Kalahari Minerals Share Discussion Threads

[brad44] 10/5/2011 20:22

Im with Shavian on this, ok short term may be down, but i am happy to hold for another year or so, as the disaster lessons are learnt and +ve sentiment returns and the resource updated and upgraded..

[krakow] 10/5/2011 19:44

I don't see this as good news. Either they'll build an expensive mine or someone will get KAH on the cheap imo.

If the Chinese won't pay 290p what does that say??

[nielsc] 10/5/2011 16:22

Hyper Al/ StrollingMolby,

That seems to make sense. There is also a break fee of £7.5m(?) if CGNPC don't go ahead.

Cheers,
Niels

[strollingmolby] 10/5/2011 16:18

AIUI, CGNPC are unable to reduce their offer so if they wish to continue it is at the 290p already offered. They could, of course, drop their offer, but this may allow another suitor to make an offer - and if it was under 290p, then there is nothing CGNPC could do about it. However, the KAH directors have agreed to support the Chinese bid, so their shares could not be acquired at a lower price by another party whilst the CGNPC bid remains 'tabled'

Followed that?! Hopefully Marben will post a more succinct (& accurate? - Ed) summary in due course. ;o)

SM

[hyper al] 10/5/2011 16:09

so does that mean 290p stands. I'm confused, not really followed this.

[strollingmolby] 10/5/2011 16:04

KAH/CGNPC appeal to reduce Offer Price dismissed by Takeover Panel Committee:

The Hearings Committee of the Panel (the "Committee") met today to hear an appeal by Kalahari against a ruling of the Executive in relation to CGNPC-URC's possible offer for Kalahari (which was set out in CGNPC-URC's announcement of 7 March 2011).

The issue in the hearing was whether or not CGNPC-URC should be permitted to reduce the price of its possible offer from 290 pence per Kalahari share in circumstances in which the announcement of the possible offer did not contain a reservation of the right to do so.

The Executive had ruled that no such reduction of price was permitted under the provisions of the Code.

The Committee dismissed the appeal. The Committee intends to publish a statement with reasons in due course.

CGNPC-URC has agreed to be bound by the ruling of the Committee and is not seeking to pursue any appeal of its own in relation to the subject matter of the appeal by Kalahari.

Kalahari has the right of appeal to the Takeover Appeal Board.

[zangdook] 10/5/2011 14:36

As of December 2010, China imported 2,999 metric tonnes of uranium, almost 10 times more than a year ago period.

Can anyone figure out what they're trying to say here?

One has to wait and see what events unfold on May 12.

And here? Is something scheduled for May 12?

[beefeater25] 10/5/2011 13:54

Interesting martylangan, lot more positive stories about uranium starting to hit the press. India on the hunt to secure supplies now...

India keen to slake uranium thirst, before China finishes the bottle

With China set to become the world's largest consumer of uranium by 2030, overtaking the United States, India is trying to improve ties with Kazakhstan and Australia, to secure uranium supplies.

Author: Shivom Seth
Posted: Tuesday , 10 May 2011

MUMBAI -

Energy-starved India is looking to Kazakhstan and Australia to make up for the loss of nuclear energy from Japan, in the aftermath of the March 11 tsunami.

By ensuring tie-ups for uranium with these two nations, India is also deftly countering China's move to corner the world's uranium market.

Kazakhstan has also agreed to supply uranium pellets to Chinese nuclear plants, in a deal worth several billions. With the expectation of a comfortable supply position, China is set to build 19 nuclear complexes, with another 25 on the anvil.

China's nuclear push has been seconded by a report from the International Atomic Energy Agency, the world's nuclear watchdog. The institute has pointed out that there are 442 nuclear reactors in operation in 30 countries, including Taiwan, and that a further 65 are currently under construction across 16 nations, with 27 being built in China alone.

India, meanwhile, aims to complete building its first indigenous fast breeder nuclear reactor by mid-2012, and plans to add six more to the kitty by 2023. The reactor is set to cost upwards of $1.3 billion.

India has been rushing to secure uranium. Last month, India's Prime Minister Manmohan Singh flew across the expanse of East Asia to Astana, Kazakhstan's new capital. It was the Indian Prime Minister's first visit to Kazakhstan after attending the third BRICS Summit at Sanya in China on April 14.

The outcome: Kazakhstan has agreed to supply 2,100 tonnes of uranium to India's nuclear plants by 2014. Analysts say the move will propel India's plan to increase its energy production five-fold in the near future.

Potential number 1

India and Kazakhstan have been cooperating in the field of civilian nuclear power since January 2009, when the Nuclear Power Corporation of India and Kazakh nuclear company, KazAtomProm, signed a memorandum of understanding during Nazarbaev's India visit.

As of March 31, 2011, nuclear capacity in India was 4,780 megawatts. The country plans to increase its nuclear capacity 13-fold to 60 gigawatts by 2030. Kazakhstan has already supplied 200 tonnes of uranium to India.

Reports indicate that Atomic Energy Commission Chairman Sukumar Banerjee is in Astana to discuss more supply arrangements, and that India is keen to explore possibilities of joint exploration of uranium in Kazakhstan.

Analysts have also alluded to the fact that China is the largest investor in Kazakhstan, buying raw materials and energy and uranium. In 2007, Kazatomprom and China Guangdong Nuclear Power Group agreed to produce nuclear fuel.

Again in April 2009, China and Kazakhstan created the Semizbay-U enterprise at Irkol, planning to annually produce 750 tonnes of uranium. At that time, deputy head of State Energy Management of China, Tian Zhiming, was quoted as saying that China would become the world's largest consumer of uranium by 2030, overtaking the US.

Supply squeeze

What could slow down the tempo of this growth, however, is unavailability of uranium. A research report by market research firm Nomura International has forecast a deficit of uranium ore within the next five years, which has clearly got the alarm bells ringing in India.

India is looking to Australia, which possesses nearly 40% of the world's uranium reserves, to feed the demand. Though India is Australia's third-biggest export market, relations between the two countries have been rather strained.

Political experts say talks are expected to revolve around the long-pending demand for uranium exports. And it wouldn't be the first time this has happened. In 1999, a joint working group on energy and minerals was established between Australia and India, signalling both the countries cooperative intent on the energy front.

The talks are especially important given the continued demand coming out of China which also has strong ties to Australia and, most recently, on March 7, 2011, China's Uranium Resources Company Ltd applied to the Australian Securities and Investments Commission for permission to acquire a stake in Australian firm, Extract Resources Ltd.

Perth-based Extract, owner of one of the world's largest undeveloped uranium projects, is 43% owned by Kalahari. The offer from the Chinese firm values Kalahari at around $ 1.23 billion.

Though China's Uranium Resources is still contemplating whether to make a formal bid for Extract's top shareholder, London-listed Kalahari Minerals, the Asian nation is drafting plans for more uranium purchases.

Reports indicate that China's imports of uranium mushroomed in 2010 to 17,136 metric tonnes, more than triple the number from 2009. The majority of uranium deals are done through forward contracts rather than spot transactions, say analysts.

As of December 2010, China imported 2,999 metric tonnes of uranium, almost 10 times more than a year ago period.

Though China is a signatory to the NPT, India, another suitor for Australian uranium, is not. One has to wait and see what events unfold on May 12.

[jamesmaggs] 06/5/2011 12:03

Friday, 06 May 2011 09:17

Extract Resources, Kalahari Minerals, Weatherly International and Paladin Energy this week expressed the belief that their operations will not be affected by a recent announcement by the Minister of Mines and Energy, Isak Katali, that Epangelo, a state-owned mining company will now hold exclusive exploration and mining rights on uranium, copper, gold, zinc, and coal.
In response to the government's proposed new minerals policy, Weatherly International said in a statement this week, that the minister has advised the Chamber of Mines of Namibia late last month that any new policy will not apply to current licenses and will therefore not affect existing exclusive prospecting licences (EPLs), mining licences and mineral deposit retention licences.
The parent company of Weatherly Mining Namibia, said that its current operations and existing licenses will therefore remain unaffected by any new policy.
In the same vein, John Borshoff, CEO of Paladin Energy stated that: "following discussions with the government of Namibia, it is our understanding that the equity position and operations of Langer Heinrich will remain unaffected."
Extract Resources, developer of the Husab project which contains one of the largest uranium deposits in the world, said the company is confident that the proposed policy changes will not adversely affect its EPL or its mining licence application, lodged on 10 December last year.
According to the mining company, it continues to have regular and positive consultations with the government in relation to its Husab uranium project and points out that EPL 3138, which applies to the area within which the Husab Uranium Project Mining Licence Application is situated, was recently renewed for a further two-year period to 30 April 2013.
The UK-based, Kalahari Minerals, the parent company of Kalahari Uranium Limited, which owns a 40% stake in Extract Resources' Husab, said it remains confident that its relations with the government and its investment will continue to produce successful results, despite the proposed new minerals policy that could see all mining and mineral exploration licences issued to the Epangelo mining company.
"I remain confident that our strong relationship with the government and our investment in Namibia will continue to bear fruit for both Kalahari and Extract, as we work together to ensure all parties benefit from the development of Husab," said Mark Hohnen, the executive chairperson of Kalahari Minerals.
He noted that Extract Resources, together with the board of Kalahari Minerals, has maintained a strong relationship with the government through an active and open dialogue with the appropriate ministers and officials throughout the five years of operations in the country.
According to Hohnen, the boards of Kalahari Minerals and Extract Resources, understand the importance of the development of Husab for the benefit of all stakeholders, and in turn, the government has maintained its support of this process, demonstrated most recently by the extension of EPL 3138, which covers the Husab project area, for a further two-year period to 30 April 2013.
Meanwhile, the the general manager of the Chamber of Mines, Veston Malango, also confirmed in a recent media statement that the new policy will not affect mining licenses already issued.

[cootuk] 05/5/2011 18:15

I wonder whether Glencore might come sniffing if their ipo raises a few spare pounds?

[beefeater25] 05/5/2011 16:13

Bill Gates and Warren Buffett praise uranium
TIM KILADZE - Globe and Mail Update
Posted on Thursday, May 5, 2011 10:56AM EDT

Feeling down and out about the prospects for uranium?
Don't. Bill Gates and Warren Buffet are on your side.

Since the Japanese earthquake destroyed some of the country's nuclear reactors, global investors have shunned uranium stocks. Cameco Corp. is down about 30 per cent year to date. Denison Mines Corp. is down 35 per cent over the same period.

But the two big wigs think the fundamentals are too strong for such a big plummet. Mr. Gates was the latest to speak out in praise of uranium at Wired Magazine's 'Disruptive by Design' conference.

Mr. Gates gave nuclear energy company TerraPower a lot of praise, which makes sense considering that he has invested what Wired described as "undisclosed millions" in the company. TerraPower uses less-toxic uranium as its fuel, so the reactor produce as little as one-one-thousandth of the typical amount of radioactive wastes.

Mr. Gates then added the earthquake has simply shaken public confidence and noted that nuclear waste disposal isn't that big of a problem. "The good news about nuclear is that there has hardly been any innovation," he said. "The room to do things differently is quite dramatic."

Warren Buffett sang a similar tune at Berkshire Hathaway's annual general meeting last week. "I think some people misinterpreted my interview when I said that [nuclear power] had suffered a major setback," Mr. Buffett said. "That does not change my view that nuclear power is important for the world."

Charlie Munger, Berkshire's vice chairman, then added that the public can't afford to be so scared of energy opportunities like nuclear because the chance of failure is so small.

[gero67] 05/5/2011 15:33

Minister dispels nationalisation fears - by Toivo Ndjebela

05 May 2011

WINDHOEK –Mines and Energy Minister Isak Katali has poured cold water over fears in the mining industry that government is about to nationalize mines in the country.

Cabinet confirmed last week Friday that it has endorsed the declaration of uranium, gold, copper, coal, diamonds and rare earth metals as 'strategic minerals' and their rights for exploration and mining would be reserved strictly for state-owned mining company, Epangelo.

The new policy has sent shockwaves down the spines of many investors, many of whom fear their operations and interests in Namibia could be in jeopardy.

Many investors fear Namibia is emulating neighbouring South Africa, where government is weighing whether or not to acquire equities worth 60 percent in all mining companies.

Also across the border, the government of Zimbabwe recently released a new deadline within which miners there should meet the country's indigenization requirements.

But Katali has dispelled any fears that Namibia is emulating any of its neighbours, saying those already embarking on exploration or mining activities are not affected by the new announcement.

"We are talking strictly about any new mineral deposits that would be discovered. Not those already being developed by current investors," he told New Era at the weekend.

But it seems the new policy has already claimed its first victim, the owners of the Haib copper deposit in southern Namibia, whom governments say have made 'little progress'.

"The current licence holders have had exploration rights there for a very long time and little progress has been achieved over the years," cabinet said in a statement.

Namibia Copper Mines Inc and Rusina Mining NL controlled the Haib deposit, but it could not be confirmed whether the two entities still own the project.

Some mining companies in Namibia have already suffered declines in their international stock market values after the announcement came to the fore.

Extract Resources, for example, which is developing a uranium mine near Swakopmund, ended trading down 9.9% Thursday on the Dow Jones.

A fear-stricken investor from Hong Kong called New Era on Friday, seeking clarity on whether the new policy would affect his investment with an Australian company, currently developing a uranium mine in the Erongo Region.

After Katali's announcement of the policy in palrliament a week ago, President Hifikepunye Pohamba, during his state of the nation address on Wednesday last week, reaffirmed government's commitment towards making this policy a reality.

The new policy comes hot on the heels of calls by Namibians for a platform that would allow locals not only to actively participate in the exploitation of the country's mineral riches, but also derive benefits in terms of development.

But Katali was quick to point out that the new decision should not be misconstrued with a nationalization of mines.

"This is definitely not nationalization. All we want is more benefits for Namibians from the country's minerals," Katali said.

The announcement represents another radical policy shift at the Ministry of Mines and Energy since Katali took over 13 months ago.

Cabinet announced Epangelo would own licences and interested investors can partner the state-owned entity in mining or exploration joint ventures.

"Cabinet endorsed that the right to own licences for strategic minerals will only be issued to a state company," reads Friday's announcement.

"Cabinet also endorsed that after approval of the licence by the Minister, the state company may enter into joint ventures with interested parties for exploration and development."

'http://www.newera.com.na/article.php?title=Minister_dispels_nationalisation_fears&articleid=38557' target='window'>http://www.newera.com.na/article.php?title=Minister_dispels_nationalisation_fears&articleid=38557

[gnevans] 05/5/2011 11:43

sold all at an average of 235 post earthquake good luck to all remaining. Whatever you say atbout the board I've made a lot of money ( not as much as I could have.See you at NRRP..

[shavian] 04/5/2011 18:03

Hope springs eternal..EXT trading around C$7.8 across the pond.

[avc0nway] 03/5/2011 23:10

The board might be the KAH board - but one begins to wonder whose employ they perceive themselves to be in.

avc0nway

[beefeater25] 03/5/2011 22:53

Agree Krakow... Any thoughts on how long the takeover panel has to make a decision on allowing CGNPC to reduce the bid?

[krakow] 03/5/2011 22:47

At 270p we can say with certainty that the board is not acting in shareholders' best interests.

[gnevans] 03/5/2011 22:46

remember they reserve the right to bid at 290p if the takeover panel won't allow 260p

[red ninja] 03/5/2011 22:40

Seems to me a £2.70 Kah around AU$10 Ext bid is not as good as the AU$15 Ext bid I was once hoping for, but it is money in the hand when the Japanese nuclear disaster and Namibian mining minister have made financing more difficult.

If RIO are interested let them counterbid otherwise I'd like to take the money and move on..

[beefeater25] 03/5/2011 22:24

Agree. Not getting mine at 270p. The only thing I can think is that the board are desperate to get a bid on the table to start a bidding war. Can't see any way in the world that Rio will let the Chinese take this for 270p a share...

The thing I cant get my head around, is why Kalahari are bothered progressing and promoting the 'MORE' programme if they are happy with the offer that they have recieved? Why not just shut up shop, save money and mine the resource that they already have?

I think that 270p may just be the start... Just a shame we have to wait another month to find out. Anyone have an idea when the next resource update is due?

[thorpematt] 03/5/2011 18:34

270p.

Thanks

But No Thanks.

[gnevans] 03/5/2011 17:24

also leaves the door open for rio... they also reserve the right to offer at 290p so 270-290p seems where we should be..