Africa-Press – Namibia. MINISTER of mines and energy Tom Alweendo says the government is open to considering upping its share ownership in the mining and energy sector.
“We must decide how much is enough when it comes to share ownership. Is it 10%, is it 20 %? And some are even saying we must consider 50%, but I believe we need smart negotiators and to avoid cutting ourselves off from the investment,” he told Desert Radio yesterday.
Alweendo said there is a need for all Namibians to benefit from the country’s mineral resources.
He said this entails that all exploration licences are given to investors with the ability to mine resources.
“I’m not convinced to say that the way to get Namibians involved is to give them exploration rights – even when I know very well they cannot do that,” he said.
The Ministry of Mines and Energy last month sent out a notice for Namibians who applied for Exclusive Prospecting Licences (EPLs) to prove they have the financial means to do exploration.
This applied to all EPL applicants of 2022 of which the licences would be granted this year.
Alweendo initiated this in 2018 to attract more investors and to grow the mining sector.
He said the ministry has experienced that many applicants who are awarded EPLs but are not in a financial position to do any exploration have sold their licences.
The minister does not approve of this practice.
Last year a locally owned company sold its EPL in an area in which lithium deposits were found in the Erongo region and raked in N$50 million.
The Namibian last year reported that a pensioner sold his EPL to Osino Gold for more than N$1 million.
Awarding licences to applicants with no means would create a situation where licences are being auctioned off to the highest bidder, benefitting a few individuals only, and not the state, Alweendo said.
“That’s not empowering,” he said.
Because no revenue is made during exploration phases, Alweendo said the ministry’s current opinion is that Namibians should rather be involved at mining level where money can be made.
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