Rio Tinto Rössing Uranium expects huge financial loss

Rio Tinto Rössing Uranium admitted recently it is bracing for a financial impact on its 2014 financial year, caused by a huge production loss after a leach tank failed in the mine’s production plant on 3 December last year, causing a total shutdown of all processes.

In a statement, the mine’s managing director Werner Duvenhage said the mine’s management is currently reviewing its strategy for year 2014 to respond to the setback as best as possible.

“The leach tank failure will have an impact on the company’s production targets and its financial results in 2014. The company’s management team is currently reviewing the 2014 plans,” Duvenhage stated.

The full cost of the shutdown and the damage is still in the process of being assessed, according to Duvenhage, but, in a proactive move, Rössing used the downtime for maintenance work and also carried out improvements and restoration work to prevent such incidents from recurring. The mine has twelve leach tanks. Duvenhage again reite-rated the spill caused by the leach tank failure was contained safely, and with no environmental damage or injury or death to any employees.  Late in 2013, the mine did indicate though, that a number of workers were treated for light injuries during the cause of containing the spill.

Since last Friday the mine systematically started to reactivate all its production operations on a reduced scale, and once given the green light it would return to full production.

Protea Hospitality Group in Namibia - no changes after acquisition

“They are not going anywhere and it will be business countrywide as usual under the Protea Hotels brand”.

This according to Arthur Gillis, CEO of the Protea Hospitality Group, who gave reassurances this week that the acquisition of Protea Hospitality Holdings by global hotel group Marriott International, will not affect employment or change the operational status quo at any Protea Hotel in Namibia and throughout the continent.

Apparently staff at a coastal Protea Hotel worried that they might be faced with retrenchments when Protea Hospitality Holdings is taken over by Marriott International in April.

“There are often misconceptions about how Protea Hotels operates.

We are a hotel management company and we manage and market hotels on behalf of owners in a management, lease or franchise agreement. We have equity in a number of hotels on the continent, but in Namibia we happen to have franchise agreements.

“What this means is the Protea Hotels management principles, systems and brand standards are applied at these hotels, but the physical assets and staff remain with the owners of the hotels,” said Gillis. “The sale of the management company therefore has no bearing on the physical assets or staff.”

He reiterated that there would be no job losses as a direct result of the sale, and that the Protea Hotels in Namibia would continue to operate normally, retaining the Protea Hotels branding.

There are 10 hotels in Namibia with which Protea Hotels has franchise agreements: Guest House Indongo, Protea Hotel Fürstenhof, Protea Hotel Walvis Bay, Protea Hotel Pelican Bay, Protea Hotel Ondangwa, Protea Hotel Zambezi River Lodge, Protea Hotel Thüringer Hof, Protea Hotel Burning Shore, Protea Hotel Long Beach Lodge, and Protea Hotel Sea View Zum Sperrgebiet.

Protea Hospitality Holdings currently has 116 hotels with 10 148 rooms in seven African countries. As part of the transaction, Protea Hospitality Holdings will create a property ownership company to retain ownership of the hotels it currently owns, entering into long-term management and lease agreements with Marriott for such hotels. The property ownership company will also retain a number of minority interests in other Protea-managed hotels.

With the Protea Hospitality Holdings acquisition, Marriott will become the largest hotel company in the Middle East and Africa region, nearly doubling its distribution there to more than 23 000 rooms.

Мясная промышленность Намибии пострадала от негативных последствий засухи

Говяжья промышленность Намибии пострадала от негативных последствий засухи в течение последних трех лет. Это выражается в остром дефиците скота на мместном рынке.

Мясная корпорация Намибии (Meatco) сообщает, что фермерам не хватает животных для оптимального производства мяса.

"Это можно объяснить тем, что производители были вынуждены продать большую часть своего скота в прошлом году, чтобы избежать возникновения убытков, поскольку пастбища были истощены засухой. Таким образом, наличие убойного скота в Намибии находится на рекордно низком уровне и Meatco ожидает, что объем забоя составит лишь около 78 000 голов крупного рогатого скота, что станет самым низким показателем в истории корпорации", - заявили представители компании.

Кроме того, большая часть отъемышей, импортированных в страну в прошлом году, смогут быть поставлены на рынок лишь в 2015 году, поэтому 2014 год станет довольно сложным для местного скотоводческого сектора и мясной промышленности.

До сентября прошлого года , Намибия экспортировала более 222 200 крупного рогатого скота в Южную Африку и Анголу.  Статистика показала, что 63 % КРС, проданного за этот период, были отправлены на экспорт.

