Wednesday , April 24 2024

Uranium future growth engine for the economy

Business Monitor International (BMI) researchers have said uranium mining will be the main engine of growth in the coming quarters.

The analyst’s latest Africa Monitor Report indicates that Namibia’s mining sector is seeing robust growth, posting 25.8 percent year-on-year growth in the second quarter of the year, led mainly by increases in uranium and diamond production.

“We are expecting that the Chinese-owned, Husab uranium mine will reach full production in the coming quarters, which will see a doubling of uranium production year-on-year and make Namibia the world’s third largest uranium producer,” BMI said.

According to the research firm, as mining output increases, it will mitigate some of the impact from other sectors that are in decline.

Meanwhile, BMI also believes that diamond mining will continue to see robust output, as offshore diamond mining is boosting production by complementing more longstanding onshore mines.

“This has already had an effect, manifested in a three-year high in diamond production in Q1 17.”

BMI expects that the ongoing increase in mining output in the next year will be the chief motor behind a recovery in headline growth in 2018.

The Africa Monitor Report includes insight and expert analysis on political, economic and business developments in Africa.

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