Namibia Predicts Diamond-Sector Slowdown

RAPAPORT... Economic growth from Namibia's diamond-mining sector willslow this year due to depletion of resources from inland deposits, its nationalbank said. While the industry's contribution to gross domestic product(GDP) will increase 11% in 2018, that rise is less than last year's 12% jump, accordingto data the Bank of Namibia released in a July report. "Growth for diamond mining is expected to be lower during2018 compared to 2017 as onshore production volumes are declining," the banksaid. For instance, Namdeb, a joint venture between De Beers andthe nation's government, will close the Elizabeth Bay mine as it has notgenerated any profit in recent years, the central bank added. GDP from the sector will subsequently contract 5% in 2019and 8% in 2020, the organization predicted. However, increased production from Debmarine Namibia, DeBeers' offshore-mining partnership with the government, is likely to compensatefor the difference, lifting GDP contribution back to positive growth from 2021onward. The bank also expects a slowdown in the diamond-processing sector- including sorting and cutting - following strong growth in 2016 and 2017. Thecategory's contribution to GDP will go up 4.6% in 2018 as opposed to 15% in2017, it forecast.Image: Namdeb