CGN: Building a modern factory in barren deserts and developing a new win-win cooperation model along “Belt and Road”

Company profile
 
China General Nuclear Power Corporation (CGN) was founded in September 1994. Missioned with developing clean energy to benefit human society, the company focuses on the development of clean energies such as nuclear power, nuclear fuel, wind power, and solar power globally in a cross-regional and multi-base way. It also gains sound development in nuclear technology, finance, public utilities, energy-saving technologies, etc.
 
Challenges
 
In recent years, Chinese companies have responded to the Belt and Road Initiative and actively “go global” to participate in international market competition, achieving good results. At the same time, the economic and social environment along the “Belt and Road” is complex and changeable. The changes of security situation, legal and regulatory policies, and political stability has brought risks to the operation and management of overseas projects. In the process of overseas operations of Chinese enterprises, it often causes disputes, conflicts, and even stagnant projects due to inadequate integration with local communities, inadequate understanding of host country customs and culture and lack of communication with local people, NGOs, and media.
 
Solutions
 
In 2012, CGN Uranium Resources Co., Ltd. and the China-Africa Development Fund successfully acquired the Namibia Husab mine, which is the single biggest industrial investment by China in Africa so far. Since completing the acquisition and beginning to prepare for the construction, CGN has adhered to the philosophy of win-win cooperation, actively taken measures to reduce the impact of project construction on the environment, and worked hard to integrate into local communities and promote local economic and social development, thus creating a new win-win cooperation mode of “Belt and Road”.
 
Cultivating local talents
 
Native Namibian personnel is the main driving force for the development of Husab uranium mine. In 2017, the proportion of local employees in Husab uranium mine had reached 95%. To further enhance the capacity of local talents, CGN has invested nearly 200 million Namibian dollars to provide systematic training for employees in different positions and at different ranks such as contractor workers, maintenance workers and operation operators.
 
Taking the drivers of mining equipment as an example, CGN has provided theoretical training, 3D simulation training of mine road scene and field practical operation training for them. The combination of theory and practice enables the drivers to operate the mine cars with a loading capacity of 330 tons skillfully.
 
Protecting rare plants
 
To protect the ecology of desert, CGN strives to minimize the effects on environment throughout the whole process of project construction. In the early stage of the project, to protect welwitschia mirabilis, the national flower of Namibia and one of the “eight rarest plants in the world”, CGN hired local botanists to study it together and optimized the route design of the project. According to the original plan, 200 of the species needed to be transplanted, but only 3 were eventually transplanted.
 
Promoting community culture
 
To enrich local culture, CGN continues to held the “Husab Cup” marathon, which has become one of the largest marathon events on the African continent. On August 5, 2017, the third “Husab Cup” marathon kicked off in Namibia, which attracted over 780 professional marathon runners and amateur long-distance runners from China, Namibia, Zambia, South Africa and other countries. The number of participants hit a new high. The spare money of the marathon preparation fund was donated to local primary schools to improve sports facilities and to support the development of sports and culture in Namibia.
 
In addition, CGN has specially set up the Sike Foundation and launched projects like development support for small and medium-sized enterprises, donation to kindergartens and schools, and the construction of the National Disaster Relief Center of Namibia to promote the progress of local small and medium-sized enterprises, education and communities in various aspects.
 
Achievement
 
Social benefits
 
The “Husab Cup” marathon which has been held for three consecutive years, has become one of the largest marathon events in Namibia, which effectively promotes the development of sports and culture in Namibia and facilitates the integration of different countries and cultures.
 
The Sike Foundation, which provides special funds to support youth employment, food supply, drought relief, was highly recognized and appreciated by the Namibian president Geingob, for its contribution to “economic development”, “social progress”, “infrastructure construction” and “international relations” in the common prosperity plan.
 
Environmental benefit
 
The Husab uranium mine project has carried out the environmental protection concept from engineering construction to operation and production, and the impact of production and operation on the environment was reduced to the minimum. Before the construction, the company cooperated with local experts to conduct research on rare animals and plants, optimized project design route and reduced transplantation. After it was put into production, the company strictly abides by local laws and regulations, handles waste discharge properly and has realized green development.
 
Economic benefit
 
Husab uranium mine is China’s largest investment project in Africa. According to the statistics of the Chinese embassy in Namibia, the total investment of Chinese enterprises in Namibia is about USD 3 billion, while the investment of CGN on Husab uranium mine accounts for 73%. After the Husab project was put into production, it pays a tax of 1.1 to 1.7 billion Namibia dollars to the Namibian government each year, making Namibia the world’s second largest producer and exporter of natural uranium. The country’s exports increased by 20% and the GDP increased by 5%. It has also created thousands of jobs. On February 23, 2017, after learning that Husab uranium mine had successfully produced the first barrel of uranium, the Namibian President Geingob sent a congratulatory letter through the Chinese Foreign Ministry, which said, “Namibia has an economy of less than USD10 billion a year. However, the Husab uranium mine project which is heavenly invested makes an outstanding contribution to improving our country’s employment, revenue and capacity. We welcome such investors.”
 
Prospect
 
Looking forward to the future, CGN will continue to uphold the concept of “win-win sharing” and give full play to its own advantages to take root in the local community, and achieve mutual benefit and win-win results. It will practice the new win-win cooperation model of “Belt and Road”, and to be a model of overseas CSR fulfillment of “going global” Chinese enterprises.