an article i googled across today.. was written 9th of April...

an article i googled across today.. was written 9th of April

BRITISH mining giant Rio Tinto is on the verge of pulling punches with Canadian mining mogul Stephen Dattels, over the Rössing South uranium deposit in Namibia’s Erongo Region.

At the centre of the squabble are allegations that Rio Tinto is flexing its muscles to lay its hands on the Rössing South deposit, co-owned by Australian-owned Extract Resources Ltd and London-based Kalahari Minerals PLC, the companies in which Rio Tinto acquired stakes last year.
Dattels was quoted by Canadian newspaper, Financial Post, as saying that Rio Tinto was trying to gain control of the resourceful Namibian uranium deposit, without paying the full price for the deposit.
Dattels himself is said to have invested heavily in the project in recent days and wants any take over to honour its financial obligations to his satisfaction.
Unhappy investors also lashed out at the Iranian Government, which holds stakes in Rio Tinto and co-owns the Namibian-based Rössing Uranium Ltd, a company controlled by Rio Tinto.
Geological studies have confirmed that Rössing South is a world-class resource, which could generate millions of dollars in revenue once mining commences at the site.
Rio Tinto, which runs the Rössing mine just a few miles away from the Rössing South deposit, is now trying to use its stakes in Extract and Kalahari to lay its hands on the untapped Rössing South project.
When Rio Tinto acquired stakes in Extract and Kalahari last year, it went on to campaign for the merger of the two companies. Reports suggest that if Extract and Kalahari were to merge, Rio Tinto would be able to buy shares in the combined company without being subject to a 20% cap, as required under Australian takeover laws.
The merger was called off over concerns that Rio could take control of the company without paying a premium for it.
Rio Tinto is now understood to be talking to other Extract and Kalahari shareholders to try to gain support for a joint venture that would allow it to run Rössing South.
The Financial Post quoted a fuming Dattels as saying, “Why should Rio Tinto be able to muscle the shareholders of Extract and Kalahari around to suit its own benefit? In my point of view, there is a much better alternative, which is to have both companies sold to the highest bidder.”
Rio Tinto recently said it would transfer its interest in Extract into the Rössing mine, inducing fears that the envisaged plans would automatically give the Iranian Government a stake in the project too, amidst fears of that country’s nuclear plans.
Questions sent to Rio Tinto’s head office in London went unanswered at the time of going to press


link : http://www.informante.web.na/index.php?option=com_content&task=view&id=3833&Itemid=101