Namibia's Diamond Output Seen Slipping in 2013 From 2012

(IDEX Online News) – Namibia’s diamond output this year is likely to show a slight decline to 1.64 million carats from 1.67 million carats in 2012, according to the Bank of Namibia.

Mining, a vital element of the country's economy, is likely to show a general slowdown, the central bank added. Namibia is the fifth-largest diamond producer in the world.

Total mining output will decline by 0.9 percent this year from 12 percent last year “owing to developments in diamond and uranium production,” the bank said in comments cited The Southern Times.

However, diamond production will rise by 2.5 percent next year, boosted by marine mining, the central bank said in an economic outlook.

“The diamond industry continues to operate at near capacity, as onshore production continues to wind-down, reducing production over the medium term," the central bank said.  “Offshore production is, thus, expected to continue to be the main source in total diamond extraction.”

Namibia is the world’s biggest miner of offshore diamonds and the fourth-largest producer of uranium.

“Some uncertainties in diamond and uranium production are expected to exert a drag on mining sector growth,” said Bank of Namibia Deputy Governor Ebson Uanguta.

“The low uranium prices and the subsequent uranium output are expected to contribute to the slowdown in other mining activities.”

The mining sector is forecast to grow by 4.4 percent next year.

Namibia’s overall economic growth is forecast to slip to 4.7 percent this year from 5.0 percent in 2012, Uanguta said.