The Industrial Development Corporation (IDC) aims to dispose of its stake in Namibian uranium miner Rössing, which it co-owns with China and the under-fire Iranian government.
Rössing, majority owned by the Chinese state-owned China National Uranium Corporation (CNUC), has been in production since 1976, with the IDC one of the initial investors in the group.
“The mine’s operational success has been underpinned by its substantial resource base, established infrastructure, and strategic importance in the global nuclear market. The IDC is a 10.2% shareholder in the business,” the IDC said in its expression of interest document.
“IDC was one of the founding shareholders of the business in [the] 1970s, has reached its investment horizon in the business and is looking to dispose of its 10.2% equity stake.”
Rössing in 2023 reached record production levels, the year in which its management extended the mine’s life from 2027 to 2036, with plans for further life extension on the cards as the company assesses additional uranium deposits.
Rössing’s primary product is uranium oxide, extracted from tough granite known as Alaskite. Rössing is the third-largest mine of its kind in the world, and its customers are represented in all big nuclear power markets.
The IDC said it decided to sell the stake because it has “reached its investment holding period”. The Iranian government holds a 15% stake in Rössing, via the Iran Foreign Investment Company (IFIC).
CNUC owns a 68% stake, which it bought from mining major Rio Tinto in 2019.
Sanctions
While Iran owns a significant stake in Rössing, one of the world’s largest open-pit uranium mines, due to international sanctions it has been unable to receive any uranium or dividends from the investment since 2007.
The Namibian government has insisted over the years that it did not enter into commercial deals to supply Iran with uranium.
Under UN, US, and EU, restrictions, Namibia cannot transfer funds or assets that might indirectly benefit Iran’s nuclear programme.
All dividends payable to IFIC are deposited into escrow accounts in Namibia, where they remain recorded on the company’s books but are inaccessible to Tehran.
Iran’s uranium enrichment programme is a big international concern, with the US hell-bent on preventing the country from building nuclear bombs.
Iran’s ambitious nuclear power plans are longstanding. Starting in the 1970s, Iran’s atomic establishment, operated by the Atomic Energy Organisation of Iran (AEOI), discussed building 20 large nuclear power reactors.
US President Donald Trump this month announced a 25% tariff on goods from countries with commercial ties to Iran, as rights groups say more than 600 protesters have been killed during anti-government protests.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.