Namibia's diamonds face a sparkling future
As I joined Minister Obeth Kandjoze on Monday signing a new ten-year agreement for the sorting, valuing and sales of Namdeb Holdings’ diamonds, the significance of the event was not lost on me.
This is the longest agreement ever made between De Beers and the government, and the best example yet of the strength of our unique partnership. It ensures that Namdeb Holdings’ diamonds will continue to form a significant part of the long-term supply made available by De Beers to the world’s leading diamantaires.
And with Namibian diamonds renowned for their a high quality and favourable shape, it means that this production will complement that from other countries, benefiting our customers.
Namibia is one of the world’s leading diamond producers, with Namdeb’s diamonds accounting for around US$1 billion of the supply sold by us each year.
It is the strong fundamentals of the long and successful relationship between De Beers and Namibia that has led to shared achievements and mutual benefits.
Namibia’s leaders continue to be forward-thinkers with their approach to its diamond sector, making sure that diamonds contribute to socio-economic development and underpin the long-term prosperity of the country. Goals that we at De Beers also share.
Since we began this journey together in 1994, the country’s GDP per capita has grown around 4.5% each year, on average, up to 2015. This can be attributed largely to diamonds, supported by strong governance, a solid government and a sensible approach to investment.
There are many reasons for Namibians to feel proud of this partnership. It contributes more than N$3 billion each year to the country’s revenues, more than one in every five dollars to foreign earnings and, besides the government itself, is the single largest contributor to the country’s economy.
The new agreement paves the way for the creation of an independent sales outlet that will distribute up to 15% of Namdeb’s run-of-mine production each year.
It also bolsters socio-economic development as in-country customers of Namibia Diamond Trading Company will see the value of the rough diamonds offered to them each year being more than 40% of Namdeb’s production by value. This will support local diamond businesses as more rough diamonds are cut and polished in-country. In addition, all special stones mined by Namdeb will be available for sale locally.
However, you only need to look beyond the particulars of the agreement to see the significance the De Beers/Namibia partnership continues to have.
It employs more than 2 500 people and a large number of contractors, helps build houses, promotes health care and supports local businesses and schools, all of which reinforce socio-economic development.
It is also investing around N$2.5 billion in a new state-of-the-art exploration vessel, the SS Nujoma, which will begin its search for diamonds across Namibian waters from the first half of 2017.
And the partnership is helping to find the next generation of Namibian talent through a N$10-million donation to Unam. Supporting underprivileged children with their studies goes hand-in-hand with the school-based learning programmes we sponsor, which have benefited more than 300 young Namibians.
With this new sales agreement and the shared vision of our partnership, we will ensure that the socio-economic development of the country goes from strength to strength and that Namibia’s beautiful diamonds sparkle for years to come.
*Philippe Mellier is the CEO of the De Beers Group
Philippe Mellier
This is the longest agreement ever made between De Beers and the government, and the best example yet of the strength of our unique partnership. It ensures that Namdeb Holdings’ diamonds will continue to form a significant part of the long-term supply made available by De Beers to the world’s leading diamantaires.
And with Namibian diamonds renowned for their a high quality and favourable shape, it means that this production will complement that from other countries, benefiting our customers.
Namibia is one of the world’s leading diamond producers, with Namdeb’s diamonds accounting for around US$1 billion of the supply sold by us each year.
It is the strong fundamentals of the long and successful relationship between De Beers and Namibia that has led to shared achievements and mutual benefits.
Namibia’s leaders continue to be forward-thinkers with their approach to its diamond sector, making sure that diamonds contribute to socio-economic development and underpin the long-term prosperity of the country. Goals that we at De Beers also share.
Since we began this journey together in 1994, the country’s GDP per capita has grown around 4.5% each year, on average, up to 2015. This can be attributed largely to diamonds, supported by strong governance, a solid government and a sensible approach to investment.
There are many reasons for Namibians to feel proud of this partnership. It contributes more than N$3 billion each year to the country’s revenues, more than one in every five dollars to foreign earnings and, besides the government itself, is the single largest contributor to the country’s economy.
The new agreement paves the way for the creation of an independent sales outlet that will distribute up to 15% of Namdeb’s run-of-mine production each year.
It also bolsters socio-economic development as in-country customers of Namibia Diamond Trading Company will see the value of the rough diamonds offered to them each year being more than 40% of Namdeb’s production by value. This will support local diamond businesses as more rough diamonds are cut and polished in-country. In addition, all special stones mined by Namdeb will be available for sale locally.
However, you only need to look beyond the particulars of the agreement to see the significance the De Beers/Namibia partnership continues to have.
It employs more than 2 500 people and a large number of contractors, helps build houses, promotes health care and supports local businesses and schools, all of which reinforce socio-economic development.
It is also investing around N$2.5 billion in a new state-of-the-art exploration vessel, the SS Nujoma, which will begin its search for diamonds across Namibian waters from the first half of 2017.
And the partnership is helping to find the next generation of Namibian talent through a N$10-million donation to Unam. Supporting underprivileged children with their studies goes hand-in-hand with the school-based learning programmes we sponsor, which have benefited more than 300 young Namibians.
With this new sales agreement and the shared vision of our partnership, we will ensure that the socio-economic development of the country goes from strength to strength and that Namibia’s beautiful diamonds sparkle for years to come.
*Philippe Mellier is the CEO of the De Beers Group
Philippe Mellier
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