Chamber of Mines of Namibia

Chamber of Mines Newsof MinesNewsletterA quarterly newsletter for the Namibian mining industry • Issue 01/2013 April 2013Growing the Cakefor Socio-EconomicProsperity2013 Mining Expo & Conference set for 22 and 23 MayIssue 01/20131

Chamber of Mines News/3374Over the land and over the sea, the stars shalllead the way to success and prosperity.2Issue 01/2013

Chamber of Mines NewsMiners carrying out excavation work as part of the development of the new Tschudi mineWeatherly keento develop TschudiCOPPER miner Weatherly Internationalsaid recently that it would placeits focus on the Tschudi development,which would transform the company from ahigh cost underground miner to a mid-tieropen pit producer.NOSA Namibia:For safe, healthy, greenand risk-free workplacesSWAKOPMUNDGround Floor, Swakopmund Medical CentreCottage Avenue, SwakopmundEmail: loraine@nosanamibia.comTel: +264 64 462 790Cell: +264 81 777 91256 Issue 01/2013www.nosa.co.zaTschudi will add 17,000 tonnes of coppera year to Weatherly’s output. The group hasalready completed a bankable feasibility studyand said financing and legal due diligencehave neared completion.Half-year production to December from its10%Easter Discounton AprilcoursesSWAKOPMUNDCOURSE NAME DAYS DATE (2013)Office Health & Safety 1 05 AprilNOSA Incident Investigation Level 3 3 22-24 AprilHazard Identification & Risk Assessment (HIRA) 2 25-26 AprilWINDHOEKCOURSE NAME DAYS DATE (2013)SHE Representative 1 29 AprilOffice Health & Safety 1 30 AprilSHE Representative Functions 3 17-19 JuneHazard Identification & Risk Assessment 2 20-21 JuneNOSA Auditor 5 24-28 JuneNEBOSH International General Certificate 11 15-29 JuneWINDHOEKRoom 1A, Ground Floor, Yang Tze VillageCnr Sam Nujoma & Nelson Mandela, Klein WindhoekEmail: loraine@nosanamibia.comTel: +264 61 255 414Cell: +264 81 777 9125two existing mines in Namibia stood at 2,798tonnes of contained copper, similar to theprevious first half, but delayed sales and lowercopper prices hit profits.Weatherly said it sold 418 tonnes less copperin the latest half-year because of the timingof shipments. The average price at whichit could sell copper was also US$330 lower inthe current period.Revenues fell to US$18.9 million (fromUS$23.1 million in the previous reporting period,while profits were US$2.7 million (fromUS$13.3 million), of which US$2.2m camefrom settlement of an insurance claim for theKombat mine flooding in 2007.Weatherly delivered 2,608 tonnes ofcontained copper to port. Average cash costswere US$5,730 a tonne (US$2.60 a pound) ofcopper produced.“We continue to look at ways to improveproductivity and reduce costs at our twounderground mines as they generate therevenues that will underpin the company’sdevelopment until Tschudi reaches production,”the company said. As of the end ofFebruary, the company had US$6.9 millioncash or equivalent.

Chamber of Mines NewsWeir Minerals…Expertise where it counts.ExcellentMineralsSolutionsWeir Minerals is the world leader in thedesign and manufacture of pumps, valves,hydrocyclones and wear resistant linings,including WARMAN® centrifugal slurrypumps, ENVIROTECH® dewatering pumpsand LINATEX® rubber products for the globalmining and minerals processing industries.Our reputation is based on engineeringexcellence applied to innovative, customerfocused solutions for processing mineralsand aggressive materials.In line with our customer driven focus, WeirMinerals Africa also offers a pump rentalconcept as an attractive alternative to anoutright purchase.For more information contact us on+27 (0)11 9292600www.weirminerals.comCopyright © 2013, Weir Minerals Africa. All rights reserved. WARMAN is a registered trademark ofWeir Minerals Australia Ltd and Weir Group African IP Ltd;Issue 01/20137

Chamber of Mines NewsArandis seesbright future aheadLIKE Las Vegas, the mining town ofArandis plans to shake off its dustypast and become a shining gem in themiddle of the desert.Formerly a dormitory town for the nearbyRössing mine, Arandis is gearing up to attractsignificant investment for multi-million dollardevelopments.Entering Arandis from the highway, thesigns of activity are obvious with buildings goingup on both sides of the main road.Always an industrious town, serving thenearby uranium mines, recently Arandis hastruly spread its wings. “Arandis is known forits close relation with the mining industry, buthas much more to offer,” says Town CouncilChief Executive Officer Florida Husselmann.“We see great potential in growing thetown into an industrial hub that can servethe Erongo Region and it is centrally locatedbetween major industry, the ports and thehinterland.“With the Namibia Institute of Mining andTechnology (NIMT) having its main campushere the town is also a centre of excellence forthe furthering of education.“Our desert landscape and the proximity ofseveral large mines, also open doors for nichetourism,such as mining tours, eco-tourism,or desert adventure safaris,” she says.Similarly, long-time NIMT DirectorEckhart Mueller, who is passionate about thetown’s development, sees a bright future forthe area.“Arandis is situated outside the rust belt,in the heartland of the industrial region andsports an excellent skills base,” he says.NIMT, with 3,000 students is by far thelargest supplier of skilled labour in theErongo region and throughout the country.Some of the developments currently underwayinclude a three-storey hotel, a healthcentre and a shopping mall that Old Mutualwill develop. Earlier, the town saw the openingof retail facilities, a large petrol station,schools and banking outlets.Offering an alternative to the expensivecoastal property markets, residential developershave flocked to the town to build houses.Among them, young Namibian entrepreneurTuna Willem who is building 120 low tomiddle income houses in the town. “Arandisis a no-brainer in terms of investment,” shecomments.8Issue 01/2013

