minister rejects nationalisation charge

Newspaper report of a clarifying statement by Katali, Namibian Minister for Mines:

May 03, 2011 09:09

THE nationalisation of the mining sector by the Namibian government is out of the question, but the state-owned Epangelo Mining Company will be run in terms of a joint public-private venture as provided for in the Constitution. Epangelo is eyeing the Haib deposit in the South and the Minister would like the State to get involved in it. Mines and Energy Minister Isak Katali confirmed that Cabinet endorsed that uranium, gold, copper, coal, diamonds and rare earth metals are declared Strategic Minerals in the interest of Namibia?s mineral resources and national development towards achieving Vision 2030.

The Cabinet also approved that the right to own licenses for ?strategic minerals? will only be issued to State companies and that after approval of the license by the Minister, the State companies may enter into joint ventures with interested parties for exploration and development.

?However, nobody talked about nationalisation and there are many other minerals in Namibia that do not form part of the ?strategic minerals?. This is a policy practiced in many countries and it will not affect the existing mining licences as well as the existing exclusive prospecting licences or the current mineral retention licences. It is a matter that all, including the Government, have to play a role in the mining sector,? said Katali. In his submission to Cabinet, Katali explained that over the years the Ministry has gathered a lot of geological information, most of which has been sold to the private sector for a minimal fee.

?The intention has been to attract investment, particularly for exploration activities, which is a very high risk business. Namibia has now established herself as a preferred destination for investment in exploration and mining.? Katali said since Independence, the mineral exploration sector has experienced a relatively high investment in almost all groups of minerals and continues to do so.

The diamond, uranium, gold and copper sectors, in particular, stand out as areas of particular interest and high investment, especially by foreign companies, adding that technically and by legislation, coal is designated as an energy mineral. ?Considering that Southern Africa, and indeed the whole world, are vying to maintain reliable sources of energy for their national developments, it is critical that coal is accorded that strategic recognition. In particular, the coal deposit in the Aranos basin is of interest because substantial technical information already exists. Other minerals such as copper, lead and zinc, marble and granites have also had their fair share of foreign and local interest.?

He said apart from the Weatherly mines where known copper occurrence is apparent and has been exploited for decades, the Haib deposit in the South is also considerable and one that the Minister would like the State to get involved in. ?The current license holders have had exploration rights there for a very long time and little progress has been achieved over the years.

Other projects will be identified for potential State company participation and submissions will be made to that effect,? Katali said. Other minerals that have not been declared ?strategic? are oil, gas, manganese, fluorspar, tin, dolomite, granite, sodalite and all semi-precious stones.

---------------------

Only mentions Weatherly mines and Haib deposit as possible targets for Epangelo - not Husab.