Competition Commission pegs stringent conditions to Rössing Uranium deal
The CEO of the Namibian Competition Commission, Vitalis Ndalikokule, this week announced the approval of China National Uranium Corporation’ (CNUC) acquisition of Rössing Uranium mine.
Ndalikokule said the move was approved after finding that the transaction is unlikely to result in the prevention or substantial lessening of competition.
In order to safeguard employment, local procurement and maintain benefits currently derived from in terms of taxes and royalties, the Commission imposed conditions, that the mine shall have no merger specific retrenchments for 2 years, maintain a 95% local workforce (both worker and management levels), and the mine may not employ non-Namibians at management level for more than a two-year fixed term contract.
Additionally, the Commission imposed that the nine shall not implement any changes to its 30 July 2013 procurement policy which will have the effect of providing less favourable terms to local suppliers, until the expiry of the lifespan of the mine in order to benefit local SMEs for procurement of any services, goods or products below a value of N$250,000.
The Commission also added that the mine should procure a minimum 80% of any of the above services, goods or products from companies which are majority Namibian-owned and registered, and employ a minimum of 75% Namibians.
The deal with CNUC to acquire the entire issued share capital of Rio Tinto Overseas Holding Limited will give the Chinese company control over Rössing Uranium Limited. The deal is expected to be sealed this year.