Uranium explorer Extract Resources Ltd (ASX:EXT) has received some reprieve from the Namibian government, confirming the security of existing exploration and mining licenses in the southern African country.
Extract's principal asset is the Husab project in Namibia, understood to be one of the biggest uranium mines in the world.
Only last month Extract confirmed the viability of developing the Husab project for $US1.66 billion.
However, the announcement came amid reports that Namibia’s mining rights may be granted to a state-owned company, casting doubt over the Extract’s operations in the country.
Namibia’s mining minister Isak Katali has now confirmed in a statement that existing exploration and mining licenses will not be affected by any proposed changes in the future.
In the second half of 2010, Extract Resources booked a net loss of $33.6 million.