“The town has everything going for it, focusingon necessities that are in high demandin Namibia, such as a safe, affordable livingenvironment. The Town Council is passionateand a dream to work with for developers.”Residential development is one of the pillarsin Arandis’ development strategy, notesHusselmann, who foresees a doubling of thetown’s population over the next few years.“We have land in abundance and are ableto develop it much cheaper than in other partsof the country, offering an affordable andprosperous living environment.”Apart from Tuna Willem’s Osho LivingPark, developers have another 600 housesin their sights, as well as a power plant, a dryfishing plant, a mining museum, various accommodationfacilities and an industrial park.Several high-powered individuals such asDeputy Trade Minister Tjekero Tweya andErongo Governor Cleophas Mutjavikua havestaked their reputations on Arandis, attractinginvestment and calling it an ‘excellentopportunity for industrialisation’ as set out inNDP4 and Vision 2030.Chamber of Mines News“Exciting new areas we are looking todevelop are renewable energy and a polishingfactory for the minerals that are foundnearby,” Arandis Corporate Services ManagerAunie Gebhard explains.“With so many hours of sun and an abundanceof minerals these are logical areas fordevelopment, showing that Arandis wantsto add value locally and, in doing so, createjobs.”“An Investment Conference in 2011put Arandis on the map as an investmentdestination of choice, resulting in severaldevelopment large projects.”The outcomes of the conference have beenso positive that the Town Council has decidedto organise a follow-up conference on 25-27April to secure further financing for variousprojects.A Mineral, Mining and Energy Expo, whereexhibitors will display the latest products andservices in the field will enrich the conferencehosted by NIMT.“The Conference and Expo will promoteArandis as a centre of business growth and anWe have land inabundance and areable to develop it muchcheaper than in otherparts of the country,offering an affordableand prosperous livingenvironment.”excellent base for large and small companiesactive in the mining and energy sectors,”Arandis Mayor Daniel Muhura said.“Both events will focus specifically onmanufacturing services and establishing asupply industry for the mining sector, as wellas establishing Arandis as the hub of educationalexcellence for vocational and scienceeducation.”Issue 01/20139

Chamber of Mines NewsDundee’s plans forcleaner smelter progressTHE volumes of concentrate smeltedat Namibia Customs Smelter in thefourth quarter of 2012 reached 45,823tonnes, Dundee Precious Metals, which ownsthe smelter, said in a report.Concentrate smelted in 2012 of 159,356tonnes was 12 percent lower than the correspondingperiod in 2011 due primarily tothe impact of the Minister of Environmentand Tourism’s directives to limit productionto 50 percent and 75 percent of the smelter’soperating capacity during the second quarterof 2012 and the balance of 2012, respectively.The company completed the new gas cleaningsystems in January 2013 and expects tocomplete tie-ins and commissioning soon.Thereafter, it will perform testing to ensurethat the modifications produce the planneddecrease in emissions before the Ministry ofEnvironment grants approval to lift the existingcurtailment, the report said.Dundee said Namibia Customs Smelter hascontinued to make progress on its programmeto improve emissions controls, environmentalperformance and operational efficiency. Keyprojects include:• Construction of a landfill facility for thesafe disposal of baghouse dust and otherwaste from the smelting process;• Projects to reduce dust emissions from thereverberatory and convertor furnace section,which include increasing baghouse capacity,upgrading the taphole fume extractionsystems, and improving ducting and fugitivefume collection;• Projects to reduce emissions from the topsubmerged lance (Ausmelt) smelting furnace,which include installing new baghouse dustcollection equipment including dust-removal,installing new ducting and other gas handlingequipment; and• Construction of a new dust transfersystem, upgraded roasting and fume managementfacilities, enclosed storage area,bag-filling station and extraction system atthe arsenic plant, all aimed at reducing thedispersal of dust.The supplier shipped a used oxygen plantDundee purchased in the first quarter of 2011from North America to Namibia in November2011 and the company expected it to arrive onsite in the first quarter of 2012.It is currently expected that this secondoxygen plant will be commissioned soon willincrease the smelting capacity of the Ausmeltfurnace to 240,000 tonnes per year from itscurrent capacity ranging from 170,000 to200,000 tonnes per year depending on thetypes of concentrates smelted.Total capital expenditures for the year 2012at the smelter are projected to be approximatelyUS$60 million for environmental andplant optimisations projects.10Issue 01/2013

