[miningmx.com] — PLANS by the Namibian government for legislation that would assign almost all mining and exploration rights 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 that uranium, copper, gold, zinc and coal are strategic minerals, and which 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 said, adding Katali would address these concerns at a news conference on Friday.
In a broad-based state of the nation speech delivered to parliament on Wednesday, President Hifikepunye Pohamba said the law was meant “to ensure that strategic minerals are exploited with the participation of the public sector”.
“It is for this reason that Epangelo Mining company was established as a vehicle for public ownership in the mining sector. I appeal to … parliament to speedily pass the envisaged legislation, once it is tabled later this year,” Pohamba said.
Epangelo CEO Eliphas Hawala told Reuters the state company planned to enter into joint ventures with parties interested in exploration and mining.
Namibia has deposits of uranium, and 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.
Epangelo was formed in 2009 and received a N$5m 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.
“All mining rights in Namibia are vested in the state, including those currently being mined by private companies,” Hawala said.
“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 said.
