In 2012, Namibian Marine Phosphate commissioned an Environmental Impact Assessment (EIA), subsequently in line with the Environmental Management Plan (EMP) a site specific detailed Verification Survey was undertaken (2013-2014). This survey was undertaken: to establish a reference baseline against which dredging could be assessed; to validate the findings of the EIA, thereby confirming the degree to which the proposed operations may affect the marine environment and in particular the commercial fisheries in Namibia.
These studies have involved a host of internationally accredited fisheries and marine scientists, acknowledged experts in their fields, who have relevant knowledge of the Benguela Ecosystem. The activities and findings of these studies have, in addition been subjected to an independent peer review process as well as external reviews by Government appointed specialists.
The Company fully supports the principles of responsible development and management of ocean based industries and reiterates that the clear consensus of independent expert opinion with knowledge of the Benguela Large Marine Ecosystem is that at the scale of the proposed operations, the project can be safely developed and also be well managed within the existing Namibian mining and environmental legislation and regulations without any significant impact to fishing resources or the Benguela ecosystem and in co-existence with the Fishing Industry.
Project Location and Setting
Namibian Marine Phosphate (Pty) Ltd (NMP) is developing the Sandpiper Project and is the holder of Licence Area ML170, located 60 km offshore from Meob Bay. The Licence Area is 2233 km2 in extent and lies in water depths between 190 and 345 m. ML170 contains an estimated 1.8 billion tonnes of phosphatic sand with an average phosphate (P2O5) content of approximately 18%. NMP has identified a 20-year target production area (SP-1) within ML170. SP-1 is approximately 170 km2 in size. From within the SP-1 production area, NMP intends to recover annually approximately 5.5 million tonnes of sediment from an area of up to 3 km2. This will annually produce 3.0 million tonnes of phosphate concentrate at 27.5% P2O5.
Regional mapping undertaken by the University of Cape Town’s Marine Geological Unit in the 1980s has shown that pelletal phosphorite occurs in varying concentrations in the seabed sediments on the Namibian continental shelf from the Kunene River in the north, to Luderitz in the south. Areas of potentially economic concentration occur in two main pelletal phosphate deposits, one to the north of Walvis Bay near Rocky Point and a second much larger deposit to the south-south west of Walvis Bay.
ML170, incorporating the SP-1 production area, lies within the zone of richest concentration of marine pelletal phosphatic sands (>15% P2O5) that lies in a discrete zone between Walvis Bay and Luderitz in water depths greater than 200 m and up to 345 m, this is seaward of the 200 m bottom trawling prohibition zone.
Before being permitted to commence operations in ML170, NMP is required to obtain an Environmental Clearance Certificate from the Ministry of Environment and Tourism (MET). This requirement is an important condition of the Mining Licence.
NMP owns the Sandpiper marine phosphate project, approximately 60km off the coast of Namibia, which covers a total area of approximately 7000 km2 in the regional phosphate enriched province to the south of Walvis Bay in water depths of 180–300m.
NMP is placed in a strategic position to also develop a new phosphate province in Namibia and controls a substantial part of the most prospective areas. The area specifically includes all of the central enriched core area, where published regional mapping shows phosphate concentration of more than 20% by weight. These deposits were delineated during regional scientific studies in the 1970s but have remained undeveloped. The deposits occur as unconsolidated sea floor sediments, which now lie within the reach and capability of currently available dredging technology. The NMP JV is focused on an accelerated programme for development of the project. Development efforts to date have included extensive resource delineation, investigations and discussions with several reputable contractors and organisations in the key technical areas of marine mining/dredging technology, beneficiation and potential off take candidates, as well as with local, regional and national government departments and officials, which resulted in the completion of a Definitive Feasibility Study at the end of March 2012.
Mineral Resources
Based on the Mineral Resource development work undertaken to date independent estimates of the current (April 2012) phosphate Mineral Resources are:
Category | Tenement | Mt | % P2O5 |
Measured Resource (within the Initial Target Recovery Area) | ML170 | 60 | 20.8% |
Indicated Resource (within the Initial Target Recovery Area) | ML170 | 105 | 19.6% |
Indicated Resource (outside the Initial Target Recovery Area) | ML170 | 62 | 18.9% |
Total Measured & Indicated | ML170 | 227 | 19.7% |
Total Inferred | ML170, EPL 3323, EPL 3415 |
1608 | 18.9% |
Feasibility Study
HIGHLIGHTS
Project Economics Summary
The financial highlights from the Definitive Feasibility Study over the first 25 years of project operation are summarised as follows:
Feasibility Study Base Case (per UCL Resources announcement)
Sandpiper Marine Phosphate Project
NMP's Sandpiper marine phosphate project on the continental shelf off Namibia is contained within tenements of some 7000km². These cover the core area of phosphate mineralisation delineated by government surveys during the 1970s. There is a considerable further extent of phosphate beyond the Sandpiper project.
