Extract Resources is a uranium explorer hoping to conduct business in Namibia. The company has said that it will be seeking clarification from the Namibian government on comments that were made by it regarding plans to assign almost all mining and exploration rights to the state owned mining company.
The statement said that the government proposed to give exclusive exploration and mining rights of uranium, copper, gold, zinc, and coal to state run companies. Namibia's Minister of Mines and Energy Isak Katali said the cabinet budgeted 5 million Namibian dollars, or $742,506, for the state-owned Epangelo Mining Co. However the Australian listed company felt that the comments were taken out of context as it had the full support and cooperation of the government.
President Hifikepunye Pohamba of Namibia said in his State of the Nation speech on Wednesday that legislation will be introduced to ensure that strategic minerals are exploited with the participation of the public sector. This is an effort to try and reap more rewards from the mining industry in the nation and have a larger controlling stake over the resources found therein.
The Mining companies currently operating in Namibia said that they were not worried about the legislation at present as they have the support of the government. Although the shares in Extract Resources dropped after the president made his speech. The new mining legislation is likely to be introduced later this year. Many African nations are contemplating similar actions to help gain more from the mineral rich resources that they have.