also make a significant annual contribution to economic development in the Erongo Region in particular and to Namibia at large, with Rössing Uranium spending N. dollars 2.54 billion on local suppliers in 2022, compared to N. dollars 2.25 billion in 2021, accounting for 74 per cent of the company’s total procurement expenditure,” Coetzee revealed.

Additionally, an interim dividend of N. dollars 49, 7 million was declared and paid to Rössing Uranium's shareholders.

The mine, however, recorded a production decrease in 2022 of 16,6 million tonnes compared to the compared to 20,7 million tonnes produced in 2021.

The lower mining volume was due to the stripping ratio of waste to ore reducing, as the mining moves deeper into the pit.

Source: The Namibian Press Agency