Diamond Giant Extracts More Gems

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By Staff Writer

WINDHOEK

NamDeb has for the first time recorded unprecedented diamond production exceeding two million carats largely because of an increase in land-based production at the mine’s No 3 Plant and more diamonds extracted from Pocket Beaches.

The extraction of diamond production of 27 percent more gems is also being attributed to increased marine production in the year that ended 31 December 2006, stated the firm.

Diamond sales revenue increased by 34 percent to N$5.4 billion in the period under review, mainly due to the increase in carats sold in 2006 when compared to 2005 when the global alluvial diamond leader was only able to sale gems worth N$4 billion.

“The cost of sales has increased to N$3.6 billion from N$2.7 billion and this was impacted by higher equipment expenses, fuel price increases, increased mining activity, and normal inventory fluctuations,” NamDeb’s General Manager for External and Corporate Communications, Hilifa Mbako, stated in a media release issued yesterday.

Taxes for last year amounted to N$989 million, which represents an increase of 51 percent over that of 2005, while total taxation represents 76 percent of pre-tax profits of 2005.

Despite a background of substantial capital expenditure intended to lengthen NamDeb’s operations, total dividends declared to shareholders amounted to N$270 million.

These investments, apart from extending the lifespan of land-based mining will ensure continued employment of NamDeb employees.

Mbako stressed the diamond miner continues to invest substantial capital on an annual basis to find new reserves and discover ways to economically mine and treat previously “uneconomic reserves,” thereby extending the life of its land-based operations.

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