Rössing Uranium Limited has confirmed that as part of operational changes, approximately 138 employees have opted for the offered separation package.
Rössing Uranium Limited’s Managing Director Johan Coetzee says the total expense of separation packages is around N$90 million, which includes tax clearances and other related costs for those who have completed the process.
“So far, approximately 138 employees have left under this package. The total expense of separation packages is around $90 million. This figure includes tax clearances and other related costs,” Coetzee told M&E on the sidelines of the company’s sustainability report launch recently.
This comes as Rössing Uranium last year awarded a N$12.8 billion mining contract to Chinese contractor Beifang Mining Services to take over responsibility for the operations.
The mining contract agreement―spanning 13 years―will allow the company to secure the necessary resources and expertise to sustain and enhance Rössing Uranium’s mining operations.
As a consequence, the sub-contracting of mining operations will, however, see the uranium miner retrenching around 400 employees.
“This comes with a downfall as the company is set to let go all mining personnel, as a result, Rössing Uranium Limited has introduced a comprehensive workforce transition plan, offering attractive separation packages and employment support to its around 400 mining personnel,” Coetzee says.
According to Coetzee, employees were offered “a very lucrative separation package” with a three-and-a-half-year timeframe to find alternative jobs.
Coetzee said the decision was driven by the financial constraints faced by the company in funding a N$1.4 billion fleet upgrade investment required to continue operations.
The fleet upgrade would be required after the mining operations reached a 410-metre-deep pit with an additional optional 600-metre-deep pit being the deepest the company could go due to its aging fleet.
The partnership with Beifang Namibia will allow Rössing Uranium to commence Phase 4 of operations, which will be fully operational in 2027, with operations carried out by Beifang.
In May, Rössing Uranium announced a life-of-mine extension for Namibia’s longest-running uranium mine by ten years, from 2026 to 2036, following the completion of their bankable feasibility study.
The mine has been in operation since 1976 and has been mining on phase 2 and phase 3 pits, which will be completed in 2026.
