Namibia Stands Firm: No Grabs on Existing Resource Firms

Mouad Boudina
Mouad Boudina
2 Min Read
Namibia

The Ministry of Mines and Energy has affirmed that Namibia does not currently entertain the idea of acquiring minority stakes in existing mining and petroleum companies operating within the country. This statement serves to clarify any misinterpretation stemming from the mining minister’s previous remarks.

Minister of Mines and Energy, Tom Alweendo, expressed during a recent session with lawmakers on Monday that Namibia aims to optimize the benefits derived from its mineral wealth by exploring potential opportunities to acquire stakes in resource companies.

In an official statement, the ministry affirmed that the government has no intention of expropriating any stakes from current holders of mineral or petroleum licenses. Furthermore, the government remains steadfast in its commitment to uphold the integrity of contracts and honor the sanctity of existing agreements.

While clarifying its position, the ministry did not categorically dismiss the possibility of the government considering minority stakes in the future when issuing licenses to resource companies.

According to the ministry, as the supreme owner of natural resources, the state reserves the right to request a minimum stake through public enterprises in any forthcoming mineral or petroleum licenses that may be granted in the future. This approach ensures the government’s active involvement and oversight in the management of these valuable resources.

Namibia holds a prominent position as one of the world’s largest producers of uranium. Additionally, it plays a significant role in the diamond industry, being a major producer in that sector. Furthermore, Namibia possesses substantial reserves of hard rock lithium, further contributing to its significance as a key player in the global mineral market.

Mouad Boudina

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