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SWAKOP URANIUM

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U R A N I U M

Swakop Uranium own the second largest uranium-only mine in the world

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Swakop uranium is constructing and developing the Husab uranium mine, approximately 65km by road from the coastal town of Swakopmund in Namibia Writer Emily Jarvis Project Manager Tom Cullum

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Eleven giant Komatsu haul trucks have been assembled and handed over to the Husab project mining team.

wakop uranium was established in 2006 to explore, evaluate, develop and produce uranium oxide as a source of fuel for low cost, environmentally-friendly, nuclear power. Swakop uranium has identified as its first task “to deliver to its shareholders and the Namibian nation one of the largest and most efficient uranium mines in the world,” says Swakop’s Director: Communications and Stakeholder relations, Grant Marais. Cementing its place as one of the largest resource drilling projects globally, Swakop uranium has completed over 800,000 metres (or 800km) of combined reverse circulation and diamond core drilling since April 2006. The Husab area was targeted as an exploration area of interest in 200607. The geological reasoning behind this was that similar rock formations to those hosting the Rössing Mine to the north were interpreted to be concealed beneath the desert plain in the northern part of Swakop uranium’s Exclusive Prospecting license (EPl). The discovery holes were drilled in late 2007, the chemical assay results for the three discovery holes were returned from the laboratory in early 2008 and released to the market in February 2008. until April 2012, Swakop uranium was a 100% subsidiary of Extract Resources, an Australian company listed on the Australian, Canadian and Namibian stock exchanges. However, in April 2012, Taurus Minerals Limited of Hong kong became the new owners following a successful takeover of Extract Resources. At the end of June 2014, Swakop uranium moved its corporate head office from Windhoek to Swakopmund. The new offices, previously owned by Areva, will be referred to as the Husab Tower.

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Namibia is an investor-friendly country which has a great attitude towards foreign investment and securing the technical skills required for the job”

Husab uranium Mine Project Details in-Brief

Swakop uranium is constructing and developing the Husab uranium mine, approximately 65km by road from the coastal town of Swakopmund in Namibia. The mine is planning first production by December 2015 and will reach nameplate production by 2017. The Namibian government granted Swakop uranium a license on 30th November 2011 to develop the Husab mine, a project that will create about 1,584 permanent jobs and an additional 6,000 temporary jobs during construction. This will increase the number of people employed in the Namibian mining sector by approximately 17%. The project will furthermore create up to 16,000 indirect job opportunities as a result of the mining-multiplier effect. The Husab project officially kicked off on 18th April 2013 with a groundbreaking ceremony on the mine site.

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Just over a year later, on 8th May 2014, the start of mining operations was declared officially open by the Namibian President, His Excellency Hifikepunye Pohamba. On the previous day, the permanent road from the B2 transport route to the Husab mine was officially opened by Namibia’s Founding President, HE Dr Sam Nujoma. The road project included a 160m bridge over the khan River, linking the mine to the main B2 transport route leading to Swakopmund. This is the longest bridge built in Namibia since the country’s independence in 1990. The surfaced road connecting the mine with the Namibian road network, stretches over 22km. Swakop have received exceptional support in constructing roadways, water and power networks to the mining site. “Namibia is an investorfriendly country which has a great attitude towards foreign investment

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To signal the start of mining operations on the Husab project, HE Hifikepunye Pohamba, President of the Republic of Namibia, and other high ranking dignitaries set off a virtual blast accompanied by a loud bang. With the President are form left Mr Zheng Ke Ping, Swakop Uranium’s CEO, Mr Cleophas Mutjavikua, Governor of the Erongo Region, HE Dr Sam Nujoma, the Founding President of the Republic of Namibia, Hon Isak Katali, Minister of Mines of Energy, HE President Pohamba, Mr. Wang Yiren, Deputy Minister of China Atomic Energy Authority, Mr He Yu, Chairman of China General Nuclear Power Company (CGN) and Mr Zheng, Senior VicePresident of CGN.

and securing the technical skills required for the job,” says Marais. Husab is being developed as a low-risk, conventional, large-scale load-and-haul open pit mine, feeding ore to a conventional agitated acid leach process plant. The mine has a potential life of more than 20 years.

