Namibia+Strategic+Minerals

= Recent USD 2.1 Billion Chinese Uranium Investment likely to Attract Further Investment =

Executive Summary:
It is likely that the Chinese will continue to invest in Namibia strategic minerals in the next five years, specifically in uranium, copper, and iron ore. The Guangdong Nuclear Power Company (CGNPC) and Epangelo Mining company recently acquired the Husab Uranium Mine owned by Swakop Uranium for USD 2.1 billion. This site will undergo further construction for USD 130 million and is expected to be operational in late 2015.China based Northonhe Holdings Co. bought a 49 percent stake in a copper mine for USD 50 million. The Chinese company will then be granted rights to use the mine for 25 years. Recent discoveries of iron ore will allow Namibia to start mining by 2016 with funding from Jiangsu Eastern China Non-ferrous Metal Investment Holding Co. Ltd. This deposit is estimated to be worth billions of dollars.

Discussion:
Chinese investments in Namibia have primarily been in strategic minerals, specifically uranium, copper, and iron ore. The Husab Uranium Mine project is expected to begin production in 2015 and estimated to hold 280 million tons of uranium ore that will take almost 20 years to mine. This is by far the largest Chinese investment in Namibia, which is likely to bring other infrastructure projects to help maintain good relations. With recent discoveries of iron ore in the Opuwo area in Kunene, Namibia is expected to being mining by 2016. This discovery of iron ore is estimated to be worth billions of dollars and could become Namibia's biggest mining asset. Ming Li, who is general manager of Namibia East China Non-ferrous Investments states that the mine could produce over 2 billion tons of iron ore and that over the next four years USD 300 million would be invested into further exploration.



Analytic Confidence:
Analytic confidence for this assessment is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise, worked alone, and did not use structured analytic methods. The subject is moderately complex and the deadline was easy to meet.

Analyst:
Sean Dailey sdaile35@lakers.mercyhurst.edu