Adequate water supply boost uranium output

Mining expected to drive growth in 2022
The mining composite index declined month-on-month by 4.9% in July 2022 and recorded positive growth of 24.5% year-on-year.
Phillepus Uusiku
Data released by the Namibia Statistics Agency (NSA) indicated that gold and uranium output improved in July 2022, while diamond and zinc production declined when compared to June 2022.

When compared the corresponding period in 2021, diamond and uranium output increased, while the production zinc and gold declined.

During July 2022, 700 tonnes of uranium were produced, compared to 535 tonnes and 518 tonnes produced in June 2022 and the corresponding period of 2021, respectively.

The acceleration in the production of uranium was attributed to the high-grade ore mined. The adequate water supply required to mine and process uranium minerals efficiently also contributed to the increased production, NSA pointed out.

In addition, the production of gold bullion stood at 444 kg in July 2022, compared to 435 kg and 620 kg recorded in June 2022 and in the corresponding period of 2021, respectively.

The improvement in the production of gold bullion was attributed to high-grade ore being mined and the expansion of operations in mining activities that were undertaken during the period under consideration, NSA said.

Moreover, the volume of diamonds produced in July 2022 amounted to 191 415 carats, compared to 219 928 carats and 135 237 carats recorded during the previous month and July 2021, respectively.

Furthermore, Namibia produced 6 465 tonnes of zinc concentrate and contained during the review period, compared to 6 845 tonnes and 6 938 tonnes recorded for June 2022 and the corresponding period of 2021, respectively.

The deterioration recorded in the production of zinc concentrate and contained on a monthly basis was attributed mainly to low-grade ore mined during the period under review, NSA added.

As a result, the mining composite index declined month on month by 4.9% in July 2022, in contrast to a growth of 13.3% posted in June 2022. However, the index recorded a growth of 24.5% year-on-year.

According to the Bank of Namibia (BoN) Economic Outlook, the domestic economy is expected grow 3.2%, mainly on account of anticipated better growth in the mining industry, particularly diamonds and gold. One of the risks to Namibia’s economic growth for 2022 is water supply disruptions that continue to affect mining production at the coast, BoN said.

Other risks to domestic growth are predominantly in form of monetary policy tightening around the world and high costs of key import items that are likely to persist for a long time, the central bank said.-phillep@nmh.com.na