Proposed Empowerment Bill Crush Investor Confidence
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VOLUME 5: ISSUE 6 N$ 26.50 JANUARY - MARCH 2017 Proposed empowerment bill crush investor confidence Diamond production drops Built to last, HygroSmart Scale up energy infrastruc- at Namdeb Holdings HS3 sensor now on offer ture development - AU 10 22 28 9772308006008 www.namibianminingnews.com Namibian Mining Review | January - March 2017 1 VOLUME 5: ISSUE 6 N$ 26.50 JANUARY - MARCH 2017 Proposed empowerment bill crush investor confidence Andrew Marimwidze: Editor New mine in Namibia to Tawana buys Namibian lithi- Botswana government eyes start mining Uranium um project own copper smelter The Namibian Mining Magazine is a quarterly professional mining journal 12 14 26 for the Namibian mining and quarrying industry. With a decent print run 9772308006008 of 3850 copies per issue and a magnificent online presence, this maga- www.namibianminingnews.com Namibian Mining Review | January - March 2017 1 zine remains the preferred source of Namibian mining news both locally and internationally Editor [email protected] Contents Editorial Contributor(s) Gosego Galetshetse l [email protected] EDITORIAL NOTE BA –Humanities (UB, Botswana) Let us attract FDI with investor friendly legislation : ................. 4 BA –Social Sciences (UB, Botswana) NEWS BRIEFS Graphics and Productions Merlin Wilson (Pty) Ltd Dark cloud continue to hang over Marenica : ................. 6 Rekai Musari Mutisi– Layout Deep Yellow’s EPLs gets an extension : ................. 6 Japan, Namibia continue to cement relationship : ................. 6 Media Consultant Mothballed Otjihase, Matchless to open soon : ................. 6 Melusi .S. Maseko MUN fight Skorpion’s outsourcing efforts : ................. 6 Email: [email protected] Weatherly remains optimistic despite challenges : ................. 7 Advertisement Sales Nkosana Mkhize: [email protected] COVER STORY Eugene Dube: [email protected] Proposed empowerment bill crush investor confidence: ................. 8 Happiness Mpofu: [email protected] Similo Ngwenya: [email protected] Percy Dube: [email protected] GENERAL NEWS Diamond production drops at Namdeb Holdings : ................. 10 Information, Database, Archive and Etango Mine’s DFS gets an update : ................. 11 Distribution Management Husab uranium mine set for operations : ................. 12 Subscription and Sales Administrator Gold production rise at Otjikoto Mine : ................. 13 Hazel Mukwamba l Elise Lusungo: [email protected] Indaba remains pivotal to Africa’s aspirations : ................. 14 JV explore portion of Karibib’s lithium prospects : ................. 15 Published By: Mining jamboree attracts more exhibitors : ................. 16 Meline Media. Teck Resources sells stake in Haib Minerals : ................. 17 Wesco Engineering appointed Rio-Carb agent : ................. 18 Physical Address: Namibian Mining Review Uranium moratorium cancelled : ................. 18 15 Veronica Street Ludwigsdorf, Windhoek Built to last, HygroSmart HS3 sensor now on offer : ................. 22 Industry Trends & Technologies : ................. 23 Postal Address: P.O Box 136, Windhoek, Namibia IIDGR unveils new melee screening instrument : ................. 23 Tel: +264 81 265 2004 l Fax: +264 81 265 2005 l International News Email: [email protected] Website: www.namibianminingnews.com BD raises funds for Botswana/SA projects : ................. 24 DE BEERS profit jumps from 2015 slump : ................. 26 Resource sector ‘uneasy’ with Trump administration : ................. 27 Scale up energy infrastructure development - AU : ................. 28 Swedish solutions provider, Atlas Copco splits : ................. 29 www.namibianminingnews.com Namibian Mining Review | January - March 2017 3 EDITORIAL NOTE Let us attract FDI with investor friendly legislation At Namibian Mining Magazine we say: let the stakeholders find way of making the new bill favorable to both the investors and the country at large. s the New Year begins, the country’s take away the magnet to lure investors. Let the benefits ooze down, like honey from a extractive industry is also scouting for healthy bee hive boosting revenues for others the much sort after foreign direct in- Though mining industry is a high risk business, sectors and create employment. vestment (FDI) for fresh and existing putting in place negatively perceived legislation Aprojects. makes it hard for the country to lure the ‘desired To hear that the country’s mining industry pro- investors’. vides jobs to about 9000 permanent employees With sustainable investors flow, the country can of which 95% are Namibians and only 5% are fully exploit the natural resources prop up