Samicor starts diamond exports

SAKAWE Mining Corporation (Samicor), Namibia’s youngest role-player in the off-shore diamond industry, yesterday started exporting the first diamonds to come from its estimated 12 million carat bearing concessions.

About 6 000 diamonds are being exported, according to Kombadayedu Kapwanga, a director of Samicor. The announcement followed hours after the official launch of the company’s new offices in Windhoek.The company is a smart-partnership between LL Mining Corporation, the Namibian Government, a black empowerment group and the workers of the new factory.LL Mining is part of Israeli billionaire, Lev Leviev’s international group of companies.Namibia is now the third country after Angola and Russia where diamond tycoon Leviev has encroached on the business of De Beers, the South African company that has dominated diamond mining for more than a century.Mining group Anglo American PLC has a 45 per cent stake in De Beers.The Namibian Government owns 8 per cent of Samicor, while the National Youth Service holds 2 per cent and Long Life Mining Corporation (the black empowerment group) holds 10 per cent.A trust for workers of the factory has been established with a further 4 per cent of Samicor shares.The Leviev Group, a former De Beers client, estimates the Namibian concessions have at least 12 million carats with an average value of US$100 to US$160 per carat.It estimates the value of the deal at about US$1,56 billion in rough diamonds.The chief executive officer of Samicor, Eli Nephews said the company will invest more than N$317 million in Namibia through 2006.The money is to be spent on exploration and the repair and replacement of the company’s fleet, Kapwanga explained.This month Samicor will start with survey operations using its dedicated vessel the Sakawe Surveyor.However, contractors such as Trans Hex, have already been mining since December 2003, according to Kapwanga.He added that Gem farm had also been approached and will start mining for Samicor this later month.Samicor’s own Sakawe Miner is expected to start operating in May.Kapwanga said another vessel, the Sakawe Explorer was being outfitted with equipment Samicor procured from the now defunct Namco’s Sucrose vessel and that the instalment of the equipment may be completed in October.The company is expected to show a profit by 2006 when production targets will hopefully be reached.Work opportunities for 260 people of which 65 per cent are Namibians have been created.This percentage is also to be improved to 72 per cent by 2006.A sister company, LLD Diamonds, (also part of the Lev Leviev Group) is busy with the preparation of one of the biggest diamond polishing factories in Africa, said Kapwanga.The site in Windhoek should be completed by May, when the training of workers will commence.The training of about 550 workers will take about a year.Once completed the cutting and polishing factory should be able to handle up to 25 000 carats of diamonds per month.The group also has polishing plants in Russia, India, China, South Africa, Ukraine and Armenia.The Lev Leviev group stepped in to save the Namibia Minerals Corporation (Namco) which was crippled by the loss of one of its underwater mining machines in 2001.Despite an injection of about N$32 million, it could not be saved.The Samicor group was consequently founded in April 2003 and bought Namco and Island Diamond in July of the same year.The new agreement gives Samicor, which is wholly controlled by the Leviev Group through its LL Mining subsidiary in Rotterdam, 13 offshore mining licenses and 23 exploration licenses that total 14 000 square kilometres (5 405 square miles).The Leviev Group is a private company based in Ramat-Gan, Israel, and specialises in the cutting and polishing of rough diamonds.It beautifies more than US$1 billion in diamonds annually.The announcement followed hours after the official launch of the company’s new offices in Windhoek. The company is a smart-partnership between LL Mining Corporation, the Namibian Government, a black empowerment group and the workers of the new factory. LL Mining is part of Israeli billionaire, Lev Leviev’s international group of companies. Namibia is now the third country after Angola and Russia where diamond tycoon Leviev has encroached on the business of De Beers, the South African company that has dominated diamond mining for more than a century. Mining group Anglo American PLC has a 45 per cent stake in De Beers. The Namibian Government owns 8 per cent of Samicor, while the National Youth Service holds 2 per cent and Long Life Mining Corporation (the black empowerment group) holds 10 per cent. A trust for workers of the factory has been established with a further 4 per cent of Samicor shares. The Leviev Group, a former De Beers client, estimates the Namibian concessions have at least 12 million carats with an average value of US$100 to US$160 per carat. It estimates the value of the deal at about US$1,56 billion in rough diamonds. The chief executive officer of Samicor, Eli Nephews said the company will invest more than N$317 million in Namibia through 2006. The money is to be spent on exploration and the repair and replacement of the company’s fleet, Kapwanga explained. This month Samicor will start with survey operations using its dedicated vessel the Sakawe Surveyor. However, contractors such as Trans Hex, have already been mining since December 2003, according to Kapwanga. He added that Gem farm had also been approached and will start mining for Samicor this later month. Samicor’s own Sakawe Miner is expected to start operating in May. Kapwanga said another vessel, the Sakawe Explorer was being outfitted with equipment Samicor procured from the now defunct Namco’s Sucrose vessel and that the instalment of the equipment may be completed in October. The company is expected to show a profit by 2006 when production targets will hopefully be reached. Work opportunities for 260 people of which 65 per cent are Namibians have been created. This percentage is also to be improved to 72 per cent by 2006. A sister company, LLD Diamonds, (also part of the Lev Leviev Group) is busy with the preparation of one of the biggest diamond polishing factories in Africa, said Kapwanga. The site in Windhoek should be completed by May, when the training of workers will commence. The training of about 550 workers will take about a year. Once completed the cutting and polishing factory should be able to handle up to 25 000 carats of diamonds per month. The group also has polishing plants in Russia, India, China, South Africa, Ukraine and Armenia. The Lev Leviev group stepped in to save the Namibia Minerals Corporation (Namco) which was crippled by the loss of one of its underwater mining machines in 2001. Despite an injection of about N$32 million, it could not be saved. The Samicor group was consequently founded in April 2003 and bought Namco and Island Diamond in July of the same year. The new agreement gives Samicor, which is wholly controlled by the Leviev Group through its LL Mining subsidiary in Rotterdam, 13 offshore mining licenses and 23 exploration licenses that total 14 000 square kilometres (5 405 square miles). The Leviev Group is a private company based in Ramat-Gan, Israel, and specialises in the cutting and polishing of rough diamonds. It beautifies more than US$1 billion in diamonds annually.