The Sandpiper deposit occurs as unconsolidated sea floor sediment containing a mixture of old seashells, mud and phosphate sand. It now lies within the depth capability of available dredging technology.
Having recently completed a successful Definitive Feasibility Study, NMP is now moving into a project optimisation phase while it seeks to gain the environmental approvals that are needed before the project can be initiated.. In addition to current efforts on the definitive feasibility study and resource upgrade, investigations and discussions are also being progressed with several reputable organisations for product marketing to establish key market products and engage with potential off-take candidates.
NMP is excited about the potential of the Sandpiper project to enhance the economy of Namibia, to provide quality jobs for the Namibians, to assist in producing the raw phosphate material the world needs to feed itself, to grow and to prosper, and to reward its shareholders.
Production from many of the world's major phosphate source areas are in decline, and other supply regions are politically unstable. Namibia has the potential, with the vast resources so far outlined by NMP at Sandpiper, and in a continuation of the phosphate belt beyond the NMP tenements, to become a major world supplier.
A simple shallow dredging of a very small area annually of Namibia's continental shelf can assist in this local, national and global aim.
NMP believes it can be done with minimal impact on the environment and Namibia’s important fishing industry.
As it is such a large resource, the project is likely to be sustained for over a century, providing long-term benefits to Namibia and its citizens.
In the future, and subject to gaining all necessary approvals from the Namibian Government, NMP is keen to undertake a second stage development to produce high value finished fertilisers which can enhance the land productivity of Namibia, neighbouring countries and the importing world.
NMP's vision is that Namibia will become one of the major producers of the essential and critical mineral, phosphate.
NMP's mission is to become one of the world's leading suppliers of raw phosphate and, later, of phosphate fertiliser products. It aims to do so safely and with the least possible impact upon the environment both offshore and onshore and on other Namibian industries.
Namibian Marine Phosphate (NMP) is a Namibian registered joint venture company, the shareholders of which are Mawarid Mining LLC from Oman and Namibian company Havana Investments (PTY) Ltd.
NMP is developing the world class Sandpiper phosphate project located off the coast of Namibia.
Phosphates are the naturally occurring form of the element phosphorus.
Most phosphate is mined in North America, China, Morocco, the Middle East and Oceania. These suppliers face significantly increased demand given the worldwide increase in food production, the loss of arable land to urban sprawl, desertification, climate variability and growing populations.
In 2008, scientists from Sydney's University of Technology and Sweden's Linköping University warned that phosphorus supply could peak in 30 years' time, with reserves exhausted in 50 to 100 years. This would have a severe impact on the world's food supply because phosphorus is an essential element for fertiliser, and effective fertiliser is the only way to increase crop yields when the supply of land is fixed.
NMP is developing a world class phosphate project, which will establish Namibia as a premier rock phosphate producer in the global market.
There is potential to establish future downstream processing of NMP's beneficiated phosphate into higher value phosphorous and compound fertilisers of the resource, particularly for the production of fertiliser. Local production of phosphate will help to secure agricultural productivity and food security in Namibia and the region, as well as elsewhere in the world.
The project will contribute to national and regional growth through employment, royalties and tax revenues. Direct permanent employment will be created, as well as indirect jobs in supporting services. These will include short-term employment during construction and the opportunity for capacity development and training.
Namibian Marine Phosphate (Pty) Ltd (NMP) is developing a world class phosphate project off the coast of Namibia that will establish Namibia as a premier rock phosphate producer in the global market.
The company has a current and valid Mining License ML170 that was issiued in 2011 for a period of 20 years covering the mineral reserves and resources defined in the Sandpiper phosphate deposit. Commencement of commercial dredging operations is conditional on the granting of an environmental licence for both the land and marine components of the project. NMP is at an advanced stage in the gaining of such clearances for the full development of the Sandpiper phosphate project.
Namibian Marine Phosphate (Pty) Ltd (NMP) is developing a world class phosphate project off the coast of Namibia that will establish Namibia as a premier rock phosphate producer in the global market, contributing significantly to the Namibian economy and supporting ongoing crop production through the provision of phosphorus for fertiliser.
NMP is developing a world class phosphate project, which will establish Namibia as a premier rock phosphate producer in the global market.
There is potential to establish future downstream processing of NMP's beneficiated phosphate into higher value phosphorous and compound fertilisers of the resource, particularly for the production of fertiliser. Local production of phosphate will help to secure agricultural productivity and food security in Namibia and the region, as well as elsewhere in the world.
The project will contribute to national and regional growth through employment, royalties and tax revenues. Direct permanent employment will be created, as well as indirect jobs in supporting services. These will include short-term employment during construction and the opportunity for capacity development and training.