the At Namibian Mining Magazine we say: let the expatriates, signals the great potential the sector economy and improve the society at large. stakeholders find way of making the new bill fa- has. vorable to both the investors and the country at However, news that the country could slide into large. The country is endowed with so much natural re- a high risk zone for investors following govern- source; our legislation should much more reflect ment announcement to enact an empowerment Soon the Namibia Mining Expo and Conference the country is yearning for investment. bill should be a concern for all. 2017, the country’s annual minerals resource sec- tor event will attract various stakeholders to our As we navigate through 2017, we hope to hear The New Equitable Economic Empowerment shore, let them not find reason to shun us – we positive news, mothballed mines opening, and Framework (NEEEF) Bill already raising eyebrows should be a mining address of choice for all. mines employing more people, opposed to re- in the mining community has potential to partial trenchment intentions. Let it be a fruitful year! 4 Namibian Mining Review | January - March 2017 www.namibianminingnews.com NEWS BRIEFS Dark cloud continue to “The ground is highly prospective for uranium in The company owns two established under- hang over Marenica both paleo-channel calcrete associated Langer ground copper mines - Otjihase and Matchless Heinrich type targets and basement alaskite and a concentrator adjacent to Namibia’s capital, arenica Energy has posted poor re- associated Rössing or Husab type targets,” said Windhoek. sults for its half year period ending John Borshoff, Managing Director of DYL. December 2016. However, production at Otjihase and Matchless He said DYL is confident that with ongoing ex- was suspended, owing to the marked decline in MThe results posted on the bourse recently indi- penditure, the EPLs will be favourably considered global copper prices in September 2015. cate the company has net deficiency in assets of for a further 2 years when the time comes for $1,976,621 and incurred a loss of $844,533 and an application for an extension to be submitted. The 800 000 t/y concentrator, which is on care net operating cash outflow of $594,731 for the and maintenance, produces high-quality copper six month period. concentrate sought after for blending. Despite the poor results, the Marenica Energy re- Japan, Namibia continue The mines and concentrator are being main- tained for immediate restart, with underground mains positive and says is ready to continue and to cement relationship meet its debts and future commitments, ‘as and workings dewatered and faces accessible. when they fall due’. he Japan Oil, Gas and Metals National Weatherly is evaluating the potential opportunity Corporation (JOGMEC) continue to pro- The company attributes the resilience to the to produce 10 000 t/y to 12 000 t/y at C1 costs mote mutual relationship in developing ability to raise sufficient working capital to ensure of $2/lb for the next ten years and capex of un- Namibia’s natural resources. continued implementation of the company’s der $10-million, and highlights that Otjihase and business plan, as occurred in the past. T Matchless represent one of the lowest capital in- Obeth Kandjoze, Minister of Mines and Energy tensity copper projects in the world. (MME) applauded the continuous collaboration. In addition, the commercial viability of the com- pany’s uranium project pumps hope into the di- An offtake agreement is in place, whereby con- “I should point out that Japan played a significant rectors’ veins coupled with engraved commercial centrate is trucked to the Walvis Bay port and role in essentially keeping Rossing alive during viability of the company’s U-pgrade™ process. sold to agricultural goods company Louis Drey- the nineties by buying uranium from the com- fus at the point of export. pany at much higher prices than any other buyer U-pgrade™ process is a major breakthrough for was willing to,” Kandjoze said. processing surficial uranium deposits and set to The company’s third and final project Tschudi unlock the potential of major global surficial ura- open pit copper mine, near the town of Tsumeb, According to the minister, the two parties are nium deposits. ‘a derisked producing asset with exception- convinced that cooperation in the field of mineral al nearby infrastructure’, with the capacity to resources will contribute to the establishment of Apart from the internal support system, the produce 17 000 t/y of London Metal Exchange strong relations between the two countries. company also gains strength from continued Grade A cathode for the next nine years at a C1 support from the convertible note holder and cost of $1.75/lb,