Developing namibian infrastructure

Since the Husab project was officially approved in October 2012, Swakop Uranium has made significant progress. Construction of the 37 hectare Husab contractors’ village is complete. The village is a showcase in Namibia, comparing well with the standards of mining companies around the world. Before officiating at the Commencement of Mining Operations on 8th May, President Pohamba visited the Husab project construction village. He inspected the living quarters, the dining room, the kitchen,


DRA GLOBAL

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RA is a multi-disciplinary engineering group that delivers mining, minerals processing and infrastructure services from concept to commissioning as well as comprehensive operations and maintenance services. We have established ourselves as leaders in these areas in Africa and are rapidly expanding our business in other parts of the world, with in excess of 300 active projects worldwide. Our expertise cover a wide range of commodities including uranium, gold, platinum, coal, ferrous metals, diamonds, base metals, potash and rare earths.

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DRA has specialist capabilities in the design of mineral processing plants for a wide range of commodities and are recognised for our expertise in processes such as comminution, flotation, gravity concentration and hydrometallurgy. Our expertise extends to all fields of worldclass process engineering – electrical and instrumentation, process, mechanical, civil and structural, infrastructure – as well as materials handling. We can tailor our services to meet the needs of our clients, offering both total engineering and customised project solutions.

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Our mine design and engineering team, consisting of integrated teams of mining, mechanical, electrical control and instrumentation specialists, offers engineering, procurement and construction management (EPCM).

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Our vision has been to deliver a complete service to clients anywhere in the world, building on our reputation for quality and safety and the ability to deliver on time and under budget.

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DRA Operations, known in South Africa as Minopex, specialises in the operation and maintenance of mineral processing plants on a contract basis for our mining clients. Globally, we employ over 2,000 people and are recognised as leaders in the provision of outsourced operations and maintenance services.

Safety

Our People-Based Safety® approach strives to go beyond behaviourbased safety. This approach enhances regulatory compliance with empowerment, ownership and trust, creating a Total Safety Culture. Our people-based approach to safety has allowed us to achieve a remarkable record of over 18 million man-hours without incident.

DRA PROJECTS (PTY) LTD Tel +27 11 202 8600 (South Africa) Fax +27 11 202 8807 (South Africa) Email info@DRAglobal.com

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Civil construction and thickener steel construction of the Counter Current Decanting (CCD) area.

Swakop Uranium gives special attention to the recruitment of females in a male dominated mining world.

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the ablution facilities and recreational areas. He also spoke to several of the residents in the village. During his speech later in the day, he praised Swakop uranium on the excellent quality of the accommodation facilities in the village, where up to 4,000 workers will be housed during the life of the project. “The facilities are even better than some Windhoek hotels,” he said. He further encouraged workers to cherish the employment opportunities at the Husab project: “As a national workforce, Namibians should all focus on improving their productivity,” he said. By the end of August 2014, the onsite project workforce stood at 3,500, of whom 87% were Namibian citizens. “Higher levels of Namibian citizens are targeted as we reach the production stages, as local human capital is important to us,” Marais adds. Swakop uranium has also confirmed plans to build a 500,000 tonne sulphuric acid plant at the mine. Sulphuric acid is a key chemical used to recover uranium in an ore body. Construction of the sulphuric acid plant will start in October 2014. The Husab mine is expected to utilise all the sulphuric acid produced at the envisaged plant. Additional acid, if needed, will be imported or sourced locally.

Komatsu Haul trucks

Stripping activities in Husab’s Zone 1 pit. After twenty years of mining, the Zone 1 pit will be about 3km long, 1km wide and 412m deep.

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Manufacturing and assembly of the massive komatsu haul trucks that will be the primary movers of waste and ore on the Husab mine, is well in progress. The trucks, each with a payload of 327 tonnes, are delivered in a knockeddown kit form to the Husab site, where they are being assembled. The tyres, which are 4m in diameter and weigh 5.3 tonnes each, are shipped from Japan as part of a supply agreement between Swakop uranium and Bridgestone. The first 11 trucks have been commissioned

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rocKWell autoMation rockwell automation supplies control system for swakop uranium’s Husab Mine Rockwell Automation has been selected to supply and integrate the complete automation and control architecture at Swakop uranium’s Husab uranium Project in Namibia. The project represents the single largest investment by China into Africa and, once completed, will be the second largest uranium mine in the world. Rockwell Automation will supply the complete control system software and hardware; low voltage variable speed drives; soft starters and intelligent motor protection; as well as the engineering and integration of the complete process control system. While the cost of a control system makes up a very small percentage of the overall project capital cost, its failure jeopardises the entire project capital value, which is why Rockwell Automation was selected as the integrator of the process control system. Rockwell Automation provides a high degree of certainty and reliability of project implementation through a standardised approach, coupled with strong domain expertise and one of the largest teams of control and electrical engineers in the region. Rockwell Automation Sub-Saharan Africa is a wholly-owned subsidiary of Rockwell Automation, Inc. Headquartered in Milwaukee, Wisconsin, Rockwell Automation, Inc. is the world’s largest company dedicated to industrial automation and information, employing over 22,000 people serving customers in more than 80 countries with an established reputation for innovation, quality and reliability. Enquiries: Michelle Junius Field Marketing Specialist Rockwell Automation tel +27 (11) 654-9700 fax +27 (11) 654-9706 cell +27 (82) 785-4107 email mjunius@ra.rockwell.com

