The Sandpiper Project …

SWAKOPMUND MATTERS (17 – 2012)

Text of the Letter sent on 17 Dec. 2012 to the Chairman of UCL Resources Ltd (being a 42,5% share holder in Namibia Marine Phosphate (NMP)

UCL Resources, in welcoming its shareholder Mawarid Mining as the new joint venture (JV) partner in the Sandpiper marine phosphate project after its former partner, Minemakers, had sold its 42.5% stake in the Sandpiper project and its 70% interest in the Rocky Point project to Mawarid Mining for A$25-million (N$ 228 million), made the following comments by way of its chairman, Mr. Ian Ross on 14 December 2012:

“We expect that Mawarid’s introduction and subsequent acquisition of the Minemakers interest in the Namibia Marine Phosphate JV will significantly fast-track the development of the Sandpiper project and UCL board and management look forward to the successful development of the resource”.

Text of letter to Mr. Ian Ross on 17 December 2012:

“It has been noticed in your welcoming words to Mawarid Mining (MM), your new partner in NMP, that you expected the presence of MM in NMP ” will significantly fast-track the development of the Sandpiper project”.

It is not clear what should be fast-tracked.

The Sandpiper project, as you know, has not yet received any clearance from any Namibian authority to proceed with any activity – neither marine nor terrestrial.

In fact the Environmental Commissioner of Namibia announced on 26 April 2012 that no environmental clearance had yet been issued for the Sandpiper project and that its Environmental Impact Assessment (EIA) report had been referred back to Sandpiper due to inadequate consultations with all interested and affected parties, as required by the relevant Namibian legislation. He also stressed that public consultation and incorporation of comments from the consultation process formed the basis of which a decision could be taken.

No information is available indicating that that position has changed or that NMP has yet complied with all the Namibian legislative stipulations.

We, as Swakopmund Matters, are confident that the appropriate Namibian authorities will not shrink their responsibility when considering the complete EIA and will hold NMP to comply strictly and in full with all applicable legal, statutory and regulatory prescriptions for both marine and land based operations of the Sandpiper project falling under one EIA.

The due processes NMP are thus required to follow before it can commence with any activity are ones that can’t be fast-tracked.

We shall continue doing our utmost to ensure that NMP complies duly with every piece of applicable Namibian legislation and within the time frames required.

In this regards we quote the following from our letter to your new partner, Mawarid Mining, on 4 October 2012:

‘We shall not lower our guard against any one of the proposed marine phosphate projects. We shall remain vigilant.

Everyone who has Namibia’s coastal and marine environment at heart knows that the battle is far from over.

We are not ashamed of the values we advance. We know how important they are. We want to see them preserved.

We shall not relent in our efforts to secure a proper and just place for Namibia’s environment. We shall, however, not be any witness to anyone trampling on a national treasure which the supreme law of this land demands all of us to hold dear, respect and preserve to the utmost. Even if it is Sandpiper’.

We are sending a copy of this letter to Mawarid Mining”.

(NOTE TO READERS: With this change in partnership NMP still remains 85% foreign held and only 15% Namibian)
Swakopmund Matters