China-Owned Uranium Mine in Namibia May Supply Offtake to Cameco

China General Nuclear Power Holding Corp. said Cameco Corp. (CCO) has shown interest in buying offtake output from the Chinese company’s Husab uranium mine in Namibia.

Offtake shipments from the mine will start next year, Deon Garbers, senior vice president for operations at CGN’s Namibian unit, said yesterday in an interview in Swakopmund. Cameco, based in Saskatoon, is Canada’s biggest uranium producer.

“Cameco is definitely a potential customer,” said Garbers. “Depending on how much they will take, we might also sell to other customers.”

The $2 billion Husab project, which has the potential to produce 15 million pounds of uranium and becomes fully operational in 2017, will eventually supply China only, said Garbers. The mine is eight kilometers south of Rio Tinto Group’s Z20 deposit in the Namib-Naukluft national park, and CGN will seek to cooperate with its neighbor, said Garbers.

“We do not have harbor facilities at the moment and there is potential in us importing sulphuric acid using their facilities,” he said.

Husab will make Namibia the third-largest uranium producer by 2017, according to Zheng Keping, chief executive officer of CGN’s Namibian unit.

To contact the reporter on this story: Felix Njini in Namibia at fnjini@bloomberg.net

To contact the editors responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net Dylan Griffiths, Hilton Shone

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