De Beers: After Botswana Deal, Namibia Could Seek Bigger Share
July 05, 23
(IDEX Online) - The government of Namibia could seek an increased share in its sales agreement with De Beers, after the mining giant agreed a phased move to a 50/50 split with Botswana.
Namdia, the state-owned diamond company currently receives 15 per cent of the diamonds produced by Namdeb, the 50/50 joint venture between the government and De Beers.
The 10-year agreement expires in May 2026. Namibia is De Beers' second biggest diamond-producing country, after Botswana, with a output of 2.3m carats in the year to the end of Q1 2023.
In April, Namibia's mines and energy minister Tom Alweendo told reporters: "Right now we are at 15 per cent, and therefore, when we review the agreement, we would also look at increasing the 15% to something else."
That was before De Beers announced new agreements with Botswana, which will, in a decade, double its share of diamonds from 25 per cent to 50 per cent, and guarantee mining rights for 25 years.
Diamonds recovered on land by Namdeb and at sea by Debmarine, account for over half of Namibia's mining exports and tax revenues.
Fifteen per cent of diamond production is allocated to Namdia and 35 per cent is allocated to the local cutting and polishing industry.
Pic, courtesy De Beers, shows Orange River Mine, Namibia