Picked up this article from the Namibia Economist. Interesting...

Picked up this article from the Namibia Economist. Interesting though that we have not got any asx announcements. Anyone else heard anything?

Rssing South jumps in value - shareholders fight
Written by David Adetona
FRIDAY, 08 JANUARY 2010 09:34
Two newly-listed NSX companies are at loggerheads over the intended sale of four Exclusive Prospecting Licenses (EPL), which amongst others, cover the newly-discovered highly-rated Rssing South uranium deposit.
At the end of October last year, Extract Resources and Kalahari Minerals, the first and Australian-controlled and listed company and the latter a London-listed company, both listed on the NSX on the same day.
Extract Resources is the parent company of two wholly-owned subsidiaries, Swakop Uranium (Pty) Ltd and Extract Resources (Namibia) (Pty) Ltd. These two subsidiaries are the owners of the four EPLs that are now the cause of the dispute between the shareholders.


Kalahari Minerals, a trading shell with no actual mining activity on the ground, owns a 40% stake in Extract Resources. After the discovery of the Rssing South deposit, Kalahari Minerals was unexpectedly propelled to centre stage as the value of the EPLs increased exponentially.Entered Rio Tinto plc through its local subsidiary Rssing Uranium Ltd. Rio Tinto does not undertake large-scale exploration itself but as the value of the Rssing South deposit became known, it immediately drew the attention of Rio Tinto. The newly-discovered deposit is also virtually on Rssing Uraniums doorstep making it a cheaper exercise to incorporate, than to commission a new mine from scratch. This placed a premium on the value of the four EPLs. This jump in the value of Extract Resources main Namibian assets gave rise to the discontent between the shareholders of Kalahari Minerals and those of Extract Resources.
Through its Australian subsidiary, Rio Tinto already had a 15% stake in Extract Resources therefore it came as no surprise when Rssing Uranium confirmed this week, Rio Tintos shareholding in Extract Resources has quietly been increased during December last year to 20.9%. Media reports during November last year speculated about a possible joint venture between Rssing Uranium Ltd and Extract Resources.
More weight was given to this scenario this week when Rssing Uraniums future plans unequivocally indicate the expectation of a dramatic increase in mining life and output volumes.
Jerome Mutumba, acting general manager Corporate Services at Rssing Uranium told the Economist this week that Rio Tintos Rssing Uranium Mine reached and exceeded its 2009 production target of 4031 tonnes of uranium oxide.
This was a significant achievement when compared with the 2008 record production of 4108 tonnes, which was the highest in the past 20 years.
Recently, the Rssing Board of Directors approved the mines Life-of -Mine operating plan, developed based on the latest exploration and drilling analysis data.
The plan extends the life of mine to 2023 with a significant increase in production from 2016. Already the company plans to increase its production to 4500 tonnes of uranium oxide from 2012, he added.
He further informed the Economist that despite foreseen challenges the expansion plan will enable the mine to significantly produce additional uranium tonnages, and continue to be a leading contributor to the Namibian economy, as the mine has been for the past 33 years. He said in 2008 the total wealth created was N$2,8 billion.
In the forthcoming months Rssing will continue with its pre-feasibility study to explore a heap leach facility to boost future output. A study on the project will be completed in the first quarter of 2010, he said.
Mutumba also said that the company followed a cautious approach in all aspects of cash flow management and especially capital spending, resulting in a cash preservation mode and in some instances slowing their development pace when the mine entered 2009 amidst the global financial crisis and throughout 2009 has seen negative impacts resulting from the crisis.
It is clear that the company would remain under pressure in terms of cash flow management in 2010, he said.

Namibia economist http://www.economist.com.na