Promising future of Namibian diamonds

THE Namibian diamonds sector has been described as a sunrise industry whose future lies in the sea.

This was said by Veston Malango, the chief executive officer of the Chamber of Mines of Namibia, when he gave various stakeholders and potential investors a virtual overview of the sector at the Dubai Expo 2020 during the official launch of the Namibia Diamond Week on Wednesday.

The event showcases opportunities in the mining sector by giving prospective investors a snapshot of what they could be part of when they invest in Namibia.

The major player in diamonds production is Namdeb, a joint venture between the government and Debmarine.

Since diamonds occur not only onshore, but also in submarine deposits, a unique high-tech offshore diamond mining industry has developed in Namibia and Malango said diamonds are a major contributor to the Namibian economy, contributing on average 6,4% to the gross domestic product in the last 30 years.

The chamber of mines represents the interest of all major mining and exploration companies in Namibia.

The country’s quality gem diamonds had contributed N$4 billion in royalties and taxes, export levies and dividends to the government, Malango told his audience.

In terms of exports, diamonds contributed 20% of total Namibian exports, to become the country’s major foreign currency earner, Malango said, adding that last year Namdeb employed more than 3 000 workers on its land and sea operations.

Malango said a new mining vessel worth N$7,5 billion, which is expected to add 160 jobs and 500 000 carats to the existing production, will be commissioned in the second half of the year.

“In addition, Namdeb will extend the lifespan of mines on land by another 20 years to 2040 and beyond, and we are upbeat about exceeding the 2 million carat barrier going forward,” he said.

Diamonds have been mined in Namibia since 1908, when railway worker Zacharias Lewala found a stone that would change the course of history of the country, and of alluvial mining.

Malango said the extension of Namdeb land-based operations was a result of successful engagement between the chamber, the government and Namdeb under which Namdeb will pay 5% royalties between 2021 and 2025 instead of the standard 10%.

“I invite investors to participate in Namibia’s diamonds because they are available the world over,” he said.

Various stakeholders gave their views on the Namibian diamond sector in a video narrated by businessperson Salomon Kalondo.

Economist Salomon Hei said diamonds had played their part in putting Namibia on the map.

Businessperson Benita Herma said Namibian diamonds are not only work and grow the economy, but also create a reputation for the country.

“They are clean, above-board and over the years, our clients have insisted that their diamonds must come from Namibia,” she said.

Willy Mertens explained that the diamonds flowed down the Orange River into the Atlantic Ocean where the Benguela current took them north towards Lüderitz instead of south.

The chief executive officer of Namdia, Kenny Hamutenya, said diamonds had the socio-economic impact that led to the establishment of factories to process the gems and laws had to be changed to level the playing field to enable Namibians to enter the sector.

The first diamonds from the sea floor were recovered in shallow waters off the Namibian coast some 110 years ago.

However, it took 50 more years, before some systematic sea floor diamond mining with purpose-built barges occurred in Namibian waters in the early 1960s.

This was followed by a period of detailed exploration and mining tool development, which saw Namibia emerge as the leading nation in marine diamond mining in the late 1980s.

Deputy executive director in the ministry of trade Michael Hamuvindu said Namibia was the first country to include environmental protection in its Constitution and the government had also come up with the mineral beneficiation strategy to entice investors to come and add value to the country’s diamonds.

Email: matthew@namibian.com.na

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