What have been the main highlights from Walvis Bay Salt in the past year?

In Namibia, value addition remains of strategic importance. Walvis Bay Salt invested in a salt refinery a while back, and although we experienced initial challenges, the past few years have been successful for this business unit, especially regarding volumes and efficiency improvements. This resulted in this subsidiary performing closer to shareholder expectations.

Secondly, Walvis Bay Salt is successful in growing its market share in Southern Africa and also in the chemical market segment. In terms of our economy-of-scale benefits, we are now nearing 1.1 million t/y of crude salt. This enables us to target new markets constantly.

A third highlight is the fact that we are in the last steps of renewing our port lease agreement for another 25 years. This follows the successful renewal of our mining lease some 2 years ago.

Finally, the International Salt Forum will be hosted in Namibia in Swakopmund during the first week of November this year. The conference never took place in Africa before, so we are very proud of this.

What are the trends affecting the current demand for chemical-grade salt?

We are seeing strong demand from the East particularly, as they want to secure a supply of chemical-grade salt from Namibia. The demand outweighs the supply. Additionally, the chemical industry in South Africa remains interested in our production, and key players want their salt from us because of our logistical capability, together with our ability to meet the higher chemical grade specifications.

We are working on a project to start producing high-purity salt. We expect it to compete on a price basis with PVD salt internationally. The Russian / Ukraine conflict resulted in higher energy prices, which is having a detrimental effect on PVD salt production costs.

What latest investments have you made to increase the efficiency and sustainability of your operation?

Following the successful mechanistic modeling exercise of our salt field system, we have installed more aqueduct flow meters that will optimally measure our seawater intake accuracy. The recent investment in cold milling harvesting technology resulted in significant efficiencies and a general improvement regarding product quality.

We have invested in feasibility studies to assess potential additional benefits such as Bittern Beneficiation, Beta-carotene production, Underground Brine Extraction, Slurry Pump Transportation, and High Purity Salt Production. Some or all of these feasibility studies may become viable future projects when conditions become favorable.

We are working in an environmentally sensitive area, so whatever we do, we must be cautious about the impact of our operations on nature.

In terms of our social investments, our CSR program remains around the development of the Namibian child. We do that from many angles; investment in mathematics education, we run an orphanage, and we are the main sponsors of the Namibian under-19 cricket team.

What is your take on offtake agreements and deal-making?

We normally try to close in on long-term deal agreements, rather than single vessels on a spot basis. We try to establish long-term relationships; this brings stability for both suppliers – in terms of production planning - and for the customer. This also means freight and logistics planning can be optimized. We compete not on a FOB basis but on delivered CIF terms.

How do you assess the state of the Namibian economy?

Namibia is a politically stable and safe country. This is key to attracting FDI, opening more mines, and stimulating value-added businesses associated with mining. Namibia’s strategic location with regards to the global markets is fundamental, and our ports and infrastructure development are crucial assets, but we acknowledge the fact that more has to be done to get our rail system effective again.

There are also positive developments with green hydrogen and oil in the country. Putting all this together, I expect a boom in Namibia in the next couple of years.

How will de-commoditizing your salt unlock value?

Our future growth will come from going higher up in the value chain. The strategy is to de-commoditize our product. Our high-purity salt initiative is one way of going higher in the value chain.

What are your priorities to remain the largest producer of solar sea salt in sub-Saharan Africa?

Cost-competitiveness is key, and to achieve this, we must remain lean. We will make sure that we keep having innovative ideas and execute such ideas effectively after a proper evaluation process.