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Namibia sets up State-owned mining firm

The government of Namibia, a major diamond and uranium producer, has created a State-owned mining company to take part in the country's exploration and mining drive, a senior official said, Reuters reported.

Mining Commissioner Erasmus Shivolo said the company, to be launched this December, will not limit itself to one mineral.

"The company will be looking at all strategic minerals: diamonds, uranium, gold and copper ... a whole range," he said late on Tuesday, accoridng to Reuters.

While initial funding will come from the government, Shivolo said various private and state-owned mining companies have asked to partner with the new firm.

"Discussions are ongoing ... (but) there are no specific projects yet that the company is looking at," he said.

Neighbouring South Africa is reviving a State-owned mining firm, the African Exploration Mining and Finance Corp Ltd. This move has raised concerns among foreign investors, wary of greater state involvement in the sector that could signal a larger shift to the left, the report said.

Shivolo said Namibia wanted its State-owned firm to be transparent, and a board will run it as an independent entity.

"They will run it as a pure business entity with the purpose of making money, for themselves and for the state," he said.

Beyond uranium and diamonds, firms were also exploring for and mining gold, iron ore, lead, zinc and manganese, he said.

Thomson Reuters.