This news article, which I found on another thread, should ease people's concerns about the proposed changes to the Namibian Minerals Act / Policy...
By Toivo Ndjebela 05 May 2011
WINDHOEK - Mines and Energy Minister Isak Katali has poured cold water over fears in the mining industry that government is about to nationalize mines in the country.
Cabinet confirmed last week Friday that it has endorsed the declaration of uranium, gold, copper, coal, diamonds and rare earth metals as 'strategic minerals' and their rights for exploration and mining would be reserved strictly for state-owned mining company, Epangelo.
The new policy has sent shockwaves down the spines of many investors, many of whom fear their operations and interests in Namibia could be in jeopardy.
Many investors fear Namibia is emulating neighbouring South Africa, where government is weighing whether or not to acquire equities worth 60 percent in all mining companies.
Also across the border, the government of Zimbabwe recently released a new deadline within which miners there should meet the country's indigenization requirements.
But Katali has dispelled any fears that Namibia is emulating any of its neighbours, saying those already embarking on exploration or mining activities are not affected by the new announcement.
"We are talking strictly about any new mineral deposits that would be discovered. Not those already being developed by current investors," he told New Era at the weekend.
But it seems the new policy has already claimed its first victim, the owners of the Haib copper deposit in southern Namibia, whom governments say have made 'little progress'.
"The current licence holders have had exploration rights there for a very long time and little progress has been achieved over the years," cabinet said in a statement.
Namibia Copper Mines Inc and Rusina Mining NL controlled the Haib deposit, but it could not be confirmed whether the two entities still own the project.
Some mining companies in Namibia have already suffered declines in their international stock market values after the announcement came to the fore.
Extract Resources, for example, which is developing a uranium mine near Swakopmund, ended trading down 9.9% Thursday on the Dow Jones.
A fear-stricken investor from Hong Kong called New Era on Friday, seeking clarity on whether the new policy would affect his investment with an Australian company, currently developing a uranium mine in the Erongo Region.
After Katali's announcement of the policy in palrliament a week ago, President Hifikepunye Pohamba, during his state of the nation address on Wednesday last week, reaffirmed government's commitment towards making this policy a reality.
The new policy comes hot on the heels of calls by Namibians for a platform that would allow locals not only to actively participate in the exploitation of the country's mineral riches, but also derive benefits in terms of development.
But Katali was quick to point out that the new decision should not be misconstrued with a nationalization of mines.
"This is definitely not nationalization. All we want is more benefits for Namibians from the country's minerals," Katali said.
The announcement represents another radical policy shift at the Ministry of Mines and Energy since Katali took over 13 months ago.
Cabinet announced Epangelo would own licences and interested investors can partner the state-owned entity in mining or exploration joint ventures.
"Cabinet endorsed that the right to own licences for strategic minerals will only be issued to a state company," reads Friday's announcement.
"Cabinet also endorsed that after approval of the licence by the Minister, the state company may enter into joint ventures with interested parties for exploration and development."
(20min delay)