Plan to give Namibia state mine rights worries sector
Wed Apr 27, 2011 4:52pm GMT
The Namibian government's plans for legislation that will see all mining and exploration rights go to a state-owned company will hurt the vital sector, industry officials said on Wednesday.
Mining Minister Isak Katali told parliament last week the cabinet had approved proposals to declare uranium, copper, gold, zinc and coal strategic minerals and give the state exclusive exploration and mining rights over them.
"We are certainly concerned," Chamber of Mines General Manager Veston Malango said on Wednesday.
"We have had a meeting with the minister this morning seeking clarification and he asked us to put our concerns in writing," he added, saying Katali would address these concerns at a press conference on Friday.
Namibia has deposits of uranium, while foreign firms are exploring for gold, lead, zinc and iron ore.
It is one of the world's largest producers of diamonds, which are not included in the new proposals.
The state-owned company, Epangelo, was formed in 2009 and received a 5 million Namibian dollars ($752,400) allocation in the national budget last month.
Industry officials said it was not clear whether the state entity would take control of all mining operations under the legislation, but Epangelo CEO Eliphas Hawala told Reuters:
"All mining rights in Namibia are vested in the state, including those currently being mined by private companies."
"The issue is how these rights are controlled through licences. The timeline involved is the prerogative of the state, also depending on consultations with all relevant stakeholders," he added.
He said Epangelo planned to enter into joint ventures with parties interested in exploration and mining
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)