Rössing Uranium Mine continues to carve out a significant niche in the global energy landscape, contributing approximately 4% of the world’s primary uranium production in 2024, the company’s 2024 Sustainability and Performance Report reveals.
This contribution, translating to 5.7 million pounds of U3O8 mined and 5.5 million pounds sold, underscores Rössing’s pivotal role in an international market increasingly reliant on nuclear power for decarbonization and energy security.
The mine’s journey through a year of pronounced price volatility reinforces Namibia’s position as the third-largest primary producer of U3O8, trailing only Kazakhstan and Canada.
Rössing’s sales footprint in 2024 vividly illustrates its international reach and the complex dynamics of the uranium trade. The company strategically navigated shifting market conditions, selling approximately 2.6 million pounds to Western converters. Within this segment, 1.1 million pounds found buyers across North America, Asia (excluding China), Europe, the Middle East, and Africa (EMEA), supporting utility operations in these key regions. Simultaneously, the early-year surge in spot prices – which briefly reached a near 20-year high of US$107 per pound – attracted significant activity from non-utility players. Rössing capitalised on this spike, selling an additional 1.5 million pounds to traders and investment funds before prices embarked on a continuous decline. However, the most substantial single market for Rössing was China, which received 2.9 million pounds, reflecting the strategic alignment fostered since China National Uranium Corporation (CNUC), a subsidiary of the state-owned China National Nuclear Corporation (CNNC), became the majority shareholder in 2019. While the CNNC sales arrangement provided early benefits during the strong spot market, the subsequent price downturn underscored the inherent risks of market fluctuations, prompting a strategic shift towards optimising the balance between long-term contracts and spot sales to better manage future volatility.
Financially, 2024 was a year of resilience and strategic investment for Rössing Uranium despite facing headwinds. Revenue experienced a 9% decline to N$5.93 billion, primarily attributed to the volatile uranium price environment. Prices, after their early peak, gradually declined and stabilised in the US$70-US$75 per pound range by year-end, influenced by financial market volatility, inventory adjustments, and shifting supply-demand dynamics. Despite this revenue dip, the company achieved a net profit after tax from normal operations of N$1.03 billion. While this fell short of the N\$1.34 billion recorded in 2023, it represented a robust performance considering the planned significant increase in capital expenditure aimed at securing the mine’s future beyond 2026. This investment, totalling over N$1.1 billion in infrastructure and equipment, drove a 22% increase in total assets to N$10.1 billion. Equity also strengthened significantly to N$5.83 billion, underpinned by growth in retained earnings. Operational cash generation remained healthy at N$739 million, funding both day-to-day needs and strategic initiatives, although cash and cash equivalents decreased to N$2.23 billion. Prudent financial management ensured the company maintained a strong liquidity position throughout the year.
Operational achievements formed the bedrock of this financial resilience. A cornerstone of Rössing’s future strategy, the Life of Mine Extension (LoME), saw major progress with the successful implementation of Phase 4 pushbacks in the SJ Pit. This effort resulted in a remarkable 82% increase in total material mined compared to 2023, reaching 30.3 million tonnes, a testament to operational efficiency improvements. A critical operational shift was the smooth transition from owner mining to a contractor-mining model, successfully onboarding Beifang Mining Technology Services Namibia. This transition is pivotal for securing operations beyond 2026 while creating new pathways for skills development within Namibia. However, this increased mining volume did not translate directly into higher uranium oxide production, which decreased to 2,600 metric tonnes (approximately 5.73 million pounds U3O8) from 2,920 metric tonnes in 2023, reflecting planned variations in ore processing and grade. The company also remained a vital economic engine locally, spending N$5.23 billion on goods and services. Impressively, 84% of this procurement (N$4.37 billion) went to local Namibian suppliers, concentrated in the Erongo (48%) and Khomas (42%) regions, significantly boosting the regional economy and demonstrating a deep commitment to local enterprise development, including SMEs.
Beyond economics, Rössing intensified its focus on sustainability and social responsibility, recognising these as fundamental to maintaining its social licence to operate. Community development investment rose substantially to over N$61.6 million, up from N$41.1 million in 2023. Of this, N$38 million was allocated to the Rössing Foundation, with approximately N$23 million directed to other community initiatives. Environmental commitments took a significant leap forward with the commencement of construction on an 18 MWp/15 MW AC photovoltaic solar power plant in Q1 2024. Once operational, connected via a 6,800-meter overhead line, this plant will directly supply the processing plant, marking a major step towards greener energy use. Progress on environmental management also continued with the thickened tailings LoME project, culminating in the commissioning of a horizontal belt filter pilot plant in late 2024 to refine tailings management strategies. However, the year was marred by safety setbacks. A tragic fatality at the solar construction project ended a 19-year fatality-free period, and the All-Injury Frequency Rate (AIFR) of 0.65 missed the target of 0.46, alongside three permanent disabling injuries and two potentially fatal incidents. These events triggered a renewed emphasis on safety culture, including expanded operator fatigue monitoring and enhanced pit safety measures. The workforce stood at 871 at year-end, with 98.7% being Namibian citizens, reinforcing the company’s role as a major national employer.
Looking ahead, Rössing navigates a uranium market characterised by strong long-term fundamentals but persistent near-term volatility. Global momentum towards nuclear energy as a low-carbon baseload power source remains robust, with projections indicating growth from 436 operable reactors (396 GWe) in early 2025 to 540 units (515 GWe) by 2035, led predominantly by Asia. This underpins sustained uranium demand. However, supply constraints are evident. Years of under-investment, the depletion of secondary sources, geopolitical disruptions (exemplified by production suspensions in Kazakhstan’s Inkai and ongoing issues in Niger), policy uncertainties like the US ban on Russian uranium imports, and slower-than-expected production ramp-ups collectively point towards sustained market tightness and potential supply constrictions extending into 2025. While total spot market volumes declined by 17% to 46.8 million pounds U3O8 in 2024 due to reduced large-scale transactions and utility purchasing, long-term contract prices showed resilience, rising to US$79 per pound – the highest level since 2012 – even as total contracted volume fell significantly from 160 million pounds in 2023 to 116 million pounds, indicating utility caution.