Chamber of Mines News12Issue 01/2013

Chamber of Mines NewsIssue 01/201313

Chamber of Mines NewsDebmarine mining vessel, MV Mafuta.Debmarine addsMV Mafuta to its fleetChamwe KairaIT HAS been 10 years since, the then DeBeers Marine Namibia, now known asDebmarine Namibia relocated to Namibiafrom Cape Town, South Africa.The company has now grown to become thecash cow of the Namibian diamond industrywith a turnover of N$4 billion in 2012 andpaid taxes and royalties worth N$1.3 billionin 2012.In addition, it also paid a dividend ofN$538 million to its shareholders, the Namibiangovernment and the De Beers Group.Production reached 1.1 carats in 2012.On Monday 8 April 2013, PresidentHifikepunye Pohamba, commissioned, Debmarine’snewest vessel, called the MV Mafutaas the latest addition to its fleet.The other four vessels are the MV DebmarAtlantic, MV Debmar Pacific, MV !Gariep andthe MV Grand Banks.Managing director, Otto Shikongo said theMafuta cost N$650 million and the companyexpects it to produce 350,000 carats a year or30 percent of annual production.In May 2011, the Government and DeBeers signed a collection of agreements forthe establishment of a new shareholdingstructure in Namibia.Under the new structure, the Governmentincreased its shareholding from 15 percent to50 percent.The Mafuta, originally a heavy-lift dockship and thereafter a cable laying vessel wasconverted to a marine mining vessel and fittedwith a fourth generation crawler-mountedtechnology. Mafuta will become the largestmining vessel in the Debmarine fleet.“We believe we are unrivalled in ourcontribution to the Namibian treasury in thatrespect,” Shikongo said.Minister of Mines and Energy, Isak Katali,said Debmarine had continued to lead theworld in marine mining technology and hopedthat Debmarine Namibia could grow furtherto enhance its position as a true global leader.The company purchased the Mafuta fromDe Beers Consolidated Mines in November2012.Following its acquisition, the companyrechristened the vessel to the MV Mafuta– which means seas or great waters in theOshiwambo language of Namibia.Previously the vessel was known as the“Peace in Africa”. It is about 170 meters inlength, has a depth of 15 meters, breadth of24 meters, and weighs approximately 16,000tonnes.The vessel employs crawler-mountedtechnology. The ship has its registration at theport of Lüderitz. Approximately 57 crew workon the vessel.18Issue 01/2013

Chamber of Mines AnnouncementNewsNew Management structureThe new management structure of AREVANamibia in the Care and Maintenanceperiod for Trekkopje Mine as from June2013 has been announced.CEO of Debmarine Namibia, Otto Shikongo (right), PresidentHifikepunye Pohamba (centre) and Founding President,Sam Nujoma toast during the commissioning ceremonyof the Debmarine mining vessel, MV Mafuta.Biography:As General Manager for Namibia, Mr Mbakoreplaces Mr Alain L’Hour, and will be the custodianof all the company’s interests in the country. He willbe based in Swakopmund. Mr Mbako was born inWindhoek on 14 October 1964. He was educatedin England since 1983 where he read Business,Finance, Politics, Philosophy, Economics andJournalism. He worked in the UK and Mexico fora year before returning to Namibia in 1989. Heholds a BA Communications, Economics andPhilosophy degree (Bradford University) anda National Diploma in Business and Finance(London College of Communications). Hilifa hasmore than 24 years’ managerial experience in theindustry. He joined AREVA Resources Namibia(Pty) Ltd as Country Manager in December 2009and Board Director of AREVA Processing Namibia(Pty) Ltd in November 2011. In his new role he willbe the Chairperson of AREVA Processing Namibiaand the Erongo Desalination Company (Pty) Ltd.Hilifa MbakoGeneral ManagerSandra Müller Manager: QHSEAngelique de Klerk Manager: HRDe Beers Group Chief Executive Officer Philippe Mellier andDebmarine Namibia Chief Executive Officer Otto Shikongowelcoming President Hifikepunye Pohamba to the ceremonyto commission the MV Mafuta.Tommie Gouws Manager: FinanceFrancois van Dyk Superintendent: C&MPhilippe Dubois Manager: Test WorkTertius Truter Engineer: C&MFounding President Sam Nujoma receives a gift from DebmarineNamibia Chief Executive Officer Otto Shikongo (left).Looking on is Diamond Commissioner Kennedy Hamutenya.AREVA RESOURCES NAMIBIAAddress: AREVA Plaza, Cnr Nataniel Maxuilili &Leutwein Street, Swakopmund, NamibiaTel: +264 (0)64 415 720 - Fax: +264 (0)64 415 721www.areva.comIssue 01/201319

Chamber of Mines News201MINING& CONFERENCE22 & 23 May 2013Safari Hotel & Conference CentreWindhoek, NamibiaFor more information, please contact Belinda Beukes:Tel: +264 61 299 1303 | e-mail: miningexpo@cih.com.na20Issue 01/2013& CONFERENCEwww.chamberofmines.org.naPROUDLY SPONSORED BY THE CHAMBER OF MINES OF NAMIBIA