This article from The Australian suggests that pending mining...

This article from The Australian suggests that pending mining licences will also not be affected. If true, this is good news for Extract. It also suggests Epangalo will essentially start with greenfield sites.


http://www.theaustralian.com.au/business/extract-paladin-stocks-fall-in-muddle-over-namibias-uranium-plans/story-e6frg8zx-1226047203062

Extract, Paladin stocks fall in muddle over Namibia's uranium plans

* Sarah-Jane Tasker
* From: The Australian
* April 30, 2011 12:00AM

SHARES in Namibia-focused uranium hopefuls Extract Resources and Paladin Energy continued to fall yesterday despite hosing down of speculation that the government would give mining projects to local outfits.

Both Australian-listed companies closed lower yesterday, with Extract slumping 11.76 per cent to $6.08, after losing 10 per cent on Thursday.

Paladin dropped 4.35 per cent to $3.30, after losing 3 per cent on Thursday. Namibian Minister of Mines and Energy Isak Katali told parliament last week the cabinet had approved proposals to give the state exclusive exploration and mining rights over uranium, copper, gold, zinc and coal as strategic minerals.

In response to a speeding ticket from the Australian Securities Exchange yesterday, Extract said it was seeking clarity from the Namibian government.

"In the meantime, the company believes that these statements have been taken out of context and reiterates that the government of Namibia continues to be supportive of Extract and the Husab uranium project," Extract said.

Mr Katali was scheduled to clarify the government's plans late yesterday but it is understood current or pending mining licences would not be affected.

Extract's Husab project adjoins Rio Tinto's Rossing mine, and junior Paladin Energy's flagship project is close by.

Paladin Energy said it had already sought clarification and following discussions with the government, it understood the equity position and operations of its Langer Heinrich operation remained unaffected. Managing director John Borshoff said yesterday that the government's moves would not come as a surprise to the industry, as it was widely known Namibia was looking to create -- for the country -- a mining house, similar to Canada's Cameco.

"Essentially they want to start at the greenfields sites," Mr Borshoff said.

The government will use state-owned mining company Epangelo Mining to build its interests in mining.

This could include joint-venture operations.