Namibia: Ministry of Fisheries and Marine Resources will decide on the fate of the damaged yacht

The Ministry of Fisheries and Marine Resources will decide next week on the fate of the damaged yacht, Miscky and its cargo, which has washed ashore the infamous Skeleton Coast last Sunday.

The yacht, belonging to Michael Kuun from Benoni in South Africa, which after a dramatic ocean rescue got lost at sea while headed for St Helena Island in December last year, was discovered by staff of Northern Namibia Development Company near Angra Fria.

On Monday, 23 December 2013, Kuun was brought to Cape Town aboard the oil tanker, Aqua Fortune, after he abandoned his yacht that was damaged by a storm on the sea.

Kuun said that he and his girlfriend, Wendy Swanepoel, were supposed to sail across the Atlantic Ocean en route to Mexico but it did not work out as planned.

The two left for Mexico earlier this week and have not decided on a return date.

“We are now flying there. Thus, we won’t be coming to Namibia to collect anything. Speaking to Johan van Rooyen, who found the yacht, it sounds like a lot was already removed off it before he got to it. I’m not sure there is anything worth saving. One has to consider the costs involved in getting to Namibia, as well as the time it would take, which we just don’t have at this point.

Fisheries and Marine Resources permanent secretary, Ulitala Hiveluah confirmed the stranding of the Miscky near Angra Fria, saying that officials will conduct an investigation.

“I have instructed them to visit the site and to report back to me what should be done. They are now on a sampling trip and will reroute their trip to the Kunene mouth where the yacht was washed ashore. They are expected to return by Wednesday,” said Hiveluah.

According to Van Rooyen, most of the valuables, such as the safe with jewels and electronic equipment, were no longer on the yacht. The police was also informed that a .38 special revolver was on board, but that also has disappeared before the yacht was washed out at the Namibian coast.

Namibia: 2014 January is the coldest month

Temperature plummeted to its lowest ever in January in several Namibian towns this week.

Since Sunday, the cold weather over the southwest of the country, caused by a cut-off low pressure system situated west of the Lüderitz area, drove in the cold to parts of Namibia.

According to Simon Dirkse of the Namibia Meteorological Services, this system is similar to what is currently happening in North America, that is experiencing its coldest days ever, but with less intensity.“The air within a cut-off low pressure is colder than its surroundings due to its origination from the polar region, and it has sufficient moist air flowing into a low pressure system, and is highly likely to produce high amounts of rainfall and strong winds,” said Dirkse.

Windhoek was the coldest place on Tuesday with 5,5 degrees Celsius, which is two degrees lower than the 7,5 degrees the residents of the city experienced on 29 January 1961. On Monday, the temperature dropped at the Hosea Kutako International Airport to 0,5 degrees Celsius. The coldest ever temperature experienced at the airport in January was 9,1 degrees on 14 January 1995.

Another town that experienced its coldest January ever was Grootfontein, where the temperature dropped to 8,5 degrees Celsius yesterday. The coldest weather the town experienced in the month of January was 12,5 degrees Celsius on 15 January 1990. The temperature at the town of Ondangwa stood yesterday at 15,1 degrees Celsius, which is one degree colder than it experienced on 19 January 2011.

However, the cold system is expected to travel southwards from today on with temperatures expe-cted to start recovering, and by the weekend normal summer temperatu-res should be restored.

Old Swakopmund municipal building for sale

Since the completion of Council's new office block on Rakotoka Street the grand old municipal building in the centre of Swakopmund has struggled to define its place.

The sale of the old heritage building by way of closed bid auction is now on the cards again.

At its last meeting, Swakopmund Town Council approved a recommendation to set a minimum price of N$14.5 million for the sale of the property located at Erf 989.

In December 2013 the property was valued by Mr Abel Schoeman, an appraiser appointed by the High Court, in the following way: N$8 million for 2 147 m² of land; N$6 075 000 for the main building; and N$150 000 for other improvements, to arrive at a total value of N$14 225 000. The Trust Estate Co valued the property at around N$14.5 million.

In January 2010 the Trust & Estate Company had assessed the same property to be worth N$11 880 000, whereas Nasikama Property Valuation Consultants set the value at N$18.3 million. On 28 January 2010 Council set an upset price of N$15.1 million, but this was later repealed in June 2011 and a new minimum price of N$20.1 million was set.

The “new owner will have to invest considerable funds in order to renovate the building, which is deteriorating,” but, as the property is a listed building, any future alterations and renovations will have to comply with the Town Planning Scheme and would be subject to conditions and requirements set by the National Heritage Council.

The NHC prohibits the demolition of any building in the conservation areas, which is older than 50 years, without the written consent of Council.

