Rossing goes to China

Competition Commission gives green light for CNUL -RUL deal

Strict rules ensure Chinese keep their hands off jobs and business

Sharlien Tjambari

The Namibian Competition Commission approved the acquisition of Rössing Uranium Limited (RUL) by China National Uranium Corporation (CNUC) with a list of strict conditions. One of the most important conditions is the Chinese must ensure that no more than 5 % foreigners may be employed by RUL until the end of the mine’s life.

The Commission made the announcement yesterday in a press statement where it was also set out in no uncertain terms that the protection of Namibian jobs and Namibian procurement is essential.
The following other conditions were set out by the Commission, according to the press statement:
The first condition set by the Commission is that no acquisition or merger specific retrenchments may take place within a period of 24 months.
Secondly, RUL must maintain the ratio of 95% local employment to 5 % foreign employment. Thirdly, RUL may not employ any foreigner at management level on any other basis than a fixed two year contract.
Fourthly, RUL’s 2013 procurement policy must remain in place.
Fifthly, procurement below the value of N$250 000 may not be more than 20 % from foreign businesses. A total of 80 % of the procurement must be made from Namibian SME’s on condition these SME’s are Namibian owned and registered and employ a minimum of 75 % Namibians.