Country Report Namibia May 2011

Economic performance: Uranium production falls

A combination of lower ore grade and reduced extraction rates at the Rössing mine and abnormally high rainfall at the Langer Heinrich mine cut Namibia's uranium output to 923 tonnes in January-March 2011, 29% down on a year earlier. Rio Tinto, which owns a 69% equity interest in Rössing, has lowered its 2011 production forecast and expects production of some 3,100 tonnes this year, compared with 3,600 tonnes in 2010. Rainfall was ten times the annual average in the normally arid central Namib area in the first quarter of 2011, which lowered the average grade at Langer Heinrich. However, commissioning of the Stage 3 expansion project at Langer Heinrich, which will raise output by 40% to 2,360 tonnes by the second half of 2011, has begun. This should partly offset lower production at Rössing.

Uranium output, Jan-Mar
(tonnes U3O8)
 20102011% change
Rössing884562-36.4
Langer Heinrich421361-14.3
Total1,305923-29.3
Sources: Rio Tinto, First quarter 2011 operations review; Paladin Energy, Quarterly activities report for period ending March 31st 2011.

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