Bank of Namibia: Annual Diamond Exports Rise Sharply

Namibia’s quarterly diamond production increased 26 percent on a year-over-year basis, the Bank of Namibia reported in its September 2006 Quarterly Bulletin.  During the second quarter of 2006, diamond export earnings declined by 1 percent to N$1.8 billion (US$250 million) compared to the second quarter of 2005.

The decline in value is contrasted by an increase in the carat weight of exports.  The bank indicated this is a result of changes in output, and not due to decreasing prices of rough diamonds.

Despite the quarterly decline in diamond export receipts, diamond exports continued to have the largest share in total merchandise export earnings.  The bank did not supply a figure to demonstrate this.

However, the quarterly decline did not prevent year-over-year diamond exports from rising 59 percent from N$1.1 billion ($153 million) to about N$1.75 ($243 million).

The bank said that the good performance observed in the diamond output is underpinned by mining in the areas with good diamond resources and the favorable exchange rates.  The bank added that production of uranium, gold, lead and silver also increased by 13.6 percent, 12.3 percent, 0.2 percent and 25.3 percent, respectively, enjoying strong maximum profits from rising prices for these commodities in the international markets.