Title of paper

2.1 Why the uranium rush?

The recent increase in uranium exploration and mining in Namibia is due to the fact that the global demand for uranium has increased dramatically. Concerns about the depletion of fossil fuels, oil reserves and climate change have sent uranium prices at times skyrocketing. Meanwhile, after the nuclear accident in 2011 in Fukushima the uranium price is extremely low putting some mining companies in financial difficulties and bringing some uranium projects to a halt.
Before the recent accident, uranium production from mines has been far lower than the demand for uranium by the nuclear industry worldwide. A new rush on uranium had started. Thus low grade deposits as found in Namibia were considered worth mining. Namibian uranium deposits are of low grade, generally between 100 and 300 ppm (parts per million) but in places as high as 600 to 700 ppm, that equals 0.06 to 0.07%. In comparison, the highest ore grades of 200,000 ppm (equals 20%) are found in Canada (Uranium Institute, Chamber of Mines Annual Report 2010/2011).
The price of about US$ 10/pound of U₃O₈ was relatively stable for many decades, but suddenly exploded to an astronomical apex of US$ 136 in mid-2007. In the following years it fluctuated between US$ 44 and 70 till after the accident in Fukushima the price dropped to US$ 52 in June 2011 and more or less stabilised in 2013 at around US$ 35/pound U₃O₈ (Cameco, 2013).²⁵
The renewed public debate about the safety of nuclear power plants after the nuclear accident at Fukushima and the actual costs as well as the decline in prices can have a negative impact on planned investments in Namibian uranium projects in the short and medium term and subsequently affect expected government revenue from company taxes and royalties from the uranium mining industry. There is no formal exchange for uranium as there is for other commodities such as gold or oil. Uranium price indicators are developed by a small number of private business organizations.²⁶
Namibia with a production of 5,200 tons in 2010 (valued N$ 887 million) was the world’s fourth largest uranium producer after Canada, Australia and Kazakhstan. After the exceptionally good rainy season in 2011, when open pit mining became problematic and other unfavourable circumstances occurred, Namibia’s position dropped to number five. If the planned projects get off the ground, Namibia could be producing 11,000 tons per annum by 2030, reaching a global market share of 12%. The Ministry of Mines and Energy has granted exploration licences (EPL) to 21 foreign companies from Australia, Canada, France, Britain, China and Russia in areas of Erongo, Karas and Kunene. Namibia, after 24 years of independence, is still dependent on foreign companies to extract its uranium resources.

Name of Mine	License Number (ML=Mining License EPL = Exploration License)	Start of Production	Expected Lifespan (Years)	Owner of Mine
Rössing Uranium	ML-28	1976	40	Rio Tinto, UK
Langer Heinrich	ML-140	2007	27	Paladin Energy, Australia
Trekkopje	ML-151	2013, now dormant	10	AREVA, France
Zhonghe	ML-177	2013	15	China Uranium, China
Valencia, Namibplaas	ML-149, EPL-3638	2015	11	Forsys Metal, Canada
Etango	EPL - 3345	2015	16	Bannermann, Australia
Husab, Ida Dome	ML-171, EPL-3138	2015	20	China Guangong, China
Omahola, INCA & Tubas Red Sand	ML-173, EPL-3496	2016	12	Deep Yellow, Australia
Marenica	EPL-3287	unknown	13	Marenica Energy, Australia

Table 1: Operating and planned uranium mines (Source: Allgemeine Zeitung, 23 Dec 2013).