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aBeco tanKs

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BECO Tanks is no stranger to the water storage tank industry and a name that has stood its ground for over 30 years.

Swakop Uranium involved a group of scientists to assist with the removal of some of the Welwitschia plants that had to be sacrificed because of the construction of the Husab mine and associated infrastructure.

and handed over to the mining team. The next batch of 12 trucks will be handed over by the end of 2014. Swakop Uranium will use a fleet of 43 of these haul trucks, which will be the primary movers of waste and ore on the Husab mine. The Husab mine has also put two ERS7495 electric rope shovels and two FS6060 hydraulic face shovels into operation. Swakop uranium will use three rope shovels in tandem with four hydraulic face shovels. The third units for both ERS7495 and FS6060 are currently being assembled. Rope shovel assembly started in December 2013, while components for support equipment such as water trucks, dozers, graders and frontend loaders are arriving on site as planned. While the ERS7495 shovels will load between 105 and 110 tonnes per scoop, thereby filling a 327 tonne Komatsu haul truck in three loads, the FS6060 has one size bucket loading 62 tonnes.

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Each shovel takes 15 months to manufacture and deliver to site. unlike the trucks, the shovel components are assembled into an operating shovel for the first time on site. The CAT rope shovel was the first shovel of that size and make that was assembled in Namibia by the Barloworld team. While hydraulic face shovels are mainly used for ore production and more precise mining capability, the rope shovels are used mainly for waste mining. Four large le Tourneau front-end loaders and three drill rigs will also be used on the Husab mine. Drills typically take 12 months to manufacture and deliver to site. The drills arrive essentially complete and all that is assembled on site is the tall boom.

operational readiness Programme

In the meantime, Swakop uranium has started filling permanent positions well in advance of the

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Established in 1983 by then founder and now CEO, Mannie Ramos identified a need for water supply to communities with limited resources and set about to satisfy this need without compromising hygiene, safety or quality. 30 years on and ABECO Tanks continues to deliver on this promise, having successfully installed over 20,000 tanks across 32 countries. They are also the only manufacturer of pressed steel tanks that is SABS approved and ISO registered. ABECO Tanks has recently modernised its factory and invested in the latest equipment allowing them to adapt to the demand in the industry. In keeping with its commitment to deliver uncompromised storage solutions, ABECO has been awarded the exclusive rights to represent Tank Connections and provide precision RTP (Rolled, tapered panel) tanks to the African market. ABECO offers a full design manufacture and installation services for ground level, elevated and circular galvanised water tanks and have a division that focuses purely on special custom tanks. They have also paid particular attention to the design of all its types of tanks to ensure they are easy to install and transport especially to remote locations where resources are limited.

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opening of the mine as part of the Operational Readiness Programme. This will ensure that staff will be sufficiently trained and ready to hit the ground running. To this end, Swakop uranium has initiated a scholarship programme to reduce the skills shortage in various fields in the longer term, signing various agreements with Namibian universities. “Where possible, we will take students on for work experience and tours in order to develop the human population of the country,” Marais states. Moreover, Swakop uranium publically supports the Namibia Institute for Mining Technology (NIMT) and continues to assist in skills development for unemployed individuals. Graduates will be afforded the opportunity to develop their skills and gain experience with Swakop uranium through a structured graduate training programme, thus providing the base to develop future leaders. To ensure development to a postgraduate level, the company will sponsor highly motivated and talented Namibians to study abroad and obtain postgraduate Master’s degrees at a university in China. Junior level employees will have specific training programmes to ensure upward mobility in the organisation. The mining training programmes are on-going and progressing very well. Six simulators were delivered to site and are in full operation supporting the training programmes.

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naMsPace

N Various nationalities and cultures are represented at the Husab project, all working in unison towards the same goal.

His Excellency Hifikepunye Pohamba (left) and Mr He Yu, Chairman of Swakop Uranium’s shareholder, China General Nuclear Power Company.

