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Mining helps raise Namibian ratings

In the pit at
Rossing uranium mine
in Namibia
London, England — MININGREVIEW.COM — 14 December 2010 – Strong prospects for the mining sector were a major reason for Fitch Ratings Limited’s decision to revise Namibia’s outlook to positive from stable on its ratings. The country’s resilience to the global economic recession was another significant factor.

Releasing this news in a statement e-mailed from here, the agency said uranium output was expected to quadruple by 2015. The southern African country is the fourth largest producer of the metal, which is processed into fuel for nuclear power plants. Fitch rates Namibia’s long-term foreign debt at BBB-.

“The immense growth of the uranium sector will strengthen Namibia’s credit fundamentals,” said Veronica Kalema, director in Fitch’s sovereign group.

Uranium rebounded to the highest in more than two years as Asian utilities secure material for the next decade and China builds stockpiles, according to Macquarie Bank Limited. Asia may operate 300 nuclear power reactors by 2030, up from 115 units today, inspection and certification agency Lloyd’s Register Group revealed last week.