Rössing Uranium made N$6.48b in 2023 up from N$4.84b in 2022

Rössing Uranium’s Managing Director Johan Coetzee says they earned N$6.48 billion in 2023, compared to N$4.84 billion in 2022.
Coetzee, who presented the report during the launch of the 2023 sustainability report on Tuesday, added that their net profit after tax from normal operations was N$1,340 million, compared to N$840 million in 2022.
He said they declared N$177 million in dividends during 2023, up from N$50 million in 2022.
Rössing produced 6.4 million pounds of U3O8 and sold 6.9 million of U3O8 in 2023.
Around 1.8 million pounds were shipped to Western converters and sold to customers in North America, Asia (excluding China), Europe, the Middle East and Africa.
A total of 3.7 million pounds were shipped and sold to China.
According to Coetzee, an additional 1.4 million pounds were sold to non-utility customers (traders and funds) on the spot market, capitalising on the sudden price spike during the year.

Coetzee said Rössing benefited from the spot prices under the China National Nuclear Corporation (CNNC) sales arrangement.
Production in 2023 was in line with our operational plan and 10% higher than in 2022.
In 2023, Rössing Uranium mined 16.7 million tonnes, compared to 16.6 million in 2022.
Waste and low-grade ore totalled 6.8 million tonnes removed from the pit, while 0.1 million tonnes were dumped in-pit.
The stripping ratio of waste to ore declined as the operation moved deeper into the pit.
In 2023, 9.3 million tonnes of ore were milled, compared to 9.0 million in 2022.

A total of 2,920 metric tonnes of uranium oxide were produced, compared to 2,659 metric tonnes in 2022.
As a significant employer and purchaser of goods and services, Rössing made a significant annual contribution to economic development in the Erongo Region and Namibia.
Rössing’s total expenditure on goods and services was N$3.88 billion in 2023 (2022: N$3.42 billion), with local suppliers getting N$2.86 billion during 2023 (2022: N$2.54 billion).
South African suppliers benefitted N$487 million, representing 12%, while N$531 million was spent on international suppliers, representing 14%.
Most of Namibia’s spending remains in Erongo (41%) and Khomas (50%). Expenditures in the other areas of Namibia amounted to 9%, with the highest spending in the northern region due to the current supply of sulphuric acid agreement with Dundee Precious Metals in Tsumeb.
Rössing Uranium supported the Rössing Foundation and other community initiatives with an investment of over N$41 million in 2023 compared to N$29.4 million in 2022. Of this amount, N$38 million went to the Rössing
Foundation and about N$3 million was in-kind and cash contributions to worthy community initiatives.
At the end of 2023, Rössing Uranium had a workforce totalling 871 compared with 905 in 2022, with 98.74 per cent of the workforce being Namibian and only 1.26 per cent being Non-Namibians.

There were no fatalities, permanent disability injuries or significant process safety incidents recorded in 2023.
The All-injury Frequency Rate of 0.36 was lower than the target of 0.46, underlining our commitment to achieving zero harm.
The Rössing Board approved the Rössing Uranium LoME from 2027 to 2036 in February 2023.
A 13-year contract was signed with Beifang Mining to commence with a total contract mining service from 2024 to 2036. By the end of 2023, Beifang had mobilised a new fleet of heavy mining equipment to the site and an experienced workforce trained to operate this equipment.

The first blast was taken in the new Phase 4 pushback, ahead of schedule, on 21 December 2023.
Funds were also allocated for upgrades of the Rössing infrastructure and processing plant.
These include the construction of a 15MWe PV solar power plant and expanding the tailings storage facility to accommodate ten years’ additional tailings from the processing of Phase 4 ore.

Contracts were awarded for both projects by the end of 2023, with target completion by the end of 2024 and 2025, respectively.
Funds were also allocated to complete two feasibility studies for dewatering the tailings stream to a higher density (thickened) tailings and onsite treatment of plant solutions to reduce freshwater consumption.

Both studies involve the construction of pilot plants. The target completion of the studies is the end of 2024 to inform an investment decision for full-scale execution by the end of 2026.
Following the approval of LoME and in the face of increasing U3O8 prices, Rössing’s long-term strategy is now focused on identifying an economic pathway for achieving higher production rates from new ore sources and extending the LoME beyond 2036.

The potential for further expansion of the current SJ Pit is limited, and the focus is on developing a new open pit within the mining lease (“ML28”). The objective is to commence before 2030 and supplement feed from the SJ Pit to achieve higher production rates.
Coetzee said 2024 will be another critical year for Rössing Uranium as they begin with substantial pushback work for the Phase 4 extension while evaluating new opportunities that could potentially extend the life of mine beyond 2036.