Namibia targets stakes in resource companies, miners' shares fall (updated)

Bannerman Energy

30/05/2023 09:34

(Adds details, background)
       MELBOURNE, May 30 (Reuters) - Namibia is considering
taking minority stakes in mining and petroleum producers to reap
more value from its mineral wealth, the African country's mining
minister told lawmakers, weighing on shares of mostly
Australia-listed miners on Tuesday.
    Namibia is one of the biggest uranium producers in the
world. It is also a major diamond producer and has significant
hard rock lithium deposits.
    "We are making a case that local ownership must start with
the state, which holds ownership of our natural resources,"
Minister of Mines and Energy Tom Alweendo told lawmakers at a
parliamentary workshop on Monday. 
    "The proposed state ownership should take the form where the
state owns a minimum equity percentage in all mining companies
and petroleum production, for which it does not have to pay." 
    The Namibian mines ministry did not respond to requests for
further details. 
    Shares in Australia's Paladin Energy Ltd  PDN.AX  entered a
trading halt on Tuesday after tumbling as much as 24%. The
company produces uranium in Namibia. 
    Bannerman Energy  BMN.AX , which is developing the Etango
Uranium project, fell 7.4% to a one-month low, while Deep Yellow
 DYL.AX  slumped as much as 13.4% in its biggest intraday
percentage drop since May 9. Deep Yellow recently completed a
definitive feasibility study at its Tumas uranium project.
    It is unclear what percentage the country will seek in
resource projects, but in March Alweendo told Namibia's
parliament that the government would approach the matter with
"sober mindedness". 
    "We need to be mindful of the fact that there is a level
above which no investor will invest – a situation we clearly do
not want to find ourselves in," he said back then. 
    Last year, TotalEnergies  TTEF.PA  and Shell  SHEL.L 
announced offshore oil and gas discoveries in Namibia. 
    

 (Reporting by Melanie Burton in Melbourne, Nyasha Nyaungwa in
Windhoek and Nelson Banya in Harare; Editing by Tom Hogue and
Sriraj Kalluvila)
 ((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals;
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melanie.burton.thomsonreuters.com@reuters.net))