Namibia’s miners say unaware of Govt. plans to take minority interest in assets

Andrada's Uis mine, Namibia

MINERS operating in Namibia said they were unaware of plans by the country’s government to take a free carry stake in their operations.

This was after Namibia’s mines and energy minister Tom Alweendo was quoted by Bloomberg News on Tuesday as saying the government was “making a case” for local ownership.

“The proposed state ownership should take the form where the state owns a minimum equity percentage in all mining companies and petroleum production, for which it does not have to pay,” he said in the article.

Paladin Energy, the shares of which fell about a fifth on Tuesday, said today that despite “regular ongoing dialogue … it is not aware of any imminent proposed Namibian legislative changes that would affect the ownership of the Langer Heinrich mine”. Paladin holds a 75% stake in the operation which is due to reopen in the first quarter of next year.

A spokesperson for Andrada Mining, which operates the Uis tin mine in Namibia, said it was unaware of any developments in terms of government ownership. It declined to comment further.

Paladin shares were unchanged today after falling to 54 Australian cents per share, a decline of about 18% in the last five days.

Paladin would spend $117m making Langer Heinrich production ready. The mine will operate for 17 years, Paladin said.

Its reopening builds Namibia’s position as a significant part of the uranium market. It currently produces uranium from Rossing Uranium Mine and Husab Uranium controlled by Chinese investors, but there are more on the radar.