The municipality will consider making alternative parking space available as there is limited on-site parking at Erf 989. A Council resolution taken on 28 November 2013 said that in the absence of on-site parking Council would in future adopt a policy whereby, for the Conservation Area, business enterprises can acquire and develop alternative parking at a cost and location determined by Council.

Parts of the old municipal building are currently occupied by the National Housing Enterprise, which will continue to lease the management committee room until November 2014 for a monthly rental of N$4 101. The Electoral Commission of Namibia will use Room 20 until 2 March 2014 as part of the ongoing voter registration campaign.

The background to the auction is that the Ministry of Safety and Security had first applied in 2011 to buy the property, but for unspecified reasons, the ministry cancelled their application in August. The property was then sold by closed bid to Luxury Investments 111 (Pty) Ltd for N$21.6 million, but the sale fell through and was cancelled in April 2012.

Full possession of Erf 989 will only be given on transfer of the Deed of Sale, Council said last week. If the latest move to sell by closed bid is not successful the municipal engineering department would continue to hold responsibility for the maintenance of the building.

Weak SA rand drags Namibian economy down

The South Africa rand, which has plummeted against the world’s major currencies, is dragging the Namibian economy down in its wake.
Economists across the border are already predicting that the rand will fall to R15 or even R20 to the US dollar, which has grave implications for Namibians who are already paying top dollar for basic foodstuffs and other commodities.
The petrol price increased by 38 cents at midnight last night, while the diesel price was hiked by 30 cents – putting motorists and commuters under further pressure. The knock-on effect on food prices is expected to follow swiftly.
On Monday, SA’s Automobile Association warned that if the rand’s depreciation continued unchecked, a petrol price of R16 per litre was possible in the medium term.
The rand was trading at R11.21 to the US dollar yesterday, compared to R10.35 on December 27, while the currency was trading at R15 to the Euro and R18 to the British Pound.
It has hit a five-year low against the US dollar, with analysts predicting price hikes in transport and construction during the first half of 2014.
There is widespread concern that the knock-on inflationary effect of the recent fuel price hikes would send further shockwaves through the economy.

Food price and mortgage hikes
Namibian Consumer Trust Executive Director Michael Gaweseb said yesterday: “When prices of goods are increased, people turn to their employers and demand more money. This further contributes to challenges between employer and employees, which further affects the economy undesirably when there are strikes.”
He said mortgage prices would also rise once the central bank translates the falling currency into higher interest rates to manage the economy.
FNB’s Manager for Research and Competitor Intelligence, Namene Kalili, said the depreciating rand is expected to increase the cost of construction materials in Namibia, including steel, roofing, flooring, aluminium and paint.
This will be “aggravated by the rising transport costs for bricks, sand and cement, which are very bulky inputs”.
It also raises the spectre of foreigners snapping up properties in both Namibia and SA.
Workers are also in danger of becoming trapped with lower wages, as their purchasing power continually diminishes and inflation rises.

Govt loan repayments
Currency weakness makes the cost of importing goods, particularly machinery and other technology used in production, exorbitant or unaffordable.
Sharp currency depreciation also causes the trade deficit to balloon, as the cost of oil imports and capital equipment climbs.
The costs of labour, electricity, transport and the like also rise sharply, driving up the cost of exports and driving down their competitiveness.
The Namibian dollar’s depreciation will also substantially increase the cost of government servicing foreign debt and increase the cost of borrowing from other countries.
Namibia’s monetary policy framework is underpinned by the exchange rate system linked to the SA rand. This link, which requires that Namibia’s currency be backed by international reserves, is supposed to ensure that the country imports price stability from the anchor country.

Investor confidence
Asked about the possibility of delinking the Namibia dollar from the SA rand, independent economist Klaus Schade said Namibia would not be able to exercise this option.
He said the benefits still outweigh the negatives.
“The country and economy has benefited from a more diversified South African economy that is less vulnerable to shocks in certain sectors, and hence (has) resulted in a greater degree of macroeconomic stability and investor confidence.”
He said that the tourism industry and exports can benefit from the currency devaluation.
Gaweseb said yesterday that it was imperative that consumers be consulted before prices are increased, especially when it comes to fuel and other commodities
“The country needs to look at socio-economic conditions in relation to its unique income disparity and how the sudden implementation of international economic impacts affects social-class harmony,” he added.

