Rössing sale approved

The sale of the Rössing uranium mine to the China National Uranium Corporation has been approved, with stringent conditions.

28 June 2019 | Business

The Namibia Competition Commission (NaCC) has approved the sale of Rössing Uranium Limited to the China National Uranium Corporation (CNUC), with stringent conditions.

NaCC spokesperson Dina Gowases announced this yesterday. While it was found by the commission that the transaction would not result in any unfair competition, the NaCC felt the procurement of local goods by the CNUC and job security for locals was a notable concern.

To safeguard employment and local procurement, the commission imposed certain conditions, Gowases said. “There shall be no merger-specific retrenchments of employees of Rössing Uranium for a period of two years. Rössing shall maintain a ratio of at least 95% local employees to foreign employees until the expiry of the lifespan of the mine,” she said. As far as procurement was concerned, the commission said Rössing was to abide by its 2013 procurement policy. “Rössing shall not implement any changes to its 30 July 2013 procurement policy, which will have the effect of providing for less favourable terms to local suppliers, until the expiry of the lifespan of the mine,” Gowases said. Under the framework, for purchases below N$250 000, Rössing is expected to procure a minimum of 80% of any such goods, services or products from companies that are majority Namibian-owned and registered. And at least 75% of its staff complement must be Namibian.

Rössing's total expenditure on procurement in 2018 equated to N$2.4 billion, of which N$1.4 billion was spent on locally procured goods and services. In addition, Rössing is not allowed to employ any non-Namibian at management level on any basis, other than on a two-year fixed-term contract, she said. Rio Tinto entered an agreement to sell its 69% shareholding of the loss-making Rössing uranium mine to the CNUC in November 2018 for a reported N$1.5 billion. The sale will underpin the continuation of operations at the Rössing mine, especially in a low uranium price environment, mine managing director Richard Storrie said. Rio Tinto owns 69% of the Rössing mine, while the Namibian government holds a 3% stake and it has the majority (51%) when it comes to voting rights. The Iranian Foreign Investment Company is a passive legacy investor in Rössing Uranium, holding a 15% stake that goes back to the early 1970s, during the financing of the mine. The Industrial Development Corporation of South Africa owns 10%, while local individual shareholders own a combined 3% shareholding. The mine has enjoyed the title of being the largest open-cast mine in the world and has been in operation for over 40 years.

Similar News

 

The life of a payroll administrator

4 days ago - 13 September 2019 | Business

Yvonne Hamutenya I am employed as a payroll administrator within Air Namibia’s human resources department. I joined the company in March 2016. My core responsibility...

Great risk, great reward

4 days ago - 13 September 2019 | Business

Evany van Wyk In only three years, Braam Vermeulen and his two other founding partners...

Perseverance and a good attitude is key

4 days ago - 13 September 2019 | Business

Evany van Wyk Growing up in the small town of Rehoboth, Chantell Engelbrecht longs for the times she used to play street soccer with her...

Fear is not a factor

4 days ago - 13 September 2019 | Business

Michelline Nawatises Primus Shaapopi was born at Eenhana in the Ohangwena Region. For 17 years, he was raised as a Catholic by his grandmother at...

Self-motivation and teamwork

4 days ago - 13 September 2019 | Business

Mariselle StofbergEvery new challenge can translate into a learning experience, which helps Natalia Simon gain deeper knowledge of my profession.Simon has never allowed the challenges...

Adding value to the equation

4 days ago - 13 September 2019 | Business

Evany van Wyk Born and raised in Oranjemund in the //Karas Region, Marisol Basson attended high school in South Africa. She decided to study marketing...

Energetic and full of ideas

4 days ago - 13 September 2019 | Business

Michelline Nawatises Marike Botha is the legal consultant for Sanlam’s affluent market. Botha is responsible for all legal matters, including legal advice, buy-and-sell agreements,...

Lewcor buys Elizabeth Bay mine

4 days ago - 13 September 2019 | Business

A local family business, Lewcor Group, has acquired a 100% shareholding of Namdeb's Elizabeth Bay. Namdeb announced yesterday the transaction has a value of N$120...

Serious about beer

4 days ago - 13 September 2019 | Business

Mariselle Stofberg With the first sip one is taken on a journey. Each product has a distinct profile that allows you to explore the intricacies,...

Veldsman wins massive grant

4 days ago - 13 September 2019 | Business

Mariselle Stofberg Fresenius Kabi recently announced that Namibian-born Lizl Veldsman (35) is the winner of the JUMPstart research grant.The grant was awarded at the 41st...

Latest News

Legal bullet aimed at cops

16 hours ago | Justice

A Namibian police officer and his bosses are defending a N$3 million lawsuit brought by a grieving mother whose four-year-old son was killed by a...

Botswana boots Namibian refugees

16 hours ago | International

The deportation of 855 Namibian refugees living in Botswana will start today after Botswana nullified their refugee status. The now illegal immigrants have refused...

The next big thing

16 hours ago | People

Elizabeth Joseph #TeamGraduate is a project that was started by Helena Mboti, a Rhodes University alumnus who graduated with a bachelor’s degree in financial...

The next big thing

16 hours ago | People

Elizabeth Joseph #TeamGraduate is a project that was started by Helena Mboti, a Rhodes University alumnus who graduated with a bachelor’s degree in financial accounting...

Our cadre deployment curse

16 hours ago | Opinion

Public enterprises minister Leon Jooste’s frank admission that appointing the right board members to parastatals is pivotal to ensuring their success must have been music...

Respect is a two-way street

16 hours ago | Columns

Octavia Tsibes Imagine being kind, humble and respectful. You have nothing to lose, and as a matter of fact, it costs you nothing to be...

To the brave souls walking...

16 hours ago | Health

The dictionary defines brave as ready to face and endure danger or pain; showing courage. More often than not it is the ‘visible’ bravery that...

HKIA upgrades start, finally

16 hours ago | Transport

The handling capacity of Hosea Kutako International Airport will be doubled by a N$250 million project starting next week to eliminate congestion at Namibia's flagship...

Health services around the clock

16 hours ago | Health

The Katutura health centre, which offers a lifeline to thousands of people each year, will now be operating 24 hours a day, seven days a...

Load More