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
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 is progressing the application for an Environmental Clearance Certificate (ECC) for its mining licence (ML170) for the Sandpiper marine phosphate project.

The company has appointed an environmental-assessment practitioner (EAP) to manage the application process, which is at the scoping stage. Part of this stage includes consultation with stakeholders and the public.

Public meetings were previously held in Windhoek on February 9 and in Walvis Bay on February 11.

The EAP has requested interested and affected parties to submit their initial comments and concerns for consideration and inclusion in the scoping document. This document will be completed and made available for comment before being submitted to the Environmental Commissioner.

Previously, industry bodies the Confederation of Namibian Fishing Associations, the Namibian Hake Association, the Midwater Trawling Association and fishing company Omualu Fishing had instituted legal proceedings against NMP to have its mining licence at Sandpiper declared as having lapsed.

The High Court of Namibia, thereafter, confirmed in late June 2021 that the mining licence was still valid, but that the company would have to obtain an ECC before it could proceed with the project.

An updated assessment of the Sandpiper project’s parameters shows that the 20-year mine plan covers less area than previously communicated, coming in at a total area of 34 km². The size of the project’s average yearly mining area will be 1.7 km² rather than the 2.5 km² previously stated, which represents less than 0.1% of the mining licence area of 2 233 km².

By comparison, 1.7 km² a year is a significantly smaller yearly footprint on the seabed than other current marine activities in Namibia, NMP has pointed out.

Although the Sandpiper project’s 20-year mine plan only covers 34 km², the socioeconomic benefits of the project will make a major contribution to the local and national economy, the company has noted.

In addition to the N$750-million capital already spent on the project, NMP’s direct economic impact will create opportunities for small- and medium-sized enterprises and other economic sectors.

Moreover, it will spend about N$1-billion on civil and local infrastructure and the project development will require a capital investment of N$5.2-billion. The project is expected to achieve yearly revenue of N$4.2-billion, contributing direct taxes of N$650-million a year, as well as royalties of N$78-million a year.

The hope is that beneficiation processes can be developed in Namibia along with energy and water developments in the Walvis Bay area.

Key Contracts, Suppliers and Consultants
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.