namibia - govt pockets all rights to mine u, page-8

Well after seeing Sierra Leone get ripped off blind in the rutile mining sting, you can't blame Namibia for wanting a safety net. Titanium Resources Group (a large holding company owned by Euro and US interests) owns Sierra Rutile Limited, and basically pretty much all the profits have gone out of Sierra Leone or to corrupt officials. You might say "how bad does this look" re Namibia, but it is probably a natural reaction to seeing others get sold down the river for a pittance by greedy Western companies. And after all, our mining tax idea is pretty much the same. I don't blame them for wanting to ensure that a certain % of the profits go back into their own country. The stuff only comes out of the ground once, and if you don't get good value for it, you don't exactly have the chance to revisit the scenario.

Yes it might lessen profit margins, but if you factor it in, then I don't see a problem. Buyer beware has always applied.