JOHANNESBURG (AFP)--Uranium deposits in Namibia's deserts, which
could make the country a top producer of the nuclear fuel, are
drawing growing foreign interest, seen in this week's visit by
Russian President Dmitry Medvedev.
The first-ever visit by a Kremlin chief Wednesday and Thursday
is expected to include a delegation of hundreds, with an emphasis
on reviving cooperation in uranium mining and energy
production.
"The whole energy issue will be discussed," Namibia's charge
d'affaires in Moscow said.
Russia has shown interest in Namibia since 2007. An exploration
license was awarded to a joint venture led by Tekhsabexport, a
Russian state firm that sells uranium. Moscow offered Namibia its
controversial technology for floating nuclear plants.
"Nothing has happened" since then, said Robin Sherbourne, group
economist for South Africa's Nedbank in Windhoek. "We'll see what
happens this time."
Such projects are spreading across this southern African
country, which aims to benefit from renewed global interest in
nuclear power with its large uranium deposits, which are currently
mined at only two locations.
The main mine, Rossing, runs five kilometers long and 350 meters
deep - but was threatened with closure in 2003 when prices for
uranium oxide plunged to nearly nothing as the global supply was
inflated by enriched nuclear fuel from the former Soviet Union.
But fears of climate change have revived the search for
carbon-neutral energy, sending uranium prices back up.
More than 40 reactors are being built in 11 countries, notably
in Russia. The International Atomic Energy Agency expects that at
least 70 nuclear power stations will be built around the world in
the next 15 years, doubling the global supply of nuclear
energy.
Rossing - majority owned by Australian giant Rio Tinto (RTP)
with a 68.6% stake, but with a 15% stake held by Iran, 10% by South
Africa, and 3% by Namibia - announced a $112 million expansion in
2006.
The same year, Australia's Paladin Energy (PDN.AU) re-opened the
Langer Heinrich mine, also located near the Atlantic coast.
That has propelled Namibia to the top ranks of global producers,
behind only Canada, Kazakhstan and Australia, with output of 4,366
tonnes of uranium oxide - representing 10% of the world's
production.
And the industry's growth is just beginning. The government
awarded three licenses last year, and the French group Areva SA
(CEI.FR) in 2007 bought the Namibian firm holding exploration
Trekkopje, where production is expected to begin by year end.
"Namibia could increase its production to 42 million pounds (a
four-fold increase) within five years, which could make us Number
1," Sherbourne said.
To achieve that, Namibia first must tackle two major
obstacles.
The desert has no water needed to control the dust and radiation
from the mines. Areva has built a desalination plant on the
Atlantic coast, which could eventually meet the growing needs.
The country also lacks enough energy. Namibia already imports
half of its electricity from South Africa, which is suffering an
energy crisis itself.
Windhoek is considering new coal or gas-fired plants, and has
floated the idea of building a nuclear plant by 2018.
