As has been posted on other Namibian Uranium company forums,...

As has been posted on other Namibian Uranium company forums, this may be of concern going forward and may alter the opinion of Namibia being a country of low sovereign risk;

Below is a recent report from the last 5 days followed by an earlier newspaper article on Epangelo and EXT from Feb this year.

Cabinet has declared uranium, copper, gold, zinc and coal as strategic minerals to allow the State-owned Epangelo Mining Company "exclusive exploration and mining" rights, Mines and Energy Minister Isak Katali told Parliament yesterday.

Katali said Cabinet recently approved a submission in this regard "so that the Namibian citizen can fully reap the benefits arising from the rich endowment of our mineral resources".

Mining last year contributed about 15 per cent to the country's gross domestic product and its export earnings were more than half Namibia's total export revenue. Namibia recently retained its position as the fourth biggest uranium producer in the world.

Katali said his Ministry's priority this year will be to finalise the Minerals Bill and minerals policy to allow Epangelo "to fully participate in the exploration and mineral development" in the country.

The 2011-12 Budget has allocated N$5 million to the company.

Katali also said Government is fully aware that black economic empowerment (BEE) is abused by some to make "phenomenal amounts" of money.

He said some BEE companies are "fronting", a practice where foreign companies use local empowerment companies to clinch deals. The Minister said he also knows of BEE licensees "selling out" exploration licences as soon as they are granted them.

Furthermore, Katali said the Ministry is mindful of transactions of mineral resources involving "phenomenal amounts being concluded outside the borders of Namibia, without ministerial approval, which only benefits a few with no tangible financial benefits accruing to the state revenue coffers".

The Ministry has consulted with those involved in the sector, as well as with the Chamber of Mines and as a result, will design policies to ensure that Government doesn't lose out in future, Katali said.

The Minister also told Parliament that as soon as Government's Transformational Economic and Social Empowerment Framework (Tesef) is finalised, BEE charters for the electricity, petroleum and mining sectors will be implemented to ensure that previously disadvantaged Namibians benefit.

"I am happy to announce that the mining charter is at an advanced stage of completion and will be gazetted as soon as all the steps are conducted," he said.



Epangelo seeks equity partners - by Desie Heita

24 Febuary 2011

WINDHOEK - Government's newest state-owned mining company, Epangelo Mining, hopes to seal significant equity participation agreements with undisclosed mining companies by June this year.

Epangelo Mining Chairperson Advocate Mandi Samson told New Era that discussions with French uranium mining giant Areva are "at an advanced stage," and the two parties are "looking at tying up loose ends", while discussions with exploration outfit Extract Resources are ongoing.
Besides these, the state-owned mining entity is involved in discussions with other mining companies.

Once finalised, these agreements are not only going to be significant in terms of state ownership, but they would assure the industry of Epangelo Mining's seriousness and responsible manner in which it intends to conduct business in the sector.

Market analysts have expressed concern over Epangelo Mining, saying the company�s silence, coupled with Government�s long standing moratorium on specific mineral licences, has investors uncertain about the country's mining sector.

However, Advocate Samson shrugs at such remarks saying Government did not wake up one day with the decision to establish a state-mining company without consultation and that the state-owned entity on numerous occasions shared its vision with the industry.

"If they are scared of a little competition, that is their problem. We are interested in the bigger picture," says Advocate Samson.
E
pangelo Mining would focus on strategic minerals and Advocate Samson says market analysts "should not think this is going to be a Mickey Mouse business, where Government looks at the crumbs while foreign mining companies get the cream".

Inaugurated in 2009, the state-owned mining company would look at strategic minerals such as diamonds, uranium and copper.

Nevertheless, its mandate stretches beyond the confines of strategic minerals and involves interests in geophysical exploration of base metals, mining investment as well as beneficiation of mineral products.

Advocate Samson says there is need for government to retain ownership of the geo-physic data, "[which is] generated, financed by the state but for which mining companies pay little, make worthwhile [mineral] recoveries" and plough back an insignificant value into the economy.

In defining value ploughed back into the economy, Advocate Samson says that should not include the statutory payments to the treasury, such as taxes.

To date, it is only the French mining company Areva and mining exploration company Extract Resources who have explicitly indicated interest to do business with Epangelo Mining.

Areva is developing the Trekkopje uranium deposits northeast of Swakopmund, while Extract Resources is developing a uranium mine south of the current R�ssing Uranium.

On negotiations with Areva Adv Samson says: "�We are having a final look at the draft [agreement document]. We have had positive interact, open discussions with them, they are also very welcoming. We looked at their desalination. It is going very positively, it is a matter of tying up the loose end on that one."

Extract Resources discussions are also ongoing, and Advocate Samson says the deposits under exploration "have key importance" to Epangelo Mining.
"We cannot talk about uranium and not mention R�ssing South. Therefore, it is not a negligible deposit," says Advocate Samson.

Epangelo Mining is nevertheless cautious in dealing with the industry, with Advocate Samson highlighting the "virtue [of being] a law-abiding country" hence the caution in dealing with licence owners.

She says the company has a responsibility to play the game fairly.

Further, the market is watching to see how Namibia handles the huge responsibility of turning government into an active participant within the mining sector, while Namibians have genuine expectations of economic change.

Handling the industry in an insensitive manner would "not be setting good precedence on the back of [such] genuine expectations".

Hence, with so much time and resources invested eventually there should come a positive change.

"We cannot afford to accept the crumbs. We cannot afford to have narrow minded tunnel vision, when it comes to the potential gains from these mining company. We know the states are willing to set it up, we understand that there is a lot that the shareholder have to put in to make it work. We are adamant and committed to ensure that what comes out would have to commensurate with efforts and investments," says Advocate Samson.

Making it all happen, says the advocate, depends on Epangelo Mining's "ability to follow through, not allowing ourselves to be sidelined by those who may want to use us just for association and hoping that on behalf of state, we satisfied with very little. As a board, we are very clear - that is not what the shareholder wants. Government wants to be involved in its own mining industry."