Shiva Uranium looks to fresh start with another Zuma link

23 May 2010 - 02:08 By Zweli Mokgata
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Shiva Uranium chief executive Jagdish Parekh hopes his newly acquired mine will benefit from the input of President Jacob Zuma's son Duduzane Zuma as shareholder.

Parekh will be looking to steer clear of labour disruptions despite similarities with another doomed venture involving Zuma progeny.

The new operation is based at an old Uranium One mine near Klerksdorp in the North West. The mine employs 1000 people and aims to grow the workforce to about 3000.

Management will be cautious to avoid the calamity that unfolded when former president Nelson Mandela's grandson, Zondwa Mandela, and Zuma's nephew, Khulubuse Zuma, took control of a mine in Grootvlei, formerly owned by Pamodzi, through their company Aurora Empowerment Systems.

In that case, Aurora failed to meet its promises, and was met with labour uprisings and a media backlash. Aurora is now facing criminal charges brought by the Department of Water Affairs over poor waste disposal.

This week Uranium One sold its Dominion mine to Oakbay Resources and Energy for $37.3-million.

This will secure mining rights over more than 14000ha.

The deal includes three developed decline shafts, a gold treatment plant, a pressure leach uranium plant and a plant that enables beneficiation.

Parekh, a former CEO of JCI Limited, said: "We have completed the rehabilitation of the mine and have brought it out of care and maintenance as part of an aggressive schedule which should see us putting the first product through the plant this month."

Oakbay Resources is jointly owned by Oakbay Investments (85%) and Indian conglomerate Action Group (15%). A consortium of black investors including Mabengela Investments, headed by the younger Zuma, acquired 26% of Shiva from Oakbay Resources through a fully vendor-funded transaction.

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