[miningmx.com] — NAMIBIA’S government has awarded its state-owned mining company “exclusive exploration and mining’ rights to a host of strategic minerals, according to a news report.
The Namibian daily newspaper reported on Thursday the country’s cabinet has declared uranium, copper, gold, zinc and coal as strategic minerals to allow the state-owned Epangelo Mining Company sole exploration and mining rights, quoting Mines and Energy Minister Isak Katali.
Katali said Namibia’s 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% 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, read the report.
The country’s latest budget has allocated N$5 million to the company.
Katali also said the government is fully aware that black economic empowerment (BEE) is abused by some to make “phenomenal amounts’ of money, according to the report.
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.
