Less than a Third of Namibian Diamond Cutting Factories in Use

(IDEX Online News) – Only four of Namibia’s 13 diamond cutting factories are currently operational, Namibia’s Minister of Mines and Energy, Obeth Kandjoze, told attendees at the International Diamond Conference, which is being held in the Namibian capital, Windhoek.

According to a report in The Namibian, Kandjoze attributed the downturn, which includes a reduction in employees from a peak of 2,000 to the current 700, to the global downturn in the diamond trade. This includes the August closure of Laurelton-Reign Diamonds (a joint venture between Tiffany & Co’s Laurelton Diamonds and Namibia’s Reign Investments) with the loss of 157 jobs, although Namibian Diamond Commissioner Kennedy Hamutenya said last month that it will reopen in the near future.

Industry expert Chaim Even-Zohar, who moderated one of the panels at the conference, said that despite the downturn, Namibia is still in a strong position. He argued that the country produces some of the best quality diamonds in the world, which often sell for high prices.

Namibia is a world leader in marine diamond mining, with an estimated 1.5 billion carats on its seabed. The Namibian government and De Beers have 50:50 equal shareholding in Namibia Diamond Trading Company, with De Beers supporting the domestic cutting and polishing industry in the country.