Rössing’s commitment to long-term growth

Mining plays a prominent role in the Namibian economy. As a major employer and a purchaser of goods and services, CNNC Rössing Uranium’s contribution to the economic development in Namibia, and more specifically in the Erongo Region, is substantial.

This gives rise to a large ‘multiplier effect’, the phenomenon whereby spending by one company creates jobs and income for and further spending by others.

An important part of Rössing’s contribution is good community relations, which is as necessary for their business success as the effective management of operations. With this in mind, Rössing implements long-term community development plans which focus on quality of life for Namibian citizens.

The Rössing Foundation, established in 1978, has a solid reputation as a well-managed corporate social investment (CSI) vehicle. The Foundation has been integral in the upliftment of many Namibians through education and economic programmes, and continues to affect meaningful change.

As much as the financial challenges were difficult to overcome, the Rössing Foundation pursued its commitment in assisting Government to improve primary and secondary education, developing the workforce and achieving economic diversification. In 2019, Rössing Uranium supported the Rössing Foundation and other community initiatives with just over N$26 million, of which N$12 million went to the Rössing Foundation, N$13 million to the Arandis asbestos-roof replacement project and N$1 million was in-kind and cash contributions to worthy community initiatives.

The CSI investments are over and above the direct and indirect economic benefits created by the mine through local employment and the procurement of goods and services from local businesses. In 2019, total expenditure for goods and services by Rössing amounted to N$2.72 billion (2018: N$2.49 billion), of which 75 percent was spent on Namibian registered suppliers. The bulk of local expenditure remains in the Erongo (43 percent) and Khomas (44 percent) regions.

The period in review continued to demonstrate Rössing’s value to Namibia through in its contribution to Government revenue, which consisted of N$77.6 million in royalties and N$154.5 million in PAYE on behalf of employees. No corporate tax or dividends were paid in 2019.

Payments to public enterprises, such as NamWater and NamPower, amounted to N$450.1 million (2018: N$456.1 million), which includes the Vocational and Education Training levy of N$7.7 million paid to the Namibia Training Authority.  Rössing also spent N$612.7 million in net salaries and wages.

Rössing provides a strong base for economic growth in communities located in the Erongo Region and in Namibia as a whole. Rössing continues to build on its reputation as a business that is working for Namibia, through various in-kind and cash contributions to worthy community initiatives, and currently, in support of the Government’s activities in combating the spread of Covid-19.

Contributed by Rössing