MINES and Energy Minister Erkki Nghimtina yesterday launched the first State-owned mining company, Epangelo Mining – a move he had announced in March this year when presenting the Ministry’s budget.
The company will receive N$1,5 million start-up capital from the Ministry and it will be 100 per cent State owned.A chief executive still has to be appointed and an office set up. ‘With changing dynamics in the global mining industry our thinking on the role Government plays with respect to the management and exploitation of resources have gone through an evolution,’ Minister Nghimtina said.’As our experience in dealing with other countries we learned how their state mining enterprises such as Alrosa and Endiama play a significant role in the development of their mining industries and their ability to generate significant revenue for their fiscus.’Mineral-rich countries mostly did not enjoy proceeds from mining and value adding as the wealth created benefited developed countries, he said.’What is left behind in developing countries is often a negative legacy of destitution and a dilapidated environment,’ Nghimtina added.By establishing Epangelo Mining, Government wants to make sure ‘that Namibians, through their own company, acquire a meaningful stake in their mineral wealth’.Despite its large variety of minerals, Namibia was under-explored, Nghimtina said.’We in the Ministry believe that in order to attract new investment in prospecting and mining, a country must have a business model with parameters tailor-made to manage and run a prospecting and mining operation.’ Epangelo would enable Government to pursue its business imperatives based on sound business principles, ‘with a board and management that is constituted of technical experts who are well-versed in prospecting, mining and regulatory obligations and without treading on the rights of other investors.’The board consists of Elaine Samson, NamGem General Manager Eliphas Hawala, the Ministry’s Chief Mining Inspector Mathews Amunghete, Roger Gertze, who is the strategic executive for finance at the Windhoek municipality, and Helene Indaba.
