BEE Agreement - June 2010
Since March 2009 any application to the MME for a new EPL or renewal of any existing EPL once processed by the MME has appended to it three new conditions; namely that any funds raised in respect of the EPL be deposited in Namibia; the EPL shall not be issued unless the applicant proves it has allocated certain previously disadvantaged Namibians (Black Economic Empowerment or BEE) shares in the applicant; and have in place a plan and commitment to empower the nearby community (Broad Based Economic Empowerment or BBEE) once a mineable deposit is found. No percentages or prescribed formula is given.
Three of the four wholly held EPLs, namely EPL 3496 Tubas, EPL 3497 Tumas and EPL 3499 Ripnes, came due for renewal on 5 June 2009 after expiration of their first three year grant period. Application and motivation for their renewal without reduction in area was lodged by RUN management in March.
RUN, in a proactive approach, met with the Deputy Minister of the MME and other senior officials in February 2009 to discuss BEE and BBEE involvement in its activities once projects had been defined and Mining Licences were applied for.
RUN formulated a BEE and BBEE Charter which it presented to the MME and subsequently entered into an agreement with local BEE Company Oponona (Pty) Ltd (Oponona) whereby Oponona would acquire a 5% interest in any and all projects within the three EPL boundaries upon RUN applying for a Mining Licence.
The Directors and principals of Oponona, namely Ambassador Monica Nashandi, Dr Ben Mulongeni and Mr Jason Nandago are well respected Namibians with whom RUN has built a good working relationship.
Historic signing ceremony between Oponona and Reptile
Front: Ambassador Monica Nashandi and Dr Ben Mulongeni
Rear: Mr Jason Nandago and Dr Leon Pretorius.
There is no immediate local community associated with these three EPL areas that could become directly involved in RUN’s activities, but 40% of Oponona has been set aside for a BBEE Trust that will benefit previously disadvantaged Namibians and specifically assist with educating the youth of the general community closest to RUN’s activities. RUN has undertaken to fund the Trust immediately after making its first sales.
The agreement with Oponona was approved by the MME and the three EPLs were renewed in their entirety for a further two years.