Govt signs up with Russian mine venture - by Desie Heita
24 May 2010
WINDHOEK The Government has secured solid ownership in the yet-to-come on stream uranium mine south of Rssing by teaming up with Russian state company State Atomic Energy Corporation (Rosatom).
President Hifikepunye Pohamba and Russian President Dmitry Medvedev signed an agreement to this effect in Moscow on May 20 with a memorandum on cooperation in exploration.
The agreement commits an investment worth more than N$8 billion in uranium exploration and uranium products.
Russia needs uranium to feed a yet-to-be constructed Turkish nuclear power station.
"State corporation Rosatom keeps on working on concluding an intergovernmental agreement on cooperation in peaceful nuclear energy and sent an application on developing Rssing South uranium deposit," reads a statement from the Russian government.
President Pohamba confirmed the agreement upon his arrival in the country from Moscow on Friday evening [May 21].
"During our discussions, we signed four agreements one is a memorandum of understanding. The memorandum of understanding is on mineral exploration and mining," said Pohamba.
The other three agreements are on fisheries, tourism and education, the latter specifically in the fields of science and technology.
Australian foreign company, Extract Resources, is currently developing the Husab uranium project which consists of the two uranium deposits Rssing South and Ida Dome.
Government, through Epangelo Mining, is set to have an ownership in the investments and has clearly stated its preparedness to Kalahari Minerals who are the main shareholders in Extract Resources, with 40 percent shareholding.
Rio Tinto, owns Rssing uranium mine, holds a 15 percent shareholding in the new project mine.
Latest market updates from Kalahari Minerals say ongoing drilling and exploration activities on site continue to produce positive results.
The area is said to hold larger and higher grade deposits of uranium than the deposits at Rssing, which would make the mine the largest uranium mine in Namibia.
The agreement between Namibia and Russia, according to the Russian statement, "lays out opportunities for joint ventures in exploration, development and processing of uranium ore, as well as uranium enrichment." The memorandum is effective for five years, with option for renewal.
The chief executive officer of Rosatom, Sergei Kiriyenko, says they would invest US$1 billion (more than N$8 billion) in Namibia through the agreement. "We are ready to guarantee investments," Kiriyenko says.
The money would go into development of uranium deposits, production and training in uranium mining.
Rosatom and the Namibian Ministry of Mines will create a joint task group that would consist of Russia's Atomredmetzoloto and Epangelo Mining.
Russia is further looking at getting involved in Namibia's hydroelectric power stations, as well as the railway sector.
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