Namibia wins in malaria battle

Namibia is on target to reduce its incidences of malaria by 75% before the end of next year.
This is despite the 2013 World Malaria Report highlighting the need for increased funding for malaria control in Africa.
According to the report, a total of 59 countries out of 103 that had ongoing malaria transmissions in 2000, are meeting their Millennium Development Goal target of reversing incidences of malaria.
Of these, 52 countries - including Namibia - are on track to meet the Roll Back Malaria (RBM) and World Health Organisation (WHO) targets of reducing malaria by 75% in 2015.
According to the report, the financing of the anti-malaria programme was estimated to be less than half of the estimated N$56.8 billion required globally.
This has put a million people at risk of malaria infection, as many still do not have access to interventions such as insecticide-treated mosquito nets, indoor residual spraying, and diagnostic and artemisinin-based combination therapies.
“Since 2000, a tremendous expansion in financing and coverage of malaria control programmes has led to a wide-scale reduction in malaria incidences and mortality. There is an urgent need to increase funding for malaria control and to expand programme coverage, in order to meet international targets for reducing malaria cases and deaths,” the report said.
In terms of its world health ranking, Namibia stands at 31, which is a moderate category compared to neighbouring countries like Zambia and Angola that have many more cases of malaria per year.
Botswana and South Africa have lower incidences of the disease.
Currently Namibia’s fight to eliminate malaria is supported through the 2013 Global Fund donation of N$1.3 billion.
Namibia’s grant is also being used to offset the fight against HIV/Aids and tuberculosis.
Last year the head of the Global Fund’s Africa and Middle East Department, Lelio Marmora, said Namibia had shown progress, with malaria mortality declining from 1 700 deaths in 2001 to 36 deaths in 2011.
According to data collected by the health ministry between the period of January and March 2013, about 1 000 malaria cases were reported in the country, which is less than the 2 500 during the same period in
2012.
Of the 1 000 people treated, only 102 were reportedly severe cases.
Malaria in Namibia is mostly found in the Caprivi and Kavango regions, where the country receives high rainfall and where idle water creates favourable conditions for mosquito breeding.

DERTOUR travel agents explore Namibia

Windhoek - About 100 travel agents  of the Germany-based tourism tour operator, DERTOUR are currently in Namibia to experience first-hand the African flair and more especially the Namibian experience. The tour is made possible by the Namibia Tourism Board, Air Namibia, the Gondwana Collection, Safari Court Hotel and Sense of Africa.

Split into five groups, the DERTOUR staffers travelled through Namibia for several days on different routes.

They visited Kalahari Anib Lodge on the fringe of the Kalahari, followed by the Namib Desert Lodge at the foot of the fossilised dunes of the Namib, Damara Mopane Lodge near Khorixas in Damaraland and Etosha Safari Camp. There were also viewings at other lodges and they stopped at various sights.

The group was unanimous that Etosha was the highlight of their trip. “We watched a pride of five lions take a giraffe. Right in front of our eyes, at the parking site!” The visit was meant to allow the travel agents to share first-hand experiences with clients and thus sell the travel destination Namibia in a more authentic and enthusiastic way. According to the NTB, bookings to Namibia rose by some 30 percent after the two previous DERTOUR country specials in Namibia, which took place in 2006 and 2009. DERTOUR’s Director for Africa, Petra Fraatz, thanked the sponsors who made the visit possible saying,  “Namibia is definitely worth a visit.”

Namibia Wildlife Resorts’ modernisation program

Namibia Wildlife Resorts’ (NWR’s) ongoing drive towards market competitiveness continues, with the state-owned company this week announcing a number of projects scheduled for completion this year.
In a progress report issued this week, the company said it plans to see the completion of renovations currently underway at its Hobas Camp near the Fish River Canyon before the end of February.
The project forms part of the company’s three-year strategic plan approved last year, which aims to improve customer service, internal processes and systems, financial performance and public interest in the brand.
The Hobas project includes construction of a new restaurant, complete with sundowner bar and a capacity for 100 patrons.
It also includes the upgrading of the site’s existing camping facilities, development of five new group sites, and upgrades to the area’s swimming pool and surrounding landscape.
“The first phase of the redevelopment has started with revamping and commissioning of existing sewage trickling plant and installation of a new generator,” the company states in its latest progress report.
“Renovation works as performed by (the) internal project team has progressed very well and is being completed by mid-February 2014,” the report reads.
These works include the revamping of the site’s ablution block, its office block, as well as to the kiosk and staff housing quarters.
The company further gave an update on work currently under way at its Hardap Recreational Resort near Mariental. “Construction works started with the demolition of unwanted infrastructure in the first week of January 2014,” the company states in a separate progress report.
The Hardap Resort has been earmarked for major renovations, with the company calling for a modernised look and feel to its tourism facilities, office blocks and conference hall.
“The Hardap Resort renovation project is one of the projects which has been carefully planned to have started with a technical structural survey to determine which of the buildings are still sound and which are to be replaced or demolished. The technical infrastructure reports indicate that the bricks and concrete works are to a large extent still intact,” the company’s report on Hardap reads.
That project, it said, is scheduled to be commissioned towards the end of 2014.