Swakopmund Matters 13 - 2014 – “Erongo, Kunene demand benefits from EPLs” by Shinovene Immanuel in The Namibian of 3 July 2014 This article, although not dealing with the issue of marine phosphate mining, does focus on an aspect of that issue which must be kept in mind by all Namibians – namely, the foreign ownership and control of the companies having been granted EPL’s for marine phosphate activity. This article draws attention to a Parliamentary Report compiled by the Standing Committee on Legal Affairs which was tabled in Parliament last week. Several statements in the Report are quoted in the article: • “The people in Erongo and Kunene regions are not happy that lucrative exploration licenses are issued to companies which do not make any meaningful contribution to community development”. • “They are demanding involvement and consultations regarding the extraction of minerals in their areas”. • “Regional councils, local authorities and taxation authorities as well as communities of the two regions are not satisfied with the way Exclusive Prospecting Licenses are issued by the Ministry of Mines and Energy”. • “In the interest of wealth distribution, the communities need some kind of involvement and consultation, as these mineral resources are exploited and mined in their areas. They do not receive any royalties from the mining companies, nor do the mining companies make any meaningful social contribution to local authorities and communities”. The article highlights these additional points: • “A report tabled by a Parliamentary Standing Committee on Economics, Natural Resources and Public Administration last year raised the issue of lack of consultation by the Ministry of Mines and Energy in awarding prospecting licenses. • “Mines and Energy Minister Isak Katali admitted in 2011 that Namibia has become an ‘Eldorado of speculators and other quick-fix, would-be mineral explorers and mining developers’ ”. • “A report released by the Institute for Public Policy Research (IPPR) last year confirmed claims of underhand deals in the exploration sector”. The importance of all of the above is the fact that three of the major companies involved in marine phosphate activities are foreign owned and controlled, namely • The project of LL Namibia Phosphates (Pty) Ltd is in Luderitz and is 80% controlled by an Israeli national, Mr. Lev Leviev of the Leviev Group of Companies (LGC). LGC owns the ‘BEE company’ Sakawe Mining Corporation (Samicor), in which the Namibian Government has 8%, the National Youth Service 2%, and Longlife Mining (representing formally disadvantaged people) 10% shareholding.• The project of Namibia Marine Phosphate (NMP) is called Sandpiper Marine Phosphate Project (SMPP) and will focus on an area south of Walvis Bay. Originally two Australian companies (Minemakers & UCL Resources) were the major shareholders with 85% shared equally amongst the two of them. That left NMP with only 15%. In December 2012 Minemakers sold its 42,5% share to Mawarid Mining of Oman. Still leaving the Namibian component of the company with only 15%. • New Zealand’s Chatham Rock Phosphates (CRP) has established a company, MANMAR INVESTMENTS ONE HUNDRED SIX (Pty) Ltd., in Namibia, but its shareholding is not yet known. It can safely be assumed that Namibians will have a significant minority shareholding – just like LL NP and NMP. As alluded to in the above quoted Parliament Report the very question that arises in respect of these three companies is: what benefit will Namibians receive when the interests and involvement in each of these companies are so overwhelmingly foreign. What share will Namibians get after these companies repatriate their profits to the satisfaction of majority shareholders living in foreign countries? The first President and Founding Father of Namibia, Dr. Sam Nujoma, added his opposition to phosphate mining along the Namibia coast in an interview with New Era which published an article in its edition of 17 December 2013. He also voiced his opinion on and dissatisfaction with the fact that these marine phosphate projects are foreign owned and controlled. Swakopmund Matters 3 July 2014 (For Swakopmund Matters the environment of the Namibian coastline and its ocean matters) h
Posted on: Thu, 03 Jul 2014 18:45:23 +0000
Trending Topics
Recently Viewed Topics
© 2015