Major commercial deal for diamond vessel

21 June 2019 | Business

In the largest commercial transactional deal this year to boost marine diamond recovery operations in Namibia, five commercial banks partnered in a N$5.6-billion financing deal to procure a new diamond recovery vessel for Debmarine Namibia.

The AMV3 is expected to create more than 161 new jobs alongside Debmarine Namibia's current workforce of 1 000 employees.

The N$5.6-billion asset financing facility constitutes 80% of the vessel cost and will be financed by Absa Bank, Bank Windhoek, Nedbank, FirstRand Bank and Standard bank Namibia.

Debmarine Namibia will cover the remaining N1.4 billion (20%) of this investment.

The facility will enable Debmarine Namibia to acquire a state-of-the-art marine diamond recovery vessel which will be custom built with world-class operational capabilities. The vessel will be used for marine diamond recovery operations off the southern coast of Namibia in the Atlantic 1 mining licence area.

The vessel is being constructed in the Damen Mangalia Shipyards in Romania and is scheduled to commence operations in 2022.

The new acquisition will be the seventh addition to Debmarine Namibia's fleet which currently comprises five diamond recovery vessels and one exploration and sampling vessel.

Speaking at the event, the CEO of Debmarine Namibia, Otto Shikongo, said that over the years they have grown the business and have increased the workforce to 1 000 employees of which 86% are Namibians.

Debmarine Namibia owns and operates five diamond recovery vessels the Debmar Atlantic, the Debmar Pacific, the !Gariep, the Grand Banks, the Mafuta, and one exploration and sampling vessel, the SS Nujoma.

Shikongo said additional to this, they charter a diamond recovery vessel, the MV Coral Sea. The annual production is now more than 1.2 million carats.

“The highest quality diamonds in the world are found in our ocean and with this investment we will be able to optimise new technology to find and recover diamonds more efficiently and meet growing consumer demand.”

According to Shikongo the new vessel will be owned by Debmarine Namibia and will be operated by competent staff of highly skilled men and women.

“Robust skills development and training programmes will run parallel to the construction of the vessel to ensure that the right people for the job are in the right places when the vessel is delivered. It will be registered at the port of Lüderitz and scheduled to commence operations in 2022.”

Shikongo said that the AMV3 will be the seventh and biggest vessel of their fleet, producing 500 000 carats per annum – an increase of 35% of their current production.

“In its first five years of production, the AMV3 is expected to contribute N$2 billion per annum in taxes and royalties to the Namibian treasury and the capital loan must still be repaid during that period.”

According to Debmarine Namibia the deal is one of the largest commercial transactions to be concluded in Namibia this year and further underscores both the government's and the De Beer Group's commitment to this successful partnership.

ELLANIE SMIT

Similar News

 

Big banks target South Africa's youth

15 hours ago | Business

Emma Rumney - South Africa's biggest banks are betting cut-price accounts, big mortgages and offers on everything from Adidas backpacks to Xboxes will help them...

Aapunguli yaGerman ya sholola

15 hours ago | Business

Omupresidende gwoGerman Bundesrat (Federal Council), Daniel Günther okwa popi kutya aapunguli yaGerman oya pyakudhukwa okupungula meliko lyaNamibia ihe omilandu dhilwe kombinga yetopolo lyeliko moshilongo odho...

Exploring the mining landscape

15 hours ago | Business

B7: What is the prevailing business landscape in your field of expertise?AB: The mining industry is one of the four pillars of Namibia’s economy, the...

The shame of our marble mines

5 days ago - 12 July 2019 | Business

Health and safety hazards, below-minimum wages, harsh working conditions and working without employment contracts are just some of the issues marble miners continue to endure...

The new era for market research

2 weeks ago - 03 July 2019 | Business

When we look at market research over time, it can be said that it has always had a special role to play in the marketing...

Chinese business presence no deterrent

2 weeks ago - 03 July 2019 | Business

Commentators are of the opinion that the presence of Chinese investors will do nothing to deter Western-aligned investors from making any investments in Namibia. This...

Rössing sale approved

2 weeks ago - 28 June 2019 | Business

The Namibia Competition Commission (NaCC) has approved the sale of Rössing Uranium Limited to the China National Uranium Corporation (CNUC), with stringent conditions.NaCC spokesperson...

NaCC approves Rössing sale

2 weeks ago - 27 June 2019 | Business

The Namibia Competition Commission has approved the sale of Rössing Uranium Limited to China National Uranium Corporation, but with stringent conditions, its spokesperson Dina Gowases...

Namibian beef finally enters Chinese market

2 weeks ago - 27 June 2019 | Business

Meatco's first consignment of Namibian beef was finally released into the Chinese market this week after it was exported in March. Namibian ambassador to China...

Singapore rejects Ohorongo deal

3 weeks ago - 25 June 2019 | Business

The planned purchase of a majority stake in Ohorongo Cement by Sino-Singaporean firm International Cement Group was rejected this week by the Singapore Stock Exchange....

Latest News

Keeping up with the neighbours

15 hours ago | Economics

LuandaYou would need around US$2 535.97 in Windhoek to maintain the same standard of living that you can have with US$7 600 in Luanda, assuming...

88 schoolgirls fall pregnant in...

15 hours ago | Education

Eighty-eight learners, including two girls in Grade 7, fell pregnant in the Oshana Region during the first term of 2019. Oshana governor Elia Irimari...

Stop blaming Aawambo - Kapofi

15 hours ago | Government

Home affairs minister Frans Kapofi has cautioned against tribalism and pointed out that there is a growing perception that only the Aawambo are beneficiaries of...

Mom begs for mercy

15 hours ago | Justice

A mother of three minor children is asking the High Court to reduce her four-year prison sentence, or fine her instead, after she pleaded guilty...

Relevant IFRS themes: Anytime, anywhere

15 hours ago | Business

A good understanding of International Financial Reporting Standards (IFRS) is crucial to the financial reporting process of IFRS reporters. Banks and Insurers in particular have...

Standard Bank faces strike vote

15 hours ago | Labour

ELVIRA HATTINGH Members of the Bank Workers Union of Namibia (Bawon) are to vote on whether to strike...

Let us tread carefully

15 hours ago | Opinion

When expectations are not met, citizens wronged in this regard should have channels, means and ways to air their grievances and have them addressed effectively.In...

Big banks target South Africa's...

15 hours ago | Business

Emma Rumney - South Africa's biggest banks are betting cut-price accounts, big mortgages and offers on everything from Adidas backpacks to Xboxes will help them...

Zim inflation almost doubles, stirring...

15 hours ago | Economics

MacDonald Dzirutwe and Karin Strohecker - Prices of cooking oil and other basics soared in Zimbabwe as inflation nearly doubled in June, piling pressure on...

Load More