all eyes on swakop uranium, epangelo deal

All Eyes On Swakop Uranium, Epangelo Deal

Desie Heita

7 December 2011

Windhoek — International mining companies have their eyes on how the Namibian government wraps up the deal for a direct ownership in the fourth largest uranium deposit in the world Swakop Uranium.Extract Resources, which is developing the Swakop Uranium, has just applied for a mining licence, but has not yet finished its marathon negotiations with State-owned company, Epangelo Mining, for equity participation.

The market is now looking to see how events unfold, in view of the government's new strategic mineral policy that puts mineral rights in the hands of the State through Epangelo.Uranium, along with gold, copper, coal, diamonds, petroleum and rare earth metals, are among strategic minerals whose rights would be vested in the State.

Extract Resources told New Era that its discussions with the government "are well advanced" but said it was not in a position to comment on when the agreement would be finalised.

"To date the government has been satisfied with our engagement with Epangelo," said Extract Managing Director, Jonathan Leslie.

Epangelo Mining is negotiating for a 10 percent shareholding in Extract Resources. The Ministry of Mines and Energy issued Extract Resources with a mining licence last week but with specific terms and conditions.The company says it would continue to "evaluate offtake arrangements and opportunities for investment in the project by strategic partners".

Meanwhile, Epangelo Mining is also in separate discussions with Chinese investment arm, CGNPC Uranium Resources Co that is currently in negotiations with Extract shareholders for a significant shareholding in Swakop Uranium mine.

Epangelo wants an additional 10 percent ownership through the Chinese company, which, if it succeeds, would bring Epangelo's ownership in the mine to 20 percent.

http://allafrica.com/stories/201112071153.html