Namdeb gets royalties payment relief to extend operations beyond 2023

Namdeb, a joint venture between the Namibian government and De Beers, has been granted a royalties payment relief to help it expand its land-based operations beyond 2023.
Namibian Mines and Energy Minister Tom Alweendo was quoted as saying by the local media that Windhoek had accepted Nambed's request to get the royalties relief for an unspecified period.
He, however, said Namdeb will not be exempted from paying royalties but will be allowed to defer payment to a future date when the diamond company can pay its arrears to the treasury.
"Namdeb's land operations are essentially over and they want relief so that they can save up for their intended delving into the sea and prolong their lifespan for at least another eight years," said Alweendo.
Land-based diamond operations in Namibia, which commenced in 1908 could end in 2023 as Namdeb said they are no longer economical to continue under the current tax regime.
Namdeb pays a 10% royalty on its sales and 55% corporate tax on its profit.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished