Namdeb extends diamond mining at Oranjemund by another 20 years

Namdeb announced its long-term business plan earlier this month, confirming it would mine diamonds on land at Oranjemund for another twenty years. Had this plan not been developed, the mining of land diamonds would have ended at the end of 2022.

News of the extension of the mine’s life to 2042 is welcomed news for technical service providers and other contractors from across Namibia, including those operating from Walvis Bay (some 600 contractors are currently working at the mine).
For the job seeker in the mining industry the news is also welcomed as another 600 jobs will be added to Namdeb’s existing staff complement of 2 100 (1 500 employees + 600 contractors).
The launch of the long-term business plan was launched at Namdeb headquarters in Windhoek last Thursday with delegations of the de Beers Group, Namdeb, Debmarine Namibia, the Namibia Diamond Trading Company, and the Chamber of Mines of Namibia in attendance.
The list of Government delegates included the Minister of Mines and Energy, Tom Alweendo, and Finance Minister Iipumbu Shiimi in attendance. Minister Alweendo deliver the keynote address, followed by the CEO of Namdeb, Riaan Burger, and the CEO of De Beers, Bruce Cleaver, also addressing guests.
Minister Alweendo said the closure of the mine at the end of 2022 would have had devastating consequences for the entire Namibian economy. It would have led to direct job losses, loss of secondary employment, and the town of Oranjemund could have become a ghost town overnight.
It would have reduced the country’s Gross Domestic Product and Government income in the form of royalties and taxes would have been impacted.
Government as the majority partner in Namdeb had to make a sacrifice as part of this long-term plan. It had to cut its royalty rate from 10 % to 5 % for the period 2021 to 2025.
This royalty reduction would free up approximately N$40 billion for Namdeb, and enable the company to invest in its mining operations. Over this twenty years period another 7,8 million carats of diamonds will be mined on land at Oranjemund, generating a gross income of N$159 billion.
Burger said production will ramped up by approximately 160 % of the current capacity over the period of the next two and a half years. It requires a capital spending of N$1,8 billion.
Government revenue would amount to N$40 billion over this twenty years period, according to Burger.
The life of mine extension by another twenty years will also afford Oranjemund time to diversify its economy and the //Kharas Region will also benefit.
Cleaver in his address said another 600 jobs will be created and Namibia would remain relevant for another two decades as one of the world’s foremost diamond producers and exporters.

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