NAMDEB back in profit.

[Michael Alexander]

AT LONG LAST!

"WINDHOEK - Namdeb Diamond Corp said on Thursday that it had moved back into profit as the global recovery stoked demand for its luxury product and it was cautiously optimistic about the market picking up further.

Namdeb, Namibia's main diamond producer, is a 50-50 joint venture between De Beers, which is 45 percent owned by mining group Anglo American, and the country's government.

It said production in carats rose by 58 percent in 2010 to almost 1.5 million carats after a sharp fall in 2009 while sales were up 12 percent to just over 1.5 million carats.

After tax profit was 419 million Namibian dollars compared to a loss of N$414 million in 2009.

"We remain cautiously optimistic about the diamond market. Continued positive growth is expected albeit at a lower rate," Namdeb MD Inge Zaamwani Kamwi told a news briefing.

Kamwi said the company had taken several measures to remain afloat, including producing in line with demand and not "burning cash upfront by stockpiling."

"Actions that we took as management in response to the global economic crisis have ensured that we are still here," Kamwi said.

Diamonds are one of the mainstays of the economy of Namibia, contributing about six percent to the gross domestic product of the sparsely populated but mineral-rich nation and about 35 percent of its foreign export earnings."

[Michael Alexander]

From the Sowetan Newspaper, (Yes! I read the SOwetan)

"DIAMOND sales by Namdeb, a subsidiary of diamond mining giant De Beers, soared 49percent last year, the company said yesterday.

 
Diamond sales came to about 5 billion Namibian dollars (about R5billion) from 3,3billion Namibia dollars in 2009, when Namdeb was hit by the global economic crisis, the firm's brand manager Pauline Thomas said.

"Some 1,52 million carats worth of diamonds were sold in 2010, compared to 1,36 million carats in 2009," Thomas told reporters.

Production was also up last year, rising to 1,47 million carats compared to 929000 carats mined in 2009. After taxes and mining royalties, Namdeb made a net profit of 419 million Namibia dollars in 2010, against losses of 414 million Namibia dollars in 2009.

"We remain cautious about the diamond market in 2011. The US market is expected to continue its recovery and the exceptional growth seen in China and India is expected to be sustained," said Namdeb managing director Inge Zaamwani-Kamwi.

She told reporters that Namdeb was planning to extend operations for another four decades to 2050, but shifting mining more to marine mining offshore.

Most land mining operations would cease by 2015, but re-opening one shuttered mine and new underwater mines along 200km of coastline would prolong diamond production, Zaamwani-Kamwi said."

[Charles Scheepers]

Is that why the nob's got a big bonus and the rest got sweet @#!! $##?

[Michael Alexander]

WINDHOEK - The diamond deal that government pursued for the past three years is complete with "all partners satisfied."
De Beers country representative Daniel Kali made the announcement on the diamond deal.

Government would for the first time start to receive a more direct and significant share of proceeds from diamonds mined off the coast of the country.

Namibia has always wanted 50 percent shareholding in De Beers Marine Namibia.
Government holds about 15 percent through the joint venture diamond company Namdeb.
De Beers Group ownership in marine diamond mining operations is in excess of 80 percent.

It is a second significant victory for Namibia following the successful arguments and setting up the beneficiation and value addition of Namibian diamonds inside the country.

Not only does the deal reform the entire partnership agreement on which government has worked with the De Beers Group, but it also give the state equal control of marine diamonds.

Effectively, the new agreement re-defines the country's diamond industry since the formation of the joint venture between the state and De Beers group that formed the Namdeb entity in 1994.

Diamonds mined on land have declined significantly, with more carats being mined at sea.
In fact, last year's production of diamonds mined at sea outstripped diamonds mined on land by nearly 30 percent.

Experts believe that soon, production of marine diamond would make up nearly 50 percent of the country's total diamond mined annually.

The world economy recovery brought back the loyal buyers of diamonds in the three key markets of the United States, the Middle East and Japan, while the new wealthy class in China and India are also turned to diamonds to express their love.

Emerging markets present new business opportunities for the global diamond company, De Beers Group, and significant investments are being made to develop these markets.
In Namibia, the group is looking to expand diamond mining until 2050.

The current lifespan is until 2014, while the diamond mining licence goes until 2020.
Namdeb is looking at spending N$5 billion in the programme to extend diamond mining activities to the year 2050, with the money going into the re-investment of current mining operations, expansions and bringing onto stream new mining areas.

Among targeted mining area is the optimisation of the Elizabeth Bay mine, and extending the Orange River mine.

Yet at present, the long-term production plan remains just that, a long-term plan until the time that the mine management is able to put before shareholders the projected returns and associated risks.

The diamond sector has recovered from the global financial crisis of 2008, and Namdeb says the annual production target is back in excess of 1-million carats. "In the long term, the supply and demand dynamics of the diamond business remain attractive.

"Traditional consumer markets are recovering at the same time as demand growth in the emerging markets of China and India is expanding rapidly," said Namdeb.
For the past financial year, diamond production went up to 1,472 million carats from the 929,000 carats produced in the previous year.

Diamond carats sold amounted to 1,522 million, to generate annual revenue of N$5 billion, which is 49 percent up from last year's revenue.
Net profit for the year is N$419 million up from the N$414 million loss incurred in 2009 during the crisis.