• Mining

Beifang to take over Rössing mining operations

Rössing, Namibia's oldest continuous uranium mine, signed an agreement with Chinese contractor Beifang Mining Technology Services (Namibia) (Pty) Ltd. in May to take over all mining operations of the Erongo mine by 2027.

Rössing's managing director, Johan Coetzee, said the primary reason for Beifang taking over the mining operations is due to the necessity for a fleet of smaller machinery to extract ore.

Rössing's current fleet consists of 15 Komatsu 730E 180-tonne trucks, which are too large to operate efficiently at a depth of 410 metres. Beifang, meanwhile, will purchase a fleet of 100-tonne trucks for deployment, he said.

The savings from acquiring a new fleet are earmarked for the processing plant, he added.

Rössing's SJ open-pit mine is already 3.5 km long and 1.5 km wide and will be excavated approximately 60 metres deeper in the future.

New phases

The plan is also to increase the amount of rock mined to 30 million tonnes per year. Coetzee explained that phases two and three of the new plan to extend the mine's lifespan involve mining at the bottom of the pit, which will be managed by Rössing's own employees and fleet until 2026.

"But the pit is getting narrower and narrower. Essentially, by the end of next year, we will reach a point where the bottom of the pit will be too narrow for us to use these large trucks," he said.

"In the meantime, for phase four, a portion of the pit will be expanded, but the first 200 metres of it will be just waste. Therefore, the uranium that we mine ourselves will have to pay for the removal of that rock," he explained.

"So, what will happen next year after Beifang hires personnel and purchases smaller 100-tonne trucks [is that] they will start opening up that area.

"In 2025, there will be enough space for our trucks to operate there and their smaller trucks to fit in. In 2025, we will exchange the two fleets. Rössing will continue mining (phase four), and Beifang will work on the narrower pit with their smaller machinery. By the end of 2026, we will encounter uranium again, and our fleet will stop mining, and Beifang will take over from us," he added.

"We will always mine in two separate areas, and we will not mix the two fleets," Coetzee noted.

Focus on Namibians

Coetzee said Beifang was selected from approximately 20 companies that had shown interest.

"What is crucial is that the agreement with Beifang stipulates that they will hire 95% Namibians, although – because Beifang is a Chinese company – their top management will include Chinese citizens," he said.

Rössing also updated the closure plan for the mine. Without approval for the extension, the mine would have had to close in 2026, according to Coetzee.

Namibia currently does not have legislation in place to regulate the closure of a mine, so Rössing's management has approached government to approve its plan. Since its inception in 1976, Rössing has been placing funds in a trust to be able to pay for the closure plan, he added.

Local stakes

Rössing employs approximately 900 workers, of whom 98.8% are Namibians.

The company is 68.6% owned by China National Uranium Corporation (CNUC), a subsidiary of China National Nuclear Corporation (CNNC). Other shareholders include Iran's foreign development enterprise (15.3%), South Africa's Industrial Development Corporation (10.2%), independent shareholders (2.5%), and the Namibian government with 3.4%.

However, the government holds 50.01% of voting rights in decision-making through various directors representing Namibia, Coetzee said.

Rössing recorded a record profit of N$840 million last year and paid out dividends of nearly N$50 million in August 2022.