Govt pockets all rights to mine uranium (with my comments in italics)
(the Namibian) CABINET has declared uranium, copper, gold, zinc and coal as strategic minerals to allow the State-owned Epangelo Mining Company “exclusive exploration and mining” rights, Mines and Energy Minister Isak Katali told Parliament yesterday.
Katali said 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”.
Oh - but isn't this what we are doing (SA that is)
Mining last year contributed about 15 per cent 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.
Yes - this is exactly what we are doing. Oh well
Katali also said Government is fully aware that black economic empowerment (BEE) is abused by some to make “phenomenal amounts” of money.
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.
This type of legislating is fundamentally anti-capitalist (which is not a good thing). People invest for a return, get the return and then move on. Legislating for black people to retain their ownership is counter-productive. PLEASE don't make the same mistakes South African has made - you really don't have to!!!!!!!
The Minister also told Parliament that as soon as Government’s Transformational Economic and Social Empowerment Framework (Tesef) is finalised, BEE charters for the electricity, petroleum and mining sectors will be implemented to ensure that previously disadvantaged Namibians benefit.
We are now seeing the shape that TESEF is going to take. Somewhat similar to ours with industry charters (they have an approved financial services charter).
“I am happy to announce that the mining charter is at an advanced stage of completion and will be gazetted as soon as all the steps are conducted,” he said.
Let me guess, it's going to be like SA's - you know legislated and not a voluntary thing. SA's is a mess and will not achieve the targets that it has set because it's not reasonable. As David Crosby once said - don't do it man.
As I have said before, if a country nationalises mining with fair compensation to owners, it makes the owners happy. They will buy back their mines at one tenth of the price in 20 years time. I have never seen a nationalisation business plan. e.g. I am going to spend x to get a return of y; I am going to ensure I have all the skills I need by doing abc, etc, etc. Sad.
Posted by: Richard Ferrer | April 29, 2011 at 02:43 PM