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tel +264 (0) 64 405 460 email info@namspace.net

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Purolite

P Swakop Uranium Foundation Trust, assisted the Asser Kepere pre-primary school in Arandis, to build a fence around the school and fix the cracks in the classroom walls.

urolite is a leading manufacturer and developer of ion exchange, catalyst, adsorbent and specialty resins. Established in industries such as hydrometallurgy, water treatment, power and ultra-pure water, Purolite brings more new products to the market than any other resin company. We are proud to supply ion exchange resin for the recovery and upgrading of uranium to Swakop uranium’s Husab mine. Our proven technologies efficiently and economically extract thousands of metric tons of uranium, gold and other metals for customers around the world. With the largest international technical sales force, global production and dedicated R&D, we work hard to develop solutions to complex problems. Contact Purolite to see how we can improve your processes.

sHer Policy

Safety is the most critical element to any construction or mining business and Swakop are proud to have completed approximately 3 million man hours without accident. “This reinforces the entire safety culture we have put in place. We would like our workers to go home in the exact same state they arrived at work. Our rigorous SHER

amspace specialises in prefabricated modular buildings, standard and customised mobile units of all sizes and turn-key mine and construction camps. Based in the Namibian coastal town of Swakopmund with a seaport on their door step, Namspace is strategically situated for projects throughout Namibia as well as along the west-coast and central regions of Africa. Its latest flag-ship project, the 4300-man construction camp and 2600m² EPCM office buildings for Swakop uranium’s HuSAB uranium Mine, has been successfully completed within the stipulated time frame of 12 months. The camp included various accommodation units, diners, kitchens, recreational rooms, laundries, cold and freezer rooms and more.

Grant Marais - Director, Communications and Stakeholder Relations

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tel +27 (0) 11 792 8251 email sales@southafrica@purolite.com

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MINE & CONSTRUCTION CAMPS – the full turnkey solution Head Office & Factory: 74 Tannenhof, Swakop River Plots, Swakopmund Tel: +264 (0) 64 405 460 | Fax: +264 (0) 64 400 995 | Email: info@namspace.net Windhoek Office: Tel: +264 (0) 81 148 4221

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A section of the 22km road that runs from the B2 highway to the Husab Mine. The road offers one of the most beautiful drives in Namibia.

fraser aleXanDer Our construction capabilities are embedded in a seamless combination of skilled manpower and specialised equipment which is deployed across a variety of challenges. Bulk earthworks Infrastructure development Pipelines Landfills Concrete structures Pollution control tel +27 (0)11 929 3600 fax +27 (0)11 397 3006 email construction@fraseralexander.co.za

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safety programme ensures safety above all,” Marais highlights. Environment and health are also equally as important to make sure that radiation levels remain at low levels. “Our Safety, Health, Environment and Radiation policy manages any and all aspects of safety in the workplace accordingly,” Marais comments. “Mining is not just about extracting ore. For us, it is more important that we create a sustainable future for the area in which we are developing the Husab mine; in particular focusing on the socio-economic side of the business which we feel is in dire need of assistance.” As such, Swakop uranium have put in place a sustainability programme that looks after the triple bottom line. What’s interesting about the location of the Husab project is that it is built in the native area of the endangered Welwitschia plant. This 1,500 year old plant grows extremely

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slowly and is only present in parts of Namibia and Angola. Swakop uranium have taken it upon themselves to preserve the plant as Marais further explains: “We want the environment to be as close to what it was before we were present here, to preserve these plants for the next generation. Consequently, we have invested significant resources in researching this plant and its root structures, placing a GPS point to the 50,000 we have discovered in the area; photographing each one and recording their state of health, gender and size. We have even moved roads to avoid disrupting the Welwitschia plants, and of course this is not just limited to preserving this one form of vegetation; it extends to all plants and trees in the area.”

Wage agreement

Another highlight was the signing in September 2014 of a substantive agreement between Swakop uranium

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enVironMental control engineering & serVices

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CE’s core business is the design, supply and installation of air conditioning, ventilation, refrigeration, climatic and air pollution control systems. ECE’s specialized climatic control and mechanical engineering expertise embraces a diverse base, which includes the mining, metallurgical, steel, paper, food and general industrial sectors. We remain independent of all equipment suppliers which allow flexibility when sourcing and supply equipment appropriate to each specific application. The management of ECE own the company. This means that we can both promise and fulfil our commitment to give all our clients every possible assistance and attention as we are personally involved with each project. tel +27 (0) 11 791 2950 fax + 27 (0) 11 791 2955 email ece@eceworld.co.za

