The Namibian government owned-Epangelo Mining Company and Swakop Uranium today finalised an agreement for the subscription of a 10% stake in Husab Project in a deal valued at R1,882b.
At the signing ceremony, Deputy Chairman of Swakop Uranium, Zheng Keping said approximately 800 000 metres of drilling has been undertaken over a period of three years to improve the resource.
He said the Husab Project has been brought to this stage of development in record time by a dedicated and professional management team, engineers and staff.
“We are proud to confirm that more than R1b has already been spent to get the project to its current state. Our budgets estimate a further R20b will be required to bring the project to fruition.”
Zheng added that this development has also been fully supported by the existence of an enabling investment environment which has been well managed by the Namibian Government.
“The Namibian Government is regarded internationally as responsible, stable and predictable where sound infrastructure supports the development of a project of this magnitude,” he said.
Managing Director of Epangelo Mining Company, Eliphas Hawala, said: “We are confident that we will be able to build on the spirit of the negotiations to ensure that the Husab Mine also looks at other social and economic aspects such as local procurement for small and medium enterprises, local recruitment of senior management, involvement in social responsibility programmes, training and education and so forth.”
Hawala added that, “The acquisition of a stake in Swakop Uranium by Epangelo Mining Company marks a very significant chapter in the Namibian mining history in general and also a huge milestone for Epangelo Mining Company in particular”.
He added that this process is a step closer to fulfil Epangelo Mining Company’s objective which is to ensure state participation in the mineral resources development, mining, beneficiation and creation of mining related employment opportunities for Namibians. By concluding this acquisition, Epangelo Mining Company has secured a non-dilutable, fully funded and ring-fenced equity participation in Swakop Uranium including board participation and support in other operational aspects.