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Rössing has been engaged in the preparation of a comprehensive investment proposal to extend the production life of the mine through to approximately 2016.

Rössing submitted a Life-of-Mine Expansion (LoME) proposal to Rio Tinto and the overall project was approved. This follows nearly three years of work on the LoME project and ends a long period of unvertainty for Rössing and all its stakeholders.

The LoME project involves a total capital expenditure of US$ 112 million. About half of the cost will be for additional shovels, haul trucks and other support mining equipment. The remainder is for refurbishment of the processing plant to enable Rössing to return to full production capacity of 4000 tonnes per year within the next two years.

The LoME project is to be rolled out during 2006 and 2007 and will lead to the employment of approximately another 150 additional employees.

The mine currently employs 833 em-ployees (of whom 96% are Namibians) and around 350 contractors.

Rössing is one of the largest open pit uranium mines in the world and through the production of uranium oxide (U3O8) serves the world energy industry. As a primary producer of U3O8 Rössing produces about 7.7% of the world‘s primary production.

In July 2003, 100 000 short tonnes of U3O8 was produced since production started in 1976. In August 2003 the mark of 1 billion tonnes of rock hauled from the open pit was reached. After producing 2 751 tonnes of U3O8 in 2002 and 3582 tonnes in 2004, the target for 2005 was set at 3 800 tonnes of U3O8.

Despite an upward trend in spot prices for U3O8 during 2003 and 2004, Rössing came under pressure due to the strong South African Rand (to which the Namibian Dollar is linked) against the US Dollar. Rössing sells its U3O8 in US Dollars. The company made a loss in 2003 of about N$ 140 million and N$ 75 million in 2004. The ouutlook in 2005 has much improved with a weaker South African Rand against the US Dollar and further increases in the spot market price of uranium oxide, currently at US$ 35.25 per pound.