Namibia’s leading diamond miner to extend operations by 20 years

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Diamonds
Diamonds

Namibia’s leading diamond miner Namdeb, a joint-venture company of Namibian government and diamond company De Beers, on Thursday announced it would extend operations from 2022 to 2042.

Namdeb CEO Riaan Burger said that a royalty remission from the Namibian government had enabled the company to extend its operations, added that this would have multiple benefits.

“We expect to ramp up production by 160 percent and we will have a significant investment of 1.8 billion Namibian dollars (120 million U.S. dollars).

Currently, there are 2,100 jobs including contractors and current employees and an additional 600 jobs will be created in order to cater for the increased production activities,” said Burger.

Burger added that 40 billion Namibian dollars will flow into the Namibian economy as a result of the 20 year extension.

Namibia’s Minister of Mines and Energy Tom Alweendo said at the same event that it was imperative for government to safeguard the economy and grant a royalty relief of 5 percent for the first 5 years and then revert to its current 10 percent royalty rate imposed on diamonds for the rest of the 15 year period.

“Mining remains the backbone of the Namibian economy and as one of the largest employment sectors within our country, it is essential that all efforts are made to ensure that the diamond mining process continues to bring about shared value for the all,” Alweendo concluded. Enditem

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