Headspring Investments Interview to Future media

1. Has Uranium One considered the pollution risk of the exploration and mining in the Leonardville area and if so, what mitigating actions have been established and how effective these proven to be during the current exploration process?

For Uranium One the safety of the water, the environment and the people are paramount when considering its operations. When doing exploration, it is not possible to cause any pollution just by doing core drilling.  Uranium One ensured that all drilling was done in a technically correct manner and as stipulated by the Ministry of Agriculture, Water and Land Reform in 2012 already. All exploration boreholes were sealed off in accordance with agreed standards.  The uranium is not lying loose like coffee ground at the bottom of a kettle, but is in the sandstone in molecular form.  With core drilling only a core of the rock is taken out and those core samples are used to determine the prevalence of uranium.

We have had many ministries visit our exploration site, like the interministerial technical group, parliament standing committees on Economic Development and Natural Resources and so far we had no complaints.

One should understand that where you find uranium in sandstone, you will have natural contamination already due to the uranium decay.

2. As far as employment and community development is concerned, what has Uranium One put in place for the development of the community economy and what levels of commercial investments have already been made to this project in the area?

To date Uranium One has already invested N$900 mil in the project. This includes all operational costs as well as CSR spending. Although our operations have been standing still for two years, we have continued with our CSR efforts and initiatives to help uplift the community. Regarding the development of the community’s economy – when drilling was taking place, there was a notable upswing in economic activity in Leonardville.  In order to prepare local development, Uranium One has made 15 post-graduate and 8 under- graduate bursaries available to Namibian students.  We are looking at other avenues to create educational opportunities and employment for residents of Leonardville and we hope to say more about this soon.

But, we are confident that we will receive the greenlight to go ahead soon.

3. How many jobs have been created to date for the community members and how much are still in the pipeline should the licence to proceed be granted?

When drilling was taking place, about 150 Namibians had work.  For now, the company is creating employment for 16 people.  Should the mine start we are looking at employment for between 600-800 people.  These will obviously be well compensated jobs.

When we talk about continuing of exploration drilling, it will be back up to 150 people.

But, through our CSR initiatives like the construction of a kitchen for the primary school at Leonardville, we have created more income for the local community.

4. What are the steps you plan to undertake to show that the alleged pollution of the ground water would not be caused by the mining or exploration of the uranium?

It is imperative that we be allowed to continue with pilot testing, in order to prove the feasibility of uranium extraction. Through the pilot plant, which by the way is only 15 x 15 meters in size, we will strive for the following:

A closed loop can be created, and it will be possible to dissolve the uranium and extract it, without any contamination taking place. Once the data informs us that all of the requirements are met, only then can one apply for a mining licence.

Those who are worried about contamination clearly show a lack of understanding of ISR; the mining methodology is working like a giant water purification system. We take out the harmful uranium and leave the water in a better condition than it was before the mining started.  We have over 60 years of experience in this mining methodology and we have proven software for modelling and controlling of the process and this experience and technology will be used in Namibia to mitigate the possible risks.

5. As far as the country’s economic benefit is concerned, with Namibia being the largest producer of Uranium in Africa, what effect would the delay in the granting of the licence have for the country and the community?

The first obvious loss for the country will be a loss of income tax.  Secondly it will be a loss of income and economic growth for the area – even for the whole of the Omaheke Region. This economic inflow will definitely spill over wider than the Omaheke Region only. It is common knowledge that, according to the multiplier effect, there are 7 more employment opportunities created for every one job that is created by the mine.  Furthermore, a market for the farmers will be created on their doorstep. Not only will the mine provide three meals per day for its 600 employees, but the secondary employment will also need to be sustained. That is a total of at least 4 800 mouths to be fed  - creating unprecedented opportunities for local farmers. Not only that, but a mine will lead to access to better education, better health care, better safety and security, improved infrastructure and increased economic activity and economic growth.

6. What do you plan for the short term and long-term protection of the underground water which so many people depend on which may or may not be contaminated by the exploration and mining process?

When one understands the behaviour of the underground water in the aquifer, it is clear that contamination will not take place. Even though there are those who talk about broken casings, and other baseless fears, we are confident that through our more than 60 years of experience in ISR, that the uranium, that has already naturally contaminated the water in the Uaob 3 aquifer, can be extracted, thereby leaving better quality water behind after the uranium has been extracted. There are many, many layers of security and mitigation built into the mining methodology. If this methodology was not safe, why is about 60% of uranium production today done through the ISR method? Why did the IAEA acknowledge that ISR is the safest way of uranium production?