Katti proposes youth buy IDC's 10.2% stake in Rössing

Businessman Knowledge Katti has proposed that Namibian youth and communities acquire a 10.2% stake in Rössing Uranium, which South Africa’s Industrial Development Corporation (IDC) intends to divest.

The IDC has been a shareholder in Rössing Uranium since the 1970s, when the mine was established and began production in 1976.

In January, the IDC opened a formal disposal process, inviting expressions of interest from potential buyers, after stating it had reached the end of its investment horizon for the project.

China National Uranium Corporation Limited (CNUC) holds about 68.6% of the company after acquiring Rio Tinto’s controlling stake in 2019.

Other shareholders include the Iran Foreign Investment Company (15%) and the Namibian government (about 3%), while individual Namibians hold roughly 3%.

Katti wrote to mines minister Modestus Amutse on 29 January, suggesting that young Namibians and communities should be given an opportunity to participate in the ownership of the mine through an equity structure.

He argued that a planned share sale could create a chance to broaden local participation in one of the country’s most important mining assets.

Katti described IDC's potential sale as a rare opportunity to expand Namibian ownership of the mine, which has historically been dominated by large institutional investors.

Mining benefits to flow to local residents

In the letter, Katti proposed that community organisations, youth initiatives and residents of the Erongo region could collectively acquire these shares through a structure such as an Erongo Region Youth Trust.

Under this arrangement, he added, the trust would hold shares on behalf of young people and communities, ensuring that the benefits from mining operations flow more directly to the region's residents.

Such a structure could support job creation, skills development and reinvestment in communities affected by mining activities, he wrote.

Katti stressed that he has no intention of acquiring shares personally and instead offered to provide advisory support to help structure the transaction and raise capital.

Possible financing options, he suggested, could include community trusts, impact investors and partnerships with regional entrepreneurs.

Good idea, but no legal framework

Yesterday, Amutse told Namibian Sun he could not immediately recall receiving the letter.

“That one I can’t recall,” the minister said, but noted that the ministry already runs programmes to increase Namibian participation in the mining sector, particularly through support for small-scale miners and youth-led prospecting initiatives.

“We already have programmes that support youth and small miners. Government has a department dealing with small-scale mining, and we are assisting them with equipment and capacity building,” he said.

While describing the proposal as “a very good idea", the minister cautioned that Namibia currently has no legal framework requiring private mining companies to allocate shares.

“At the moment we don’t have a law that compels private companies to give shares to youth,” he said.

Amutse added that implementing such a proposal could prove tricky.

“If it concerns an existing mine like Rössing, that becomes more complex because it is an established entity. When you ask a company to do something like that, you must be guided by the laws of the country,” he said.

Previous reports

Nevertheless, the minister said government remains open to initiatives that could broaden Namibian participation in the mining and energy sectors.

Windhoek Observer last week reported that Paragon Investment Holdings, led by executive director Desmond Amunyela, had expressed interest in buying the stake as part of efforts to increase Namibian participation in strategic mineral assets.

Amunyela told the publication that the potential acquisition would allow a Namibian company to play a more direct role in the country’s natural resource economy and contribute to broader economic development.

On Monday last week, The Namibian reported that Amunyela and Katti planned to acquire the stake.

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