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The perfect solution is within your reach

Fraser Alexander is a leading mining and industrial services company able to develop solutions to complex problems in collaboration with clients. Our construction capabilities are embedded in a seamless combination of skilled manpower and specialised equipment which is deployed across a variety of challenges: Bulk earthworks; civil structures; pipeline construction; construction of waste sites; are a few examples of our capabilities. Tel: +27 (0)11 929 3600 • Telefax: +27 (0)11 397 3006 E-mail: construction@fraseralexander.co.za

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and the Metal and Allied Workers union of Namibia (MANWu) which covered contractors’ employees for the remainder of the Husab mine’s construction period. According to the agreement, MANWu members working on the project will receive a wage increase. A fair negotiated settlement was reached on hourly pay rates for the contracting company’s employees which took all macro and micro economic factors into account. According to Percy McCallum, Swakop uranium’s Vice-President of Human Resources and Business Support, the negotiations with the employee representatives and MANWu represent a further step in a smart partnership between the parties. “This milestone is important to all parties as it ensures industrial peace and commitment from MANWu and contractors to build the Husab project on time thus ensuring completion of Namibia’s most significant project,” he added. MANWu is committed to, and will support the contractors in improving productivity initiatives and encouraging MANWu members to refrain from being absent from work without permission or being guilty of poor timekeeping.

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Nine Swakop Uranium bursary holders had the opportunity to expand their practical knowledge when they completed internship stints at the company between June and August 2014.

community involvement

Swakop Uranium firmly believes that the company’s reputation will not only be measured on their exploration, mining activities and contribution to the economy, but will be affected by the manner in which the company conduct themselves through interaction with the broader Namibian community and the environment. Swakop uranium has therefore committed itself to social and empowerment aspects such as local procurement, local recruitment, involvement in social responsibility programmes, training, education and sound environmental management practices.

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The Founding President of Namibia, His Excellency Dr Sam Nujoma, unveils the solid granite road marker at the B2 turn-off to the Husab mine. The marker weighs a massive 34 tonnes.


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The Swakop uranium Trust has furthermore identified some key areas of involvement which include training and education, environment, infrastructure, health and entrepreneurial development. These categories adequately deal with the three sustainability pillars of social, economic and environmental focus. Examples of CSI projects that are supported by the Swakop uranium Trust are Ellie’s vegetable garden in Arandis (the town nearest the Husab mine site) and the Tears of Hope Orphanage in Swakopmund. The Trust furthermore awards bursaries for promising Namibian university students on an annual basis and is supporting an initiative to encourage Namibian entrepreneurs to develop manufacturing businesses to support mine procurement. In September 2013, the Swakop uranium Foundation responded to the Namibian government’s call for assistance to thousands of drought victims in Namibia by donating an amount of N$100,000 to the government’s drought relief fund. In November 2013, Swakop uranium handed over a donation of N$100,000 to the President’s Charity Fund. This fund is a non-profit organisation established by His Excellency Hifikepunye Pohamba in 2012 with the aim of meeting government half-way in its efforts to alleviate poverty and provide quality education, especially among orphans and vulnerable children. The company also assisted the Asser kapere pre-primary school in Arandis, the town nearest to the Husab mine site, to build a wall around the school and fix the cracks in the classroom walls. The donation will also enable the school to buy basic educational material for the children. Swakop uranium attaches great importance to its goal of localisation in Namibia. “An example of our commitment to local suppliers is Ben Kahirimana of Office Experts, who have grown their businesses exponentially by offering core services to Swakop uranium and to the growing communities around them.” Marais speaks for the entire company when he surmises that Swakop uranium herald a great importance in developing the people of the Namibian region in a sustainable manner: “We are very proud of our achievements within both the community and the Husab mine project, and are committed to supporting the Namibian economy.”

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Otraco Southern Africa 70 Mokwa Street N4 Gateway Industrial Park Pretoria, South Africa T: +27 (0)12 803 0277 F: +27 (0)12 803 0220 E: info@otraco.co.za

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E n q u iries Tel (UK): +44 (0) 1603 559 151 Tel (SA): +27 (0) 21 527 0053 ben.weaver@outlookpublishing.com

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SWAKOP URANIUM Husab Tower, 2nd Floor, c/nr Leutwein and Nathanael Maxuilili Streets, Swakopmund, Namibia Tel: +264 (0) 64 410 9000 Fax: +264 (0) 64 410 9001

www.swakopuranium.com


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