Namdeb eyes extension of land-based operations to 2042

Namdeb Diamond Corporation, a 50/50 joint venture between De Beers and the Namibian government, has approved a new long-term business plan that will extend the current life-of-mine of its land-based operations to 2042.
The land-based Namdeb operations would have come to the end of their life at the end of 2022 due to unsustainable economics.
De Beers said, however, a series of positive engagements between the Namdeb management team and Windhoek has allowed the creation of a mutually beneficial new business plan that extends the life of mine by up to 20 years.
The government of Namibia offered Namdeb royalty relief from 2021 to 2025, with the royalty rate during this period reducing from 10% to 5%.
This royalty relief, said De Beers, has, in turn, underpinned an economically sustainable future for Namdeb via a life of mine extension that, through the additional taxes, dividends and royalties from the extended life of mine, is forecast to generate an additional fiscal contribution of about N$40-billion for Namibia.
“This new business plan, forged by Namdeb management and enabled by the willingness of government to find a solution in the best interest of Namibia, means that Namdeb’s future is now secure and the company is positioned to continue making a significant contribution to the Namibian economy, the socio-economic development of the Oranjemund community and the lives of Namdeb employees," said De Beers chief executive Bruce Cleaver.
Namibia’s mines Minister Tom Alweendo said Namdeb mine’s closure at the end of 2022 would have had a serious impact on Namibia’s economy.
“Therefore, it was imperative to safeguard this operation for the benefit of sustaining the life of mine for both the national economy as well as preserving employment for our people and the livelihoods of families that depend on it,” he said.

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