Diamonds aren't forever

OGONE TLHAGE Workers at Namdeb are concerned about their future after management reportedly hinted that it intended to outsource some of its operations.Namdeb executives last week held meetings with staff at Oranjemund, where they were reportedly informed that the company would gradually cease operations at its three land-based mines, with the latest set to wind down as early as 2019.Its Elizabeth Bay mine at Lüderitz, according to a source privy to the affairs of Namdeb, is likely to be the first casualty of the slowdown in operations, followed by the Daberas mine outside Oranjemund.According to the insider, workers were told Namdeb was looking at outsourcing its operations to third-party operators in an effort to cut costs.Further compounding Namdeb’s woes were reports that mining operations were now 45% behind schedule, according to the source.“We have stopped sampling now. It seems there is no idea of where to mine anymore. We do not know where to mine effectively,” the source said. He said workers appeared upset upon hearing the news.The Namdeb management reportedly cited challenges such as declining diamond sales, the foreign exchange currency market and land-based diamond deposits that are drying up.Namdeb is Namibia’s largest taxpayer and the country’s biggest foreign exchange generator, contributing more than a fifth of the country’s foreign earnings.The company has denied the allegations, although spokesperson Pauline Thomas confirmed that its satellite operations were showing a decline. She said this was not a sign that operations would be wound down gradually.“While Namdeb’s satellite mining operations (Elizabeth Bay and Daberas Mines) have contributed significantly over the years, they are well beyond their original planned life of mine,” said Thomas.She added that a clear plan was in place to improve production at its Southern Coastal Mine.“Southern Coastal Mine is our core mining asset and we are working on a robust plan for the next five years, which includes increasing production significantly in 2018,” said Thomas.According to Thomas Namdeb was also constantly on the lookout for new mining opportunities.“We are constantly investigating new mining opportunities, however, it is equally important that we plan responsibly for the possible closure of operations that reach the end of their economic lifespan,” she said.Thomas said closure of a mining operation would only be considered as a last resort and maintained that Namdeb was committed to seeking alternative methods that would create value.“The closure of any operation is always a last resort, and we are doing everything to operate economically, which includes seeking alternative ways of creating value,” she said. Shavuka Mbidhi, Namdeb branch chairperson for the Mineworkers Union of Namibia, said the union would do everything possible to protect workers’ interests.“We hear what Namdeb is saying, but we will ensure that our workers are protected until the day that Namdeb completely closes operations,” he said.TargetsThomas also pointed out that while there had been operational glitches for much of the year, Namdeb remained on target to meet its production goals.“While experiencing challenges with the underperformance of our resource for most of the year, we have achieved nearly all our production performance matrixes. We are confident that we will end the year on a satisfactory footing,” she asserted.Shooting back, the insider described Namdeb’s response as “beautiful spin”.“They are not saying much, it is just spin,” he said. According to him, job losses at Namdeb’s Elizabeth Bay mine were imminent.Information on the Namdeb website shows that 250 people are employed at Elizabeth Bay.“What about the people at the Elizabeth Bay mine that will be without jobs? What contribution will Namdeb make if it ceases operations? What will happen to the town of Oranjemund? They are not mentioning any practical solutions and no one wants to give a straight answer,” the source told Namibian Sun.Namdeb commenced operations at its Orange River Mines at Auchas in 1990. The mining of this deposit was completed by 2000, by which time mining moved to the Daberas deposit.“During the last 10 years Daberas has proven to be a huge success, yielding healthy returns to shareholders and continues to be the mainstay of Orange River Mines,” Namdeb said.Its other operation, Sendelingsdrif, has a planning reserve comprised of 32 million tons of ore. Mining at Sendelingsdrif started in 2014 and it has an expected lifespan of 20 years. Extending the life-of-mineNamdeb launched Project 2050 in 2010 as a means to investigate business projects that have the potential to extend the life-of-mine of certain operations. According to Namdeb, while some deposits have been mined for decades, there is still scope for further value extraction of its projects.This resulted in the development of the Red Area Complex at a cost of N$150 million.The Red Area Complex is responsible for the final recovery and sorting of diamonds from concentrates produced from the various land-based diamond treatment plants within Namdeb's operations.A project has also been initiated to investigate the probability of extending the defunct Daberas life-of-mine by treating low-grade material.Namdeb was established in 1994 through a joint-venture arrangement between the Namibian government and De Beers.The agreement replaced the De Beers Group’s existing Namibian mining licences and related rights with a consolidated and rationalised mineral agreement.

Diamonds aren't forever

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Namibian Sun 2026-03-26

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Diamonds aren't forever

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Namibian Sun 2026-03-26

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