South Africa’s IDC Sells Stake in Rössing Mine

Windhoek (bw) • Fifty years after the Rössing uranium mine in the Erongo Region began operations, one of the shareholders, the Industrial Development Corporation (IDC) of South Africa, wants to sell its 10.2 percent stake. In the 1970s, the IDC was one of Rössing’s founding shareholders, whose main shareholder at the time was Rio Tinto.

“The IDC has now reached its investment horizon and intends to dispose of its 10.2 percent stake,” a notice published in local media said. It further stated: “IDC intends to dispose of its shareholding in the company because the holding period for investments has expired.” No further reasons were given.

After Rio Tinto sold its Rössing stake to China National Uranium Corporation (CNUC) in 2018, CNUC became Rössing’s majority owner with a 68.6 percent stake. Fifteen percent of Rössing’s shares have been owned by the Iranian government since 1976. The IDC holds 10.2 percent, while three percent of the shares belong to the Namibian government. However, Namibia has 51 percent of the voting rights. The remaining three percent are held by local individual shareholders.

Interested buyers

According to the IDC, interested potential buyers and investors can now submit written expressions of interest to acquire the 10.2 percent stake. In addition, information such as a brief company description with details of the current management team and shareholders must be provided.

The companies must also align with the IDC’s development objectives, submit a strategic rationale for the planned transaction – including the reasons for their interest in Rössing – and demonstrate that they are financially able to complete the acquisition of the shares. In addition, interested companies must provide the required approval from their supervisory board.