BuisnessWeek - Namibia, stung by the collapse of the diamond industry two years ago, is trying to diversify its $8.2 billion economy by exploiting uranium deposits that are the second-biggest in Africa.Namibia's economy contracted 0.8 percent last year, after expanding 4.3 percent a year earlier, as mining output halved. Diamond production plunged to 929,006 carats from 2.22 million carats a year earlier
Namibian output may quadruple by 2015 as new mines are opened by companies including Extract Resources Ltd., more than doubling uranium's contribution to the economy, according to IHN. The industry accounted for 5.6 percent of Namibia's gross domestic product last year.
If the uranium industry increases by four times then it would be equal to 22.4% of the 2009 GDP.
Uranium companies are planning to spend more than $3 billion starting operations in Namibia
Existing operations, generally, are "only just" profitable at current price levels
RBC Capital Markets cut its 2010 uranium forecast by 11 percent to $44.50 a pound from $50 last month as supplies increase, and said the metal may trade at $55 a pound next year and $75 a pound in 2012
World nuclear association article on uranium in Namibia
Read full from From Next Big Future: