EPL kingpin breaks silence

Kenya KamboweRUNDUMining licence millionaire Peter Shifwaku says there were no bribes involved when his company sold an exclusive prospecting licence (EPL) for about N$50 million to Chinese lithium miner Xinfeng Investments immediately after getting it.With rife allegations of bribes and being a proxy for his cousin, Ralph Muyamba - who was until recently the technical advisor to mines minister Tom Alweendo, Shifwaku said those making such allegations don’t understand how the business of mining licences works.Shifwaku is the owner, at least on paper, of Orange River Mining, the company that was controversially awarded an EPL previously belonging to Karlowa Mining Enterprise.Karlowa’s EPL was not renewed by the ministry when it expired, sparking claims that bribes were at play when the EPL was awarded to Orange River Mining, and that Muyamba used his inside connections to ensure his cousin’s company gets the EPL.Alweendo, who has flatly denied allegations that he benefitted from the deal, last week removed Erasmus Shivolo – whose name was also implicated in the bribery allegations – as mining commissioner.The EPL in question covers an area in Uis where a lucrative mining deposit of lithium is found.Immediately after getting the EPL previously belonging to Karlowa, Shifwaku’s company sold its interest in that licence to Xinfeng Investments, for a reported N$50 million.Shifwaku insists this was a clean transaction, devoid of any bribery and underhand dealings.‘Pure business transaction’“There were no bribes paid in that deal. The contract signed between my company and the investors is clear as to what the money was intended for. It was a pure private business transaction like any other,” he explained.“Whoever claims that EPL business may contain bribery does not know about mineral rights. And our people need to be educated about this. I applied for an EPL that was expiring, I took my chance and got it like anyone who would’ve applied for it could have.“Luckily, it landed in my favour, so I have the right to sell it to any investors in order to make money and build my business. There was no bribery involved. I deny such allegations and rebuke it in my business operations.”Copper EPL sagaWhile the focus is currently on Shifwaku’s lithium EPL, Namibian Sun has also learnt that Orange River Mining in 2020 applied for EPL3140, which covers an area near Noordoewer, believed to have good deposits of copper.EPL3140 was previously owned by Haib Minerals, held by Canadian listed company Deep-South Resources Incorporated.Haib Minerals’ EPL was not renewed after it lapsed in June 2021. The matter is currently in court, with the verdict of whether the minister’s decision not to renew the EPL in question will be revoked or confirmed to be made on 18 November.Orange River Mining applied for EPL3140 on 12 November 2020, about six months before Haib Minerals’ licence expired.According to Deep-South Resources CEO Pierre Léveillé, the reason provided by the minister to refuse the renewal was that Haib Minerals failed to carry out substantial exploration work and failed to complete a pre-feasibility study as proposed at a previous renewal in April 2019.He said Alweendo, who decided not to renew the EPL, was ill advised by Muyamba and Shivolo to give the licence to Orange River Mining.Lacks funds, expertiseLéveillé questioned Alweendo’s fairness for overlooking over N$80 million the company has spent so far - and for giving the EPL to an entity [Orange River Mining] which, he argued, lacks funds and expertise.“Does the minister have no qualms removing licences from people who have invested N$88.8 million in four years?” he asked.On this, Shifwaku denied any wrongdoing, saying he applied for an EPL that was about to expire and that his cousin, Muyamba, had no influence in the matter.“In 2020, at that time when I applied for that EPL, it was not limited as to how long can one apply. You can apply any time,” he said.“My cousin Ralph Muyamba had no power to influence a decision not to renew a licence. The process of [a] renewal application goes through an evaluation committee called the Mineral Licencing Advisory Committee that recommends to the minister.“My cousin was never a member of that committee. How can a person who is not a member of a committee influence a committee decision?“Lastly, the Mineral Act only empowers the mining commissioner [Shivolo at the time] and the minister to make decisions. My cousin was never the commissioner nor the minister,” he said.Ready and willing“I have investors ready to develop a mine in the area,” Shifwaku said. “In fact, it’s against the law for a company to hold mineral rights for over 18 years. The law only allows three years’ initial period with two renewals. Any further renewals are by the minister’s discretion.“This licence has been renewed more than seven times - that’s serious abuse of power. How can a minister apply discretion over five times? I think the committee and Alweendo did the right thing by refusing that renewal.”Alweendo became minister of mines in 2018.

EPL kingpin breaks silence

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Namibian Sun 2024-11-25

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EPL kingpin breaks silence

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Namibian Sun 2024-11-25

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