Government Throws Struggling Namdeb a Royalties Lifeline

By John Jeffay / November 22, 2020 / www.idexonline.com / Article Link

(IDEX Online) - The Namibian government is to waive a royalty charged to Namdeb, the diamond venture it runs jointly with De Beers.The company says it needs to invest more heavily in marine explorations - which already account for three quarters of its production - as land deposits run out, but can't afford to do so.It pays a 10 per cent royalty on diamond sales and 55 per cent corporate tax on its profit.  The government has agreed in principle to Namdeb's request for a payment holiday on royalties for an unspecified time, the minister of mines and energy Tom Alwendo told the Namibian Sun newspaper. "As a government, we looked at the situation, including saving jobs, and have therefore agreed to the request to put a break on royalty payments," he said."What we made clear to them is that payment is only being deferred and not completely scrapped. As soon as they are back on their feet, we would expect them to honour their obligations."Namdeb's land operations production fell 37 per cent in H1 of 2019, to 209,000 carats. Diamonds represent a fifth of the country's exports.Pic shows a Namdeb diamond ship

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