Chamber of Mines: Selling Rössing the right choice

A state-owned Chinese SOE recently officially took over Rössing Uranium, a transaction mired in controversy. Here is the Chinese news agency Xinhua’s take on the event.

31 July 2019 | Business

We needed a choice and we wanted to see operations at the mine continue and not shut down. – Veston Malango, CEO: Chamber of Mines

The Chamber of Mines in Namibia says the transaction whereby by Chinese National Nuclear Corporation (CNNC) acquired Rio Tinto’s 68.62%-stake in Rössing Uranium is a welcome move to the mining industry.

The chief executive officer of the chamber, Veston Malango told Xinhua: "We needed a choice and we wanted to see operations at the mine continue and not shut down. Following the official conclusion of the transaction, I can say a right choice was made.”

If the mine had not got investors, what was the country going to do with 2 000 unemployed people, Malango asked, highlighting the fact that the country currently is plagued by unemployment issues.

"The new Chinese investors are breathing a new future and we should all embrace and welcome their presence and work together," he said.

The chairperson of Rössing board of directors, Foibe Namene, said "the grand old lady of the uranium sector has once again defied the odds".

"Over the years and many times we wondered, is this finally the end? Is it time to say goodbye? But instead of saying our farewells, we now stand before what is possibly the biggest and most exciting transformation of the long and illustrious life of this world-class operation in the nuclear power industry," she added.

Namene said she believes that CNNC will bring with them best scientific and technological practices as leaders in the nuclear power industry.

Workers

Representing the Mineworkers Union of Namibia (MUN), Johannes Hamutenya, said the transaction is a historic event, not only for Rössing, but for the surrounding communities and the uranium sector.

"The departure of Rio Tinto is bittersweet as it had been operating in the country before independence. But as our mandate states, we will continue to play a pivotal role in maintaining job security," he added.

China

Chinese Ambassador to Namibia, Zhang Yiming, said the new partnership signifies another important achievement of China-Namibia cooperation in the mining industry.

"It is a vivid manifestation of the flourishing development of mutually beneficial economic and trade cooperation between Namibia and China," he added.

He Zixing, the vice president of CNNC, said: “This cooperation will keep continuous tax contributions from Rössing to the nation and provide employment security, will provide more stable employment security for about 1 000 employees and 1 000 contractors of Rössing, will support the Rössing Foundation to continue to fulfil its social responsibilities, will provide the predictable business opportunities for local suppliers and will also promote in-depth cooperation between Namibia and China in trade, investment and industrial development."

Rio Tinto

In an emotional address to the Rössing workers and delegates, Bold Baatar, the CEO of the former majority shareholder Rio Tinto Energy and Minerals, said during their time they had an opportunity to create a world class business that contributed to the growth and development of Namibia and its people.

"While this was not an easy choice to make to sell, it was one that ensured a strong future for the business," he added.

According to him, with the new partners CNNC, Rössing will chart a new pathway, sustaining the business for years to come.

Baatar said even as the Rio Tinto flag comes down over Rössing, the company will very much remain committed to Namibia.

Government

Speaking on the same occasion, Erongo governor Cleophas Mutjavikua welcomed the new investment and stated that the region will now focus on building a new chapter in the history of Rössing Uranium.

"We know that this new chapter would allow the businesses to prosper to the benefit of not only our stakeholders, but also the economy at large," he added.

The deputy minister of mines and energy, Kornelia Shilunga, said that the event signalled the dawn of a new future for all.

"With the necessary cooperation with government and stakeholders, a lot can be done for future generations," she added. – Nampa/Xinhua

Similar News

 

Copper struggles on virus resurgence

20 hours ago | Business

Copper prices eased back yesterday from the highest levels in more than two years as Covid-19 cases surged, threatening to curb economic activity and metals...

'Broke' Edgars won't dent Oryx rent

20 hours ago | Business

Oryx Properties has shielded itself against possible vacant space in Maerua Mall resulting from Edcon's bankruptcy protection by reaching a lease agreement with South African-based...

