The De Beers Group contributed over N$12.5 billion to Namibia’s tax revenue and economy in 2022, the company’s sustainability report has revealed.
During the review period, the diamond giant paid a total of N$4.8 billion in taxes and royalties to the Namibian government.
Currently, diamond companies in Namibia are subject to a 10% royalty on sales and a 55% corporate tax on profits.
Furthermore, the report highlights that De Beers spent over N$163 million in Namibia as part of its social investment initiatives last year.
The report also states that rough diamonds worth N$5.7 billion were sold to Namibian sightholders for beneficiation purposes.
Sightholders are authorized bulk purchasers of rough diamonds, and Namibia currently has 11 sightholders.
The group’s Namibia operations produced 2,137 million carats of rough diamonds last year according to De Beers, a 46% increase from 1.467 million carats in 2021.
The surge in the country’s production was attributed to the coming into operation of the N$7-billion diamond recovery vessel, Benguela Gem, which was inaugurated in March last year and the treatment of higher-grade ore at the land operations.
In the period under review, Debmarine Namibia saw a 52% increase in diamond production in 2022, reaching 1,725 million carats compared to 1,137 million carats in 2021.
Namdeb, the operator for land-based diamond mines, experienced a 25% increase in production, reaching 412,000 carats compared to 330,000 carats the previous year.
Notably, Namdeb recorded a remarkable 144% surge in production during the fourth quarter
In 2022, the total output of the Anglo American diamond unit, which includes De Beers, reached 34.6 million carats, a 7% increase from the 32.3 million carats produced in 2021. This surpassed the production guidance range of 32 million to 34 million carats.
Looking ahead, De Beers has set a production guidance of 30 million to 33 million carats for 2023, with an average production cost of US$80 per carat.
In Namibia, De Beers operates as a joint venture partner with the Namibian government through Namdeb Holdings, where both entities hold a 50% stake.
Namdeb manages the land-based diamond mines, while Debmarine operates the offshore licenses.
