Name of the Project
Sandpiper marine phosphate project.

Location
The project tenements lie in waters about 60 km off the coast of, and 120 km south-west of, Walvis Bay, in Namibia, and the granted mining licence (ML170) covers about 2 233 km2 in water depths of 180 m to 300 m.

Project Owner/s
Namibian Marine Phosphate (NMP) is a joint venture company owned by Mawarid Mining (85%), an Omani registered entity, and Havana Investments (15%), a Namibian registered entity.

Project Description
The project has total Joint Ore Reserves Committee-compliant reserves of 132.76-million tons grading 20.41% phosphorous pentoxide and mineral resources of 1.69-billion tons grading 18.94% phosphorous pentoxide.

A 2013 definitive feasibility study (DFS) confirmed Sandpiper as technically and economically feasible, and envisages steady-state production of three-million tons a year of phosphate rock concentrate product (rock phosphate) grading 27.5% to 28% phosphorous pentoxide over an initial mine life of 20 years, including a two-year ramp-up period.

Seafloor sediments will be dredged with a large-capacity trailing suction hopper dredge using current technology, contracted and operated by an international dredging company.

New technology is now available to enhance project operations and monitoring. In terms of dredging equipment, autonomous and remote-controlled underwater vehicles can be used to assist in positioning ships and to obtain environmental monitoring information over long periods without the need for expensive support vessels.

Potential Job Creation
The project is expected to create 400 to 500 jobs in the construction phase and 150 to 200 jobs when in operation. A number of indirect jobs and services will be required, which will be in addition to the above.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% discount rate, of N$4.9-billion ($329-million) and an internal rate of return of 23.6%.

Capital Expenditure
Capital costs to first production for a three-million-tonne-a-year operation are estimated at N$5.4-billion ($362.7-million), according to the DFS.

Planned Start/End Date
Following a final investment decision and securing financing for the project, the estimated construction and commissioning period is 24 months.

Latest Developments
NMP’s job registration drive has received an “overwhelming response”, with more than 4 000 registrations recorded within the first two weeks.

Speaking to media on October 27, CEO Chris Jordinson said the sheer number of registrations was likely owing to Namibia’s high unemployment rate, which is above 30%.

The next steps of the registration drive will involve a series of information workshops to be implemented and hosted from March 2021. The workshops are intended to provide registrants with details about the project’s technical, environmental and development aspects, along with the related job opportunities.

In the interim, however, Jordinson said NMP “would be in contact with all registrants” to keep them up to date on the progress of the drive.

The registration process, which ends on November 30, will result in 600 applicants being employed at NMP’s Sandpiper marine phosphate project, which NMP intends to develop, assuming there is a favourable judgment for NMP on the legal action taken by three fishing associations and a commercial fishing company, and the environmental clearance certificate is granted.

An outcome for this legal process is expected in 2021, Jordinson said, noting, however, that no plan of action had been set in stone, should the outcome not favour NMP.

Despite the legal challenge, and once project permitting is completed, Jordinson is confident that NMP’s Sandpiper project will “be the starting block” for a prominent fertiliser industry for Namibia.

So far, NMP has, in accordance with Environment Management Act requirements, spent more than N$20-million in completing an extensive environmental study, including an environmental-impact assessment, a verification study, an environmental management plan and 28 independent specialist scientific studies.

Key Contracts and Suppliers
Jan De Nul (dredging operations); Tenova Bateman (process engineering) and local Namibian contractors and service suppliers.

Contact Details for Project Information
NMP, tel +264 64 278150 or email info@namphos.com.