July 26 (Bloomberg) -- Areva SA, the world’s largest producer of nuclear reactors, expects to sign an offtake agreement to supply Namibia Water corp. with as much as 10 million cubic meters (2.64 billion gallons) of treated water annually from its desalination plant in the country.
The water from the plant in the Erongo region has become available as the desalination plant is twinned with the planned Trekkopje uranium mine, which Areva halted last year after uranium prices slumped. The Paris-based company has spent $970 million on the mine and $250 million in investment is needed to complete the project.
“We are currently in the final stages of our negotiations with Namwater,” said Hilifa Mbako, the managing director of Areva Resource Namibia, said yesterday in a response to e-mailed questions. “We expect a ramp up to 10 million cubic meters over five years.”
The water will be used by Namwater in the coastal towns of Swakopmund and Walvis Bay, both of which lie in the Namib Desert, and to supply uranium mines in the region, Mbako said. Prices have been agreed he said, declining to be more specific.
The desalination plant has a design capacity of 20 million cubic meters a year. Erongo region has annual demand for 13 million cubic meters of water.
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