Name and Location
Sandpiper phosphate project.

Location
The project tenements lie in waters about 60 km off the coast of Namibia and cover a combined area of about 7 000 km2 in the regional phosphate-enriched province to the south of Walvis Bay in water depths of 180 m to 300 m.

Project Owner/s
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.

 Project Description
The project has total Joint Ore Reserves Committee-compliant measured and indicated resources of 226.8-million tons at 19.7% phosphorus pentoxide.

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

It is intended that dredging of the seafloor sediments will be achieved with a large-capacity trailing suction hopper dredge, using existing technology.

Potential Job Creation
The operations could potentially employ about 450 Namibians directly and indirectly in the Erongo region.

All-in Sustaining Costs/All-in costs
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% discount rate, of $297-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 currently estimated at $326.3-million (stated in March 2012 prices).

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 has said that it is confident of progressing with its Sandpiper marine phosphate project as it addresses all environmental recommendations following renewed environmental consultations.

The group has been working to correct much of the misinformation it believes surrounds the project, which has been at the centre of controversy over its ambitions of trawling the seabed for phosphates.

However, the project has stalled, facing environmental objections, with its environmental clearance certificate having been set aside in 2018, after having been awarded in 2016.

There is also a court case under way over concerns that seabed mining for phosphates could inflict irreversible damage to Namibia’s lucrative fishing industry.

Following completion of an independent report commissioned by the Environmental Commissioner in 2018, after another round of public consultation, NMP has progressed work to effectively deal with recommendations made in that report, NMP COO Mike Woodborne has said.

All the work NMP has already done has only confirmed the project will have minimal impact, and that it will be an economic catalyst, NMP CEO Chris Jordinson adds, referring to the dozen environmental studies that have been completed, which have concluded that the Sandpiper project will have “no significant environmental impact on the marine environment”.

“There is no factual evidence [that] phosphate mining and fishing cannot coexist.”

While the legal action is still holding up the project, NMP continues to invest in the operations, with the project having been technically ready since 2012.

“We believe in the project. The shareholders believe in the project. It is a good project and the project fundamentals are excellent. We just have to persevere with the path we are on,” Jordinson comments.

However, until the current court action is finalised, the proposed development and economic benefits of NMP’s phosphate project remain on hold.

Key Contracts and Suppliers
J Midgley & Associates and Enviro Dynamics (environmental consultants).

Contact Details for Project Information
Minemakers, tel +61 8 9264 7000, fax +61 8 9264 7099 or email frontdesk@minemakers.com.au; or Magnus Investor Relations & Corporate Communication, John Gardner, tel +61 413 355 997.
Union Resources, tel +61 2 9233 4750, fax +61 2 9233 4749 or email info@unionresources.com.au.
Tungeni Investments, tel +264 61 400 205, fax +264 61 221 333 or email info@tungeniafrica.com.