Namdeb’s production reaches record high

NAMDEB Diamond Corporation, a joint venture of the Namibian Government and De Beers, yesterday announced its 2004 Annual Review.

Diamond production reached what Namdeb termed as ‘unprecedented levels’ at 1,9 million carats, which is one of the highest levels of production in the history of diamond mining in Namibia. This was a 37 per cent increase compared to the 1,5 million carats produced in 2003.Sales to the Diamond Trading Company – De Beers’ marketing arm – amounted to N$4 billion, a 35 per cent increase from 2003.Namdeb attributed this to increased carat sales, as well as more favourable US dollar prices.Net earnings for the year amounted to N$205 million, while payments to shareholders totalled N$1,05 billion, an increase of 78 per cent from the previous year.Cash at the end of 2004 was at N$187 million, a decrease from the N$208 million of 2003.Namdeb Managing Director Inge Zaamwani said diamond production had been at a 1,3 million yearly average but in 2000, the company carried out a feasibility study to see if the production of two million carats by 2008 was an attainable feat.Results proved that production levels of 2,8 million could be reached by 2010.Zaamwani warned, however, that it should be borne in mind that diamond resources were being depleted.She said Namdeb and De Beers Marine Namibia were investigating sea mining possibilities (at Chameis Bay) by dredging and pumping recovered material to shore for treatment in conventional land-based processing plants.”There is growing optimism that the project will deliver the desired result of increased overall production, as well as providing continued employment for existing employees through reviving plants previously considered for closure,” said Zaamwani.Those attending the meeting where the results were announced heard that Namdeb was continuing to invest substantial capital in finding new reserves and discovering ways of economically mining previously uneconomic reserves, thus extending the life of the land reserves.Key projects for 2004 were the completed construction of the Elizabeth Bay Resource Extension Project and a new treatment plant at Pocket Beach Site.The company also spent close to N$6 million on environmental management, while the Namdeb Social Fund invested nearly N$2,1 million in 33 projects.Namdeb’s half-year financial results are expected to be released in September, said Group Financial Manager, Andrew Schanknecht.This was a 37 per cent increase compared to the 1,5 million carats produced in 2003.Sales to the Diamond Trading Company – De Beers’ marketing arm – amounted to N$4 billion, a 35 per cent increase from 2003.Namdeb attributed this to increased carat sales, as well as more favourable US dollar prices.Net earnings for the year amounted to N$205 million, while payments to shareholders totalled N$1,05 billion, an increase of 78 per cent from the previous year.Cash at the end of 2004 was at N$187 million, a decrease from the N$208 million of 2003.Namdeb Managing Director Inge Zaamwani said diamond production had been at a 1,3 million yearly average but in 2000, the company carried out a feasibility study to see if the production of two million carats by 2008 was an attainable feat.Results proved that production levels of 2,8 million could be reached by 2010.Zaamwani warned, however, that it should be borne in mind that diamond resources were being depleted.She said Namdeb and De Beers Marine Namibia were investigating sea mining possibilities (at Chameis Bay) by dredging and pumping recovered material to shore for treatment in conventional land-based processing plants.”There is growing optimism that the project will deliver the desired result of increased overall production, as well as providing continued employment for existing employees through reviving plants previously considered for closure,” said Zaamwani.Those attending the meeting where the results were announced heard that Namdeb was continuing to invest substantial capital in finding new reserves and discovering ways of economically mining previously uneconomic reserves, thus extending the life of the land reserves.Key projects for 2004 were the completed construction of the Elizabeth Bay Resource Extension Project and a new treatment plant at Pocket Beach Site.The company also spent close to N$6 million on environmental management, while the Namdeb Social Fund invested nearly N$2,1 million in 33 projects.Namdeb’s half-year financial results are expected to be released in September, said Group Financial Manager, Andrew Schanknecht.