Rössing South deposit draws foreign money

POLO Resources, the South African-based emerging energy company with coal and uranium interests, has acquired a 5,7 per cent shareholding in Extract Resources, owners of the Rössing South uranium deposit in Namibia.

According to a statement on Polo’s website, the company owns 12 608 239 ordinary shares in Extract. Polo has made a strategic decision to refocus its human and financial resources in the uranium sector, Executive Chairman Stephen R. Dattels said.’The investment in Extract is a further major commitment of Polo’s financial resources in what the directors believe could be the largest uranium discovery in the world. We believe Rio Tinto’s 15.57 per cent shareholding in Extract represents an endorsement of Extract’s prospects and of the Rössing South deposit in particular,’ he said.He added that Polo considers it necessary for Kalahari and Extract to remain independent from Rio Tinto in order for them to fully secure the inherent value of Extract’s projects for their shareholders. Polo understands that Kalahari shareholders voiced the same concerns when they refused to endorse the potential merger between Extract and Kalahari over concerns that Rio Tinto could emerge with a controlling interest, Dattels explained. ‘In the opinion of Polo, this would be ‘value destructive’ to Extract shareholders. An additional concern is the fact that Rio Tinto’s Extract shareholding has or may be transferred to the Rössing joint venture which is 15 per cent owned by the government of Iran. ‘Any such transfer would normally require the prior consent of the Australian Treasurer under Australian foreign investment laws and it is unclear if this approval has or will be obtained. The Directors of Polo further believe that there are many better alternatives to create value for Extract shareholders than a joint venture with Rio Tinto,’ Dattels said.Besides their newly acquired interest in Namibia, Polo holds a diversified portfolio of coal and uranium licences in Mongolia. The company has specifically targeted areas of significant known coal resources that are near the necessary infrastructure to export coal into the growing energy markets of adjacent China and Russia.jo-mare@namibian.com.na

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