NAVACHAB’S managing director, George Botshiwe, confirmed that the main shareholder of the mine had agreed to remove two Namibian directors from its board of directors.
The Navachab gold mine at Karibib is owned by UK-based QKR Namibia Mineral Holdings (92,5%), while the national mining company, Epangelo Mining, owns the remaining 7,5%.
Their marriage has, however, turned toxic over the past few years, to such an extent that mines minister Tom Alweendo was forced to intervene to put out the raging fire.
Botshiwe, who is part of the UK-based company, admitted the board changes in answers sent to on Monday.
He said QKR Namibia Mineral Holdings informed Epangelo Mining that they wanted to remove Electricity Control Board chief executive Foibe Namene, and Navachab Gold Mine’s corporate affairs manager Chris Movirongo from the Navachab board.
“QKR Namibia Mineral Holdings is exercising its rights as a shareholder under the shareholders’ agreement, in the same way that Epangelo would expect to be free to do if it decided to remove its shareholder-nominated director,” Botshiwe explained.
Namene and Movirongo declined to comment.
Epangelo chief executive officer Eliphas Hawala complained in a letter dated 5 March 2018 that the company was engaging in “selective mining for cash”, changing the board at will, and eroding the governance of the mine.
“The only thing the two directors have in common is the fact that they are from a previously disadvantaged Namibian background, and … have consistently provided their sound opinions and input without fear or favour, as required for good corporate governance,” he stated.
Botshiwe, however, insisted that their “decision was based on good corporate governance, which encourages the rotation of directors to bring a fresh perspective, and has nothing to do with the fact that these directors are previously disadvantaged Namibians”.
Epangelo also questioned Botshiwe’s lack of a mine manager’s certificate.
Botshiwe said his understanding is that a mine manager’s certificate of competency is not a requirement for any member of the senior management team.
“Although recognised in Namibia according to the Chamber of Mines, the mine manager’s certificate of competency is a South African mine certificate offered by the South African government and required in South African mines, and not a legal requirement in Namibia,” he added.
Navachab’s majority owners were also accused of moving away from their promise to inject US$90 million [N$1,2 billion] into the mine as part of an expansion programme.
Botshiwe responded by claiming that QKR Namibia Mineral Holdings pumped N$700 million into Navachab for expansion projects.
He rejected claims that the company was cutting production to reduce its workforce.
“Management reported to the Navachab board that as part of project Khaima, it would be necessary to implement a process of voluntary separation, and depending on the outcome of this, it might be necessary to implement forced separation initiatives.
“Navachab also took steps not to renew fixed-term employment contracts,” he said.
Botshiwe did not provide figures about the number of people who left the mine, but he claimed that Navachab’s management followed Namibia’s labour laws.
“Production has not been cut, as the ore processing mill is running at full capacity. However, considering that Navachab mine’s access to ore is today a combination of smaller satellite pit deposits (not the main pit) and lower grade stock piles amassed from previous years, it is only natural that gold production has decreased,” he noted.
Statistics from the Chamber of Mines of Namibia show that the mine realised N$4,7 billion in revenue from 2014 to 2018.
QKR Namibia – which had 409 permanent workers in 2018 – paid N$300 000 in corporate taxes during that time, and N$140 million in royalties.
