French company enters Namibian uranium sector

THE race for worldwide uranium resources has reached new heights with a French state-owned enterprise taking over the British-based company UraMin for a staggering US$2,5 billion or approximately N$17,5 billion.

Uramin has a Namibian subsidiary and a uranium exploration licence at Trekkopje in the Erongo Region. The French parastatal Areva – involved in enriching uranium for fuelling atomic energy plants, recycling nuclear fuel rods and the construction of such plants – took control of UraMin this month.Areva offered to buy out the shareholders for US$7,5 per share in mid-June and 92 percent of them accepted the friendly takeover.The total amount offered came to just over N$17,5 billion.Areva wants to expand its uranium mining activities via the UraMin uranium deposits it has in Namibia, South Africa, the Central African Republic and Canada.”These deposits should result in an annual production of 7 000 tonnes of uranium after 2012,” said Areva Chief Executive Officer Anne Lauvergeon in a statement last week.”The commissioning of these projects will enable Areva to further diversify its production resources for its customers’ uranium supplies over the long term.”UraMin was formed in February 2005 and it listed on the London Stock Exchange to raise capital for its ventures.According to Resource Investor online, the market valuation of UraMin stood at US$833 million (about N$5,8 billion).Some individual shareholders owned six million or even eight million shares.Selling the company off for N$ 17,5 billion through the generous offer of N$52 per share, some of the individual shareholders made substantial gains on their stakes in just 30 months.According to James Pittman, a UraMin board member until last month, friendly takeovers in the mining sector – even of such magnitude – are not exceptional.”Traditionally, exploration and exploitation require different skills,” Pittman, who is based in Johannesburg, told The Namibian yesterday.”Smaller entities get involved in exploration and if promising finds are made, they look at listing on stock exchanges for exploration and bigger companies take over,” Pittman said.The recent rush for uranium and the virtual doubling of uranium prices over the past seven months might have also have played a role, Pittman added.Uranium prices rose from about US$60 per pound to over US$130 in June and levelled at US$120 last month.The Trekkopje uranium deposits in the Erongo Region were described as “vast” by UraMin, which estimated an annual production of 1 500 tonnes a year from 2008 onwards.Areva will now take over the Trekkopje operations.The French parastatal Areva – involved in enriching uranium for fuelling atomic energy plants, recycling nuclear fuel rods and the construction of such plants – took control of UraMin this month.Areva offered to buy out the shareholders for US$7,5 per share in mid-June and 92 percent of them accepted the friendly takeover.The total amount offered came to just over N$17,5 billion.Areva wants to expand its uranium mining activities via the UraMin uranium deposits it has in Namibia, South Africa, the Central African Republic and Canada.”These deposits should result in an annual production of 7 000 tonnes of uranium after 2012,” said Areva Chief Executive Officer Anne Lauvergeon in a statement last week.”The commissioning of these projects will enable Areva to further diversify its production resources for its customers’ uranium supplies over the long term.”UraMin was formed in February 2005 and it listed on the London Stock Exchange to raise capital for its ventures.According to Resource Investor online, the market valuation of UraMin stood at US$833 million (about N$5,8 billion).Some individual shareholders owned six million or even eight million shares.Selling the company off for N$ 17,5 billion through the generous offer of N$52 per share, some of the individual shareholders made substantial gains on their stakes in just 30 months.According to James Pittman, a UraMin board member until last month, friendly takeovers in the mining sector – even of such magnitude – are not exceptional.”Traditionally, exploration and exploitation require different skills,” Pittman, who is based in Johannesburg, told The Namibian yesterday.”Smaller entities get involved in exploration and if promising finds are made, they look at listing on stock exchanges for exploration and bigger companies take over,” Pittman said.The recent rush for uranium and the virtual doubling of uranium prices over the past seven months might have also have played a role, Pittman added.Uranium prices rose from about US$60 per pound to over US$130 in June and levelled at US$120 last month.The Trekkopje uranium deposits in the Erongo Region were described as “vast” by UraMin, which estimated an annual production of 1 500 tonnes a year from 2008 onwards.Areva will now take over the Trekkopje operations.