Namibia is preparing to negotiate with De Beers to secure a larger stake from diamonds mined within its borders.
The current arrangement allows Namibia to retain 15% of the diamonds mined by Debmarine and Namdeb for value addition.
The agreement is set to expire in 2026, prompting discussions on potentially increasing the share that remains in the country, Minister of Mines and Energy Tom Alweendo revealed.
Alweendo said the government is already on the path to securing a greater portion of the diamond production.
“Since the last negotiation with De Beers, we already have 15% of the diamonds kept in the country for value addition. Of course, the agreement is going to end, I think, in 2026. And then… we have to renegotiate, probably, to increase that, what must be value added,” he said.
The move aligns with Namibia’s broader economic strategy, which aims to shift away from the export of raw minerals and instead focus on enhancing the domestic processing and manufacturing of its resources.
The late President Hage Geingob emphasised the shift during his address at the EU-Namibia Business Forum in Brussels.
“Namibia’s economy is intricately linked to the extraction and processing of minerals for export, contributing significantly to our GDP and foreign exchange earnings. However, we will no longer export raw minerals,” he said.
The government’s move to negotiate for a larger stake in De Beers’ diamond production comes shortly after a similar agreement between De Beers and the Botswana government.
Under the newly signed joint mining agreement, Botswana is set to immediately receive a 30% share of the rough diamonds extracted, up from the previous 25%, with the potential to increase this share to 50% within a decade.
The agreement reflects the growing trend in resource-rich nations seeking to maximise the benefits of their natural wealth.
Namibia produced 2.327 million carats of rough diamonds last year, according to latest figures released by De Beers, a 9% increase from 2.137 million carats of diamond produced the previous year.
In the period under review, Namdeb’s production increased by 14% to 468,000 carats from 412,000 carats the previous year, while Debmarine Namibia’s production for 2023 increased by 8% to 1,859 million carats from 1,725 million carats in 2022.
In Namibia, De Beers operates as a joint venture partner with the Namibian government through Namdeb Holdings, where both entities hold a 50% stake