Declining repo rate supports domestic activities

20 hours ago | Business

PHILLEPUS UUSIKUThe Bank of Namibia (BoN) and the South African Reserve Bank (SARB) have cut the repo rate several times since both countries announced states...

Namdock jumps into staff housing delay

20 hours ago | Business

ELLANIE SMIT WINDHOEK Walvis Bay ship repair company, Namdock, says a new contractor should be appointed as soon as possible to proceed with a...

Mining safety worsens

20 hours ago | Business

ELLANIE SMITWINDHOEKDespite some impressive individual member achievements, overall safety at Namibia's mines declined last year.This is according to Chamber of Mines president Zebra Kasete, who...

COMPANY NEWS IN BRIEF

20 hours ago | Business

Shell launches cost-cutting drive Royal Dutch Shell is looking to slash up to 40% off the cost of producing oil and gas in a major...

No fracking in Kavango - ministry

20 hours ago | Business

ELLANIE SMITWINDHOEKThe mines ministry has dismissed reports of fracking activities in the Kavango Region that could threaten the Okavango ecosystem.Reconnaissance Energy Africa (ReconAfrica) last week...

KIA Motors announces safety recall

20 hours ago | Business

KIA Motors South Africa (Pty) Ltd will conduct a safety recall on 2 175 KIA Sorento (BL) and KIA Carnival/Sedona (VQ) models manufactured in Korea...

Mining industry contracts 11.1%

1 day - 21 September 2020 | Business

ELLANIE SMITWINDHOEKThe mining industry has recorded a negative growth of 11.1% last year, a deep contraction from the positive growth of 16.1% in 2018.This is...

Start-up grant application date extended

1 day - 21 September 2020 | Business

ESTER KAMATIOTJIWARONGOThe applications for phase two of the financial assistance grant for start-ups, which was rolled out through a partnership between the ministry of industrialisation...

Latest News

Copper struggles on virus resurgence

20 hours ago | Business

Copper prices eased back yesterday from the highest levels in more than two years as Covid-19 cases surged, threatening to curb economic activity and metals...

'Broke' Edgars won't dent Oryx...

20 hours ago | Business

Oryx Properties has shielded itself against possible vacant space in Maerua Mall resulting from Edcon's bankruptcy protection by reaching a lease agreement with South African-based...

Teenager raped in quarantine

20 hours ago | Crime

JEMIMA BEUKES AND ADOLF KAURESWAKOPMUND/WINDHOEKSwakopmund State Hospital driver, 26-year-old Glenn Clifford Leister, has been denied bail by the local magistrate's court after appearing in connection...

Covid-19: Partying Namibians throw caution...

20 hours ago | Health

JEMIMA BEUKES WINDHOEKNamibians have thrown caution to the wind and are failing to adhere to regulations without being policed, after the Covid-19 state of emergency...

Swapo's Wakudumo and Shinduvi face...

20 hours ago | Politics

Kenya KamboweRUNDUThe Swapo Kavango East regional executive committee (REC) passed a motion of no confidence in the region's coordinator Ottilie Shinduvi and the regional mobiliser...

Kauhaie wins the crown

20 hours ago | Youth

Irene-Mari van der Walt Swakopmund • [email protected] the cancellation of the Mr Teen Swakopmund 2020, the Miss Teen Swakopmund 2020 pageant went ahead at...

Declining repo rate supports domestic...

20 hours ago | Business

PHILLEPUS UUSIKUThe Bank of Namibia (BoN) and the South African Reserve Bank (SARB) have cut the repo rate several times since both countries announced states...

Government availing shacks humiliating

20 hours ago | Opinion

In January 2019, President Hage Geingob described shacks (corrugated iron homes) as a 'humanitarian crisis'. “We have a crisis where human beings are staying in...

World Tourism Day

20 hours ago | People

Michael ShagandjwaThe country should establish more unique heritage attractions that reflect our country’s background. Create an interesting image with reservations that are worth viewing and...

Load More