| The sharp end of foreign investment |
|
|
| Written by Daniel Steimann | ||||
Page 2 of 2 Copper is another example where we can add more value
locally. Despite a new investor and despite the fact that copper has been mined
in Namibia for about 100 years, we still export blister. This is the one
industry where we should be able to generate economies of scale, especially if
we add a part of the Zambian production.Uranium is the other commodity that begs for bigger investment. With a second mine operational, a third and a fourth in the pipeline, and talk of at least another two, certainly at some point the economies of scale must be there. And in terms of the very advanced technology and high cost, there is no sound argument why the factory needs to be in Germany or the USA. Enrichment can be done right here. About three years ago, the international uranium price statically hovered around US$11 per pound. Last year it averaged around US$100 per pound - a tenfold increase over three years. That is the number one reason why uranium mines are mushrooming but that also creates tremendous opportunity for more local investment, bringing more of the supply chain to local territory. And yes, if nuclear power is one of the long-term solutions for our energy crisis, then a nuclear power station we shall have. Gold is perhaps the one commodity that does not lend itself to local beneficiation except that there is value to be added when one takes bullion and refines it to jewellers’ grade. On top of that, there are mineable deposits of both coal and iron, and these two usually go together. So in the long-term, there is absolutely nothing that stops us from developing these industries. And how shall we fund all my fancy dreams. This is perhaps where the slow process of bringing local capital back, will still play a very meaningful role in future. All the technology we need exists, a very large chunk of the capital we generate ourselves, and the products derived from these primary commodities, can be shipped anywhere in the world, so the small local market is not a drawback. In the end, I still believe we have to keep on looking for foreign investors, but we have to shift our focus to the commodities we already produce and control. |
||||
| < Prev | Next > |
|---|