The Paladin Energy Ltd (ASX: PDN) share price is having a very strong finish to the week.
In afternoon trade, the uranium developer's shares are up 10% to 67 cents.
Image source: Getty Images
Why is the Paladin Energy share price racing higher?
Investors have been bidding Paladin Energy shares higher today due to some very good news.
Earlier this week, the company's shares were sold off amid concerns over remarks from a government official in the southern African country of Namibia. This is where the company's globally significant uranium mine can be found.
Namibian Mines and Energy Minister Tom Alweendo, said:
We are making a case that local ownership must start with the state, which holds ownership of our natural resources. The proposed state ownership should take the form where the state owns a minimum equity percentage in all mining companies and petroleum production, for which it does not have to pay.
What's the latest?
As you might have guessed from the Paladin Energy share price performance today, things have taken a turn for the better.
This morning, Paladin Energy revealed that the Namibian government has refuted claims that it plans to take stakes in the country's existing mines. It may, however, take stakes in mines that are approved in the future. But this would not impact Paladin Energy's existing operations.
The company attached a government release to its announcement, which states:
The Government has no intention to seize any stake from existing mineral or petroleum licence holders and remain committed to uphold the sanctity of contract. However, the reality remains that Namibians are and remain disadvantaged because they may not have the financial and other means to exercise their rights in relation to natural resources, as such the State as supreme owner of these natural resources may demand a certain minimum stake through public enterprises such as EPANGELO Mining or NAMCOR in any mineral or petroleum licences that may be issued in future.
