Mining sector thirsty for water infrastructure
The Chamber of Mines of Namibia says public water utility NamWater will have to invest in water infrastructure to support projects planned in the mining sector.
The chamber's CEO Veston Malango said investment in infrastructure to feed Namibia’s water-hungry uranium mines and those planned for future would increase investor appetite in the sector.
According to him, bankable feasibility studies had been completed for Bannerman’s Etango project and Deep Yellow’s Tumas uranium projects, which are raring to go - should uranium prices improve in the near future.
The absence of water infrastructure risked these projects and other future projects, Malango said.
“We need more investments into security of supply of water, because if the uranium process can go next month to beyond US$100 per pound, we’ll still fail to raise capital for these projects because then it becomes a risk, so that is a discussion that is going on,” he said.
The mining sector is reliant on government - through NamWater - to invest in water infrastructure, as new water supply envisaged to be created by the development of the green hydrogen sector would only be available for that purpose, Malango explained.
“For us, what will be available for mining is for NamWater to invest in desalination or whatever they do. They need to invest because for us, we still continue getting water from NamWater,” he said.
Contentious bill
The CEO also weighed in on the New Equitable Economic Empowerment Bill, saying the chamber removed any risk associated with the contentious equity bill.
The bill had initially proposed a 25% equity stake for previously disadvantaged communities, but that pillar has since been done away with.
“What we have done at the chamber, we have de-risked that. I have advocated for flexibility, for government to adopt flexibility when it comes to that, which is what was adopted,” he said.
“There is no talk of 25%. Now you determine as a sector what is doable for you, and this is how we determined the minimum, which is 5%. Maximum can be anything, but the minimum is 5%,” Malango added.
The chamber is continually engaging government to find a workable solution around the equity bill, he added.
“We have done everything, and we are waiting for that policy to be concluded. Obviously, the main issue from the private sector is that there is a couple of things they have raised and that is what we are waiting [on] government [for].
“We are told it is with the Office of the Prime Minister,” he said.
The chamber's CEO Veston Malango said investment in infrastructure to feed Namibia’s water-hungry uranium mines and those planned for future would increase investor appetite in the sector.
According to him, bankable feasibility studies had been completed for Bannerman’s Etango project and Deep Yellow’s Tumas uranium projects, which are raring to go - should uranium prices improve in the near future.
The absence of water infrastructure risked these projects and other future projects, Malango said.
“We need more investments into security of supply of water, because if the uranium process can go next month to beyond US$100 per pound, we’ll still fail to raise capital for these projects because then it becomes a risk, so that is a discussion that is going on,” he said.
The mining sector is reliant on government - through NamWater - to invest in water infrastructure, as new water supply envisaged to be created by the development of the green hydrogen sector would only be available for that purpose, Malango explained.
“For us, what will be available for mining is for NamWater to invest in desalination or whatever they do. They need to invest because for us, we still continue getting water from NamWater,” he said.
Contentious bill
The CEO also weighed in on the New Equitable Economic Empowerment Bill, saying the chamber removed any risk associated with the contentious equity bill.
The bill had initially proposed a 25% equity stake for previously disadvantaged communities, but that pillar has since been done away with.
“What we have done at the chamber, we have de-risked that. I have advocated for flexibility, for government to adopt flexibility when it comes to that, which is what was adopted,” he said.
“There is no talk of 25%. Now you determine as a sector what is doable for you, and this is how we determined the minimum, which is 5%. Maximum can be anything, but the minimum is 5%,” Malango added.
The chamber is continually engaging government to find a workable solution around the equity bill, he added.
“We have done everything, and we are waiting for that policy to be concluded. Obviously, the main issue from the private sector is that there is a couple of things they have raised and that is what we are waiting [on] government [for].
“We are told it is with the Office of the Prime Minister,” he said.
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