Photo by: Bloomberg
PERTH (miningweekly.com) – Uranium developer Paladin Energy halted share trading on Tuesday as the company’s share price tumbled on reports that the Namibian government is considering taking a minority stake in mining and petroleum producers.
Bloomberg quoted Minister of Mines and Energy Tom Alweendo saying that “We are making a case that local ownership must start with the State, which holds ownership of our natural resources.”
"The proposed State ownership should take the form where the State owns a minimum equity percentage in all mining companies and petroleum production, for which it does not have to pay," he was quoted as saying.
At the start of trade on Tuesday, Paladin shares tumbled from around 66c a share to around 54c a share.
Paladin, which is working to restart production at its Langer Heinrich mine in Namibia, requested the trading halt to remain in place until June 1, or until the company could make a formal announcement regarding the statements made by the Namibian government.
Restart costs for the Langer Heinrich operation have previously been estimated at $81-million, with the project’s life-of-mine production estimated at 77.4-million pounds over a 17-year mine life, at an estimated C1 cost of $27.40/lb.