This new plant will be the second desalination plant at the coast.

Areva’s project director, Alain L’Hour has suad that the laying of 48-km pipeline from its desalination plant to Trekkopje Mine, which must start production in 2010, has started.

Alain also said that the plant should be completed by the end of 2009.

The company aims to run the project up and running by 2011, which depends on water supply agreement.

The two plants will together cost around NAD3,3 billion.

Earlier, the company and Areva have conversed about a joint venture regarding the seawater intake north of Wlotzkasbaken, but afterward opted each to have its own intake and the desalination plant, fully owned and operated by the company and Areva respectively.

The company’s Willem Venter, who is directly involved with the project, said water demand for the existing and the potential new uranium mines will increase from seven million cubic metres to around 79 million cubic metres a year by 2015.

Desalination is the only possible option to meet this demand, Venter said.

After the NamWater plant is up and running there will still be a shortfall, depending on the number of mines becoming a reality then, he told the press briefing.

Venter said only the mines utilizing its plant would have to pay an increased tariff for the desalinated water.

Towns’ water tariffs will be subjected to the normal annual increases, he said, although the water they will be getting will be of a much better quality.

The company has been considering a desalination plant for around 10 years now, but it only became a necessity in the 2007.

The plan to open a new desalination plant was decided in June 2008, when the company and the Ministry of Agriculture, Water and Forestry presented a new desalination plan to a Cabinet committee chaired by the president Hifikepunye Pohamba.

A joint ministerial committee, involving Ministries of Agriculture, Water and Forestry, Finance and the Justice was established to supervise the financing of project.

In November 2008, South Africa’s CSIR was appointed to conduct the environmental impact assessment for proposed project.