N$12m to protect diamond industry

THE Ministry of Mines and Energy has set aside N$12,7 million to protect the local diamond industry against illegitimate activities during the financial year 2018/19.

The funds are for the monitoring, regulation and facilitation of the industry.

Deputy minister of mines Kornelia Shilunga said this in her budget motivation speech last week for the period under review, adding that in realising the speedy evolvement of the diamond industry, the ministry had started a review process of the Diamond Act to ensure that the law governing the industry is responsive to the industry’s dynamics.

“In ensuring that the diamond industry