Namibia’s rough diamond exports experienced a slight annual decline in earnings, primarily due to lower realised prices and increasing competition from lab-grown diamonds.
In the second quarter of 2024, diamond export revenues fell by 1.7% year-on-year to N$3.9 billion.
According to the Bank of Namibia’s (BoN) quarterly bulletin, this decrease is attributed to an oversupply in the midstream market and weak global demand, particularly from key markets such as the United States and China.
“On a quarterly basis, proceeds from diamonds increased significantly by N$2.0 billion, reflecting a significant increase in the volume exported relative to a typically slower first quarter,” the BoN report read.
In contrast to diamonds, BoN reported that uranium exports faced a more challenging landscape as earnings plummeted both year-on-year and quarter-on-quarter.
Revenue from uranium exports fell by 41.6% annually and 45% quarterly to N$1.8 billion.
This decline was largely due to reduced shipping capacity and container shortages, which hindered export volumes.
However, the spot market indicated a 61.2% annual increase in uranium prices, averaging US$87.88 per pound, driven by a persistent global supply deficit and rising demand for cleaner energy.
“The continued upward pressure on uranium prices reflects the persistent global uranium supply deficit combined with a higher demand for cleaner energy,” it read.
The report said other mineral exports surged, primarily due to a significant 33.7% increase in gold export earnings, which rose to N$4.1 billion.
This growth was supported by higher gold prices, fueled by expectations of interest rate cuts and increased purchases from central banks.
“The rise in gold prices was aided by increased demand due to expectations of interest rate cuts, higher purchases from central banks given its role as a store of value and safe-haven asset, and a decline in US treasury bill yields,” the report said.
