Namibia rules out mine nationalisation: President's office Devon...

Namibia rules out mine nationalisation: President's office Devon Maylie From: Dow Jones Newswires May 04, 2011 6:18AM

NEW mining legislation in Namibia won't affect existing licences and won't be a move towards nationalisation, a spokesman for the President's office said today.
S
hares in mining companies operating in Namibia took a hit last week after Mines and Energy Minister Isak Katali said uranium, copper, gold, zinc and coal have been declared strategic minerals to allow for exclusive exploration and mining of them by state-owned Epangelo Mining.

Mr Katali's comments were followed by President Hifikepunye Pohamba's State of the Nation speech where he said new mining legislation would be introduced later in the year to ensure the exploration and mining of the above minerals is carried out with the participation of the public sector.

"Held rights won't be affected," a spokesman for the president said. "It doesn't mean the state-owned entity will have a controlling stake...it's not a form of nationalisation."

The president's office said the changes are being led by the mining ministry and that legislation will be presented to parliament later in the year. The mining ministry is due to hold a media conference to clarify remarks in the coming week.

"We are allowing for public participation to ensure benefits are accrued by the government," the spokesman said. "The public entity must have a stake in future prospects. Existing allocated rights are not affected."

Australian-listed miners Paladin Energy and Extract Resources said on Friday that the government continues to be supportive of their projects.

The Chamber of Mines in Namibia said Minister Katali told the organisation that changes won't affect existing mine licences.

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POINTS TO NOTE:-

The Chamber of Mines in Namibia said Minister Katali told the organisation that changes won't affect existing mine licences.

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"Held rights won't be affected," a spokesman for the president said. "It doesn't mean the state-owned entity will have a controlling stake...it's not a form of nationalisation."