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Windhoek - Namibian state-owned mining company Epangelo
Mining will not commit itself to a fixed share in future joint ventures with
mining firms, Managing Director Eliphas Hawala told Reuters in an interview on
Wednesday.
Mining Minister Isak Katali made international headlines
last month when he said certain minerals, including uranium, would be declared
strategic and their future mining would fall under Epangelo.
Any company wishing to mine for those minerals would need to enter into a joint venture with the state-owned firm.
The minister has since dispelled fears that the move would
be tantamount to nationaliation, saying that the government would not take
rights away from existing license holders.
The industry has speculated that Epangelo will take a minor 10% to 15% share in new operations, but Hawala said that would be a minimum.
“For a free carried interest share, 10% to 20% would be at
the lower end,” Hawala told Reuters on the sidelines of a mining conference in
Windhoek.
“Ideally, when you mine you would like to have 100%
ownership, but of course that depends on the capital that you have. So we have
to come up with a number that fits the project, but we want to dilute the share
as little as possible.”
Epangelo, which looks at mining on its own as well as
establishing joint ventures, has a working capital of $5m Namibian
dollars.
“It is possible that we hit the jackpot, that a deposit is not that costly to mine, with high grade minerals close to the surface. So if you go out there stating beforehand you want 15% you put yourself at a disadvantage,” Hawala said.
