The share price of uranium developer Paladin Energy returned to around 68c a share on Friday, after the Namibian government clarified that it would not be taking any stakes in existing mineral or petroleum licence holders.
Paladin’s shares on the ASX fell by 13c each earlier this week after media reports quoted Mines and Energy Minister Tom Alweendo saying the Namibian government was making a case for local ownership, which would take the form of a minimum equity percentage in all mining companies and petroleum production.
Paladin was forced to suspend share trade on the ASX as the company’s shares fell from 66c a share to 54c a share.
In a statement from the Namibian government, shared by Paladin on Friday, the Ministry of Mines and Energy said the reality remained that the government could, through its public enterprises, demand a certain minimum stake in any mineral or petroleum licenecs that may be issued in the future.
Paladin is working to restart its existing Langer Heinrich operation in Namibia, at an expected capital cost of $81-million. The project’s life-of-mine production is estimated at 77.4-million pounds over a 17-year miner life, at an estimated C1 cost of $27.40/lb.