Namdeb exceeds 2m carats

THE country’s diamond mining giant, Namdeb, has announced that it realised 27 per cent increase in carats produced for the year ended December 31 2006, scaling two million carats for the first time.

Carats sold over last year were 2,174 million up from 1,712 recorded in 2005, propelling diamond sales to N$5,23 billion. This result is in line with the 50-50 joint venture between the Government and De Beers to produce 10 million carats and generate N$43 billion between 2006 and 2010.Namdeb Managing Director, Inge Zaamwani yesterday said the increase in production was due to improvement in its land-based operations at the Pocket Beaches mine, and increased marine production.Diamond sales revenue was also up by 34 per cent to N$5,4 billion compared to N$4 billion of 2005.Cost of sales shot up to N$3,6 billion for the period under review from N$2,7 billion attributable to increased mining activity, higher equipment expenses and fuel price hikes among other factors.Net profit for the year was at N$305 million from N$122 million, while taxation amounted to N$989 million – an increase of 51 per cent – from 2005’s N$655 million.Total dividends declared to shareholders amounted to N$270 million.The company notes, “This has been achieved against the background of substantial capital expenditure intended to ensure Namdeb’s future sustainability.”Cash used in investment climbed 124 per cent from the N$243 million of 2005.The company said the increase was part of a ‘planned investment strategy’ to increase profitable production from land based resources and hence, extend the life mine.”Namdeb continues to invest substantial capital on an annual basis to find new reserves and discover ways of economically mining and treating previously uneconomic reserves, thereby extending the life of the land operations,” read a statement issued by Namdeb.The company has been focussing more on marine operations as land resources are fast depleting, and it is reported that around N$800 million has been invested into capital projects, including a new mine situated between Luederitz and Oranjemund and also into the marine dredging project.This result is in line with the 50-50 joint venture between the Government and De Beers to produce 10 million carats and generate N$43 billion between 2006 and 2010.Namdeb Managing Director, Inge Zaamwani yesterday said the increase in production was due to improvement in its land-based operations at the Pocket Beaches mine, and increased marine production.Diamond sales revenue was also up by 34 per cent to N$5,4 billion compared to N$4 billion of 2005.Cost of sales shot up to N$3,6 billion for the period under review from N$2,7 billion attributable to increased mining activity, higher equipment expenses and fuel price hikes among other factors.Net profit for the year was at N$305 million from N$122 million, while taxation amounted to N$989 million – an increase of 51 per cent – from 2005’s N$655 million.Total dividends declared to shareholders amounted to N$270 million.The company notes, “This has been achieved against the background of substantial capital expenditure intended to ensure Namdeb’s future sustainability.”Cash used in investment climbed 124 per cent from the N$243 million of 2005.The company said the increase was part of a ‘planned investment strategy’ to increase profitable production from land based resources and hence, extend the life mine.”Namdeb continues to invest substantial capital on an annual basis to find new reserves and discover ways of economically mining and treating previously uneconomic reserves, thereby extending the life of the land operations,” read a statement issued by Namdeb.The company has been focussing more on marine operations as land resources are fast depleting, and it is reported that around N$800 million has been invested into capital projects, including a new mine situated between Luederitz and Oranjemund and also into the marine dredging project.