Thursday 13 February 2014

Namibia: Areva deal falls through

Areva, the French nuclear firm, says it is not selling its desalination plant in the Erongo Region, despite some international and local media reports to the contrary.
“Areva is not selling or pulling out of the desalination plant,” Areva country manager Hilifa Mbako said in an interview yesterday.
Mbako explained that what Areva had decided to do was to look for a new local partner for the plant.
“We have identified NamWater as a possible partner and we are in negotiations with them, but matters being discussed are confidential at the moment,” Mbako said.
When the plant was launched in 2010, it was announced that the plant under the name, Erongo Desalination Company, would be a 50:50 joint venture between Areva and the United Africa Group. The water from the plant was meant for the now suspended Trekkopje uranium project and the excess water was going to be sold to other mines in the region.
“Some things, which were supposed to happen between Areva and United Africa did not take place,” he said, confirming that United Africa was no longer a partner on the plant. He, however, did not elaborate further.
Mbako said the plant is supplying water to NamWater and Swakop Uranium, which is developing the Husab uranium mine and the Rössing Uranium mine.
The plant has a current capacity of 20 million cubic meters of  water per annum and the Trekkopje Mine was expected to use only 13 million cubic meters of water per annum from the plant.
In late 2012, Areva decided to suspend the Trekkopje uranium mine project. The company said it hoped to resume the project in 2016, if the uranium price has recovered sufficiently by then.
The suspension of the project came after the company had revised the resource estimate for the Trekkopje from 45 200 tonnes to 26,000 tonnes since chemical analysis of ore samples showed much lower uranium concentrations than expected from radiometric monitoring, in particular for low grade ores.
Mbako said yesterday that there are no plans to restart the Trekkopje project.
“The market conditions have not changed to convince us otherwise. The price of uranium at the moment is hovering between US$34 and US$36 per pound. The ideal price should be between US$66 and US$70 per pound,” he said.

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