Contract Negotiations

Rössing's Management has confirmed that employees at its uranium mine near Arandis staged a peaceful demonstration this morning at 8:00 at the Mine's main entrance.

The Rössing Branch Executive Committee of the Mineworkers Union of Namibia (MUN) handed a petition to the General Manager Operations, David Salisbury and read a prepared statement. Mr Salisbury accepted the petition and stated to the assembled employees that contract negotiations are in progress and will continue, giving fair consideration to the points raised in the petition. Rössing's management confirms that it is committed to negotiate everyday until solutions to all the raised concerns are found and agreed on by both the Union and Company. Rössing looks forward to a joint statement affirming agreement on these matter with the Union.

The uranium market prices remain the worst in history which forces the Company to continuously review and reduce its cost to improve competitiveness in the world market.

Rössing has for some time communicated this difficult market situation with both employees and other stakeholders and will continue to make information on the market forces and progress toward improved competitiveness available.

Many cost increases are out of the control of the Company, such as increases in the price of things like water, chemicals, diesel fuel, employee benefits and inflation rate increases have combined this year to add approximately N$70 million to the Company's operating costs.

Fortunately, the Company's structured business improvement programme, Rössing Beyond 2000 (RB 2000), was introduced in 1999 to assist the company to meet its cost saving targets.

The target is to reduce the overall cost base by more than N$100 million by the middle of 2001. The programme is well supported by all employees through the implementation of cost saving projects and to date a saving of N$66.6 million has been reached.

Rössing contributes more than N$ 500 million directly into the local economy. Rössing's management is confident in the long term future of the Company and the management team, along with the employees, are working hard to reduce costs and make the operation more competitive in the world uranium market.

Issued by:
David Salisbury
General Manager Operations
Rössing Uranium
Tel. 064 520 2316
Fax. 064 520 2253