On 14 October 2022, Namdeb Diamond Corporation announced the approval of its long-term business plan (LTP) which will extend the current life of the mine from 2022 to 2042. This is a major milestone in the company’s long history and one which has significant implications, not only for the company’s employees, shareholders and local community, but also for the Namibian economy.
In his keynote address during a stakeholder engagement meeting, Hon. Tom Alweendo Minister of Mines and Energy stated: “Mining remains the backbone of our economy and is one of the largest employment sectors within our country. Government understood the fundamental impact of what the Namdeb mine closure would have had on Namibia. 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.”
Under the previous business plan, the land based Namdeb operations would have come to the end of their life in 2022 due to unsustainable economics. However, a series of positive engagements between the Namdeb management team and the Government of the Republic of Namibia has enabled the creation of a mutually beneficial new business plan that extends the life of mine by up to 20 years.
As part of the plan, the Government of the Republic of Namibia has offered Namdeb royalty remission from 2021 to 2025, with the royalty rate during this period reduced from 10% to 5%. This royalty remission has in turn underpinned an economically sustainable future for Namdeb via a life-of-mine extension that is forecast to generate a fiscal contribution for Namibia of approximately N$40 billion.
Meanwhile, the life of mine extension will also deliver ongoing employment for Namdeb’s existing employees, the creation of approximately six hundred additional roles, ongoing benefits for community partners and approximately eight million carats of additional high value diamond production.
The new long-term business plan not only provides Namdeb with a significant life extension, but also gives the opportunity to deliver on social progression in partnerships with other stakeholders. It will enable the economic transformation of the town of Oranjemund by providing an extended period during which the town is enabled to diversify and develop new economic activities.
Contributed by Namdeb