The Erongo Traditional Authorities Trust has called on government to intervene, after it emerged that they are in danger of losing a 15% stake in the N$1.4 billion sale of the Navachab gold mine near Karibib. Last year local businessman Knowledge Katti’s Giyani Gold teamed up with Pan African Resources, a South African precious metal company linked to ANC deputy president Cyril Ramaphosa, to purchase the mine. The deal had been structured to include that 15% of the shares be given to the traditional authorities surrounding the mine. It has now emerged that the mine’s owners AngloGold Ashanti are in advanced talks with United Kingdom-based mining investors QKR Corp about a new deal, that would sideline the traditional authorities. Leaders representing the traditional authorities met in Windhoek on Friday to discuss their dismay over possibly losing out on a chance to establish a significant stake for locals in the producing gold mine. “Namibia is one of the few countries left in the world where big mining companies can come in, drill huge holes in the land to extract wealth, and then exit without leaving a single thing of benefit,” Erongo Traditional Authorities Trust founder Frans Gaosëb said at the meeting last week. He continued: “The language Giyani spoke made sense to us, because we were offered 15% shareholding in their setup. That would have meant so much to our traditional authorities, who up until now are not able to uplift the conditions of their people.” He lamented Namibia’s lack of legislation obliging mining companies to give local communities an equity share in their operations, which he said not only boosts conditions locally, but ensured peaceful co-operation, as communities would take ownership in such ventures. Without waiting for an official announcement by Anglo Gold, expected to be made anytime this week, the trust members on Friday initiated communication with the Minister of Mines and Energy Isak Katali, appealing for inclusion in whatever deal is reached with Anglo Gold Ashanti. Their demands include a 5% equity stake - possibly within the one to be granted to State mineral company Epangelo Mining - and a N$5 million cash amount, to be shared between the five traditional authorities, to immediately benefit their communities. According to its official website, the open-pit Navachab mine, situated about 170 kilometres northwest of Windhoek, produced a total of 68 000 ounces of gold and employed 482 people in 2008. Anglo Gold Ashanti said it is putting the project on sale due to cost-cutting measures. The consortium bid by Giyani Gold and Pan African Resources, would reportedly have been comprised of cash and royalties. According to industry sources cited last week, QKR had been in discussions with the company to buy Navachab for between US$110 million (N$1.2 billion) and US$120 million (N$1.3 billion).
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