government wants share in rssing south

Government wants share in Rssing South through Epangelo PDF Print E-mail
Written by Nyasha Nyaungwa
Friday, 30 July 2010 10:15

The managing director designate of Epangelo mining company, Mr Eliphas Hawala, has told the Economist that his company is currently looking at ways on how it can acquire a stake in Extract Resources Rssing South project. We want Rssing South and they (Extract Resources) know we want in, but it is too early to talk about specifics, Hawala said .
Extract Resources has been in talks for several months with potential partners in the development of Rssing South, which it says has the potential to produce 15 million pounds of uranium oxide a year, making it the worlds second-largest uranium mine.


During a visit to Russia early this year, President Hifikepunye Pohamba signed a memorandum on cooperation in exploration and development of Namibian uranium deposits with Russian President Dmitry Medvedev
The document lays out opportunities for joint ventures in exploration, development and processing of uranium ore as well as uranium enrichment.
Immediately after the signing of the MOU, state nuclear power corporation Rosatom indicated its desire to have a stake in Rssing South which analysts believe will be done through Epangelo.
Rosatom head, Sergei Kiriyenko, announced that his company was ready to invest US$1 billion in uranium deposits in Namibia. We are ready to guarantee investments, he was quoted as saying, emphasising that Rosatom could bring a deposit like Rssing South to production quickly and efficiently.
Epangelos new managing director explained that the state-owned companys involvement in the mining sector was necessitated by the slow progress in the implementation of the Minerals Policy by mining companies in the country.
The aim of the Minerals Policy is to create wealth for the locals, but nothing much has been done by mining companies to ensure that Namibians fully benefit from their minerals. Progress has been taking place but at a slower pace, that is why it is very important for Epangelo to be involved
The keyword is participation. We start with humble beginnings until we increase our resources. We will start with the strategic minerals uranium and diamonds- and then move to other minerals, Hawala said.
He added that there is a mixed feeling among mining companies on what they think about the state mining company entering the sector.
There are mixed feelings. There are those who see security in partnering with Epangelo and those that are still skeptical. Some companies are puzzled, but we are not looking at extremes in terms of ownership. With time once they learn that we are not about extremism then it will put them at ease.
Hawala said that Epangelo is looking at meaningful participation in the mining industry but this will be project specific. He said, depending on the size and stage of a projects development, they will decide on whether to acquire a 10, 20 or 50% stake in a company just like in the case of Namdeb, which is a 50/50 joint venture between the government and DeBeers.
There are a number of modalities that still needs to be worked out but definitely a situation where there is 100% private sector involvement and 0% public involvement is not what we want. Also, it will not be correct for us to say we want a 90% stake in a company, while private companies have a 10% stake. This is the extremism we are talking about., Hawala said.
He concluded by saying as the new managing director designate for Epangelo, I am ready to establish positive partnerships that will ensure Namibias economic independence and prosperity for all.