I suggested in a post last week that there may be a stand off...

I suggested in a post last week that there may be a stand off between the Government of Namibia, and potential owners of Extract.

Possible reasons for the current low (possible) bid include:
a) uncertainty as to the Namibian Government's taxation and royalty expectations.
b) expectation that the European monetary crisis is about to get much much worse, and the price of all stocks will be significantly lower.
c) China leaning on the Namibian government to repay past favours

The lack of any other party moving to take over Extract or Kalahari suggests to me that there are strong reasons for bidders not to make a bid for an attractive long life asset.

Some questions....Does the Chinese Government have direct investments in Namibia, and what is the nature of these? How much money has China invested in Namibia?
See the references below.

http://www.nytimes.com/2009/09/22/world/africa/22namibia.html?pagewanted=all

http://www.africagoodnews.com/development/education/2005-chinese-space-centre-to-aid-namibian-development-efforts.html

http://en.wikipedia.org/wiki/People's_Republic_of_China_%E2%80%93_Namibia_relations

If there is a stand off, the Chinese potential offers have effectively sounded out the Namibian Government on the value they would like to pay for both Extract, and Bannerman.

I think there is probably pressure building in the Namibian government for a decision, as they would be wanting the revenues that will come from the mines being producers. At the same time, they would realize that an obscure decision that runs against marketplace transparency will effectively stop the flow of foreign investment in Namibia, and place them more firmly in the control of China.

What will they decide?