The construction of the mine, which is 10% owned by Namibian state mining company Epangelo Mining, is estimated to cost $129m.
The company is planning to complete the construction in 2014, besides expecting the first batch of production of ore in 2015. Full production is expected by 2017.
Commenting on the occasion, Namibia Minister of Mines and Energy Isaak Katali told AllAfrica.com that the partnership between the government and mining company would benefit local companies from the mining operations along with government.
The government is committed to the sustainable utilization of the country’s natural resources to benefit Namibians and is encouraging win-win partnerships between Namibians and foreign investors, Katali added.
Chinese Charge d’affaires Li Yigang said that Swakop Uranium attaches great importance to its goal of localization in Namibia and is committed to create a fair and competitive bidding environment for technically capable vendors from both Namibia and abroad.
The mine is said to have 142,000 tons of uranium resources in-situ with an average grade of about 0.04% with the mine life of 20 years. Its annual production capacity is claimed to be 5,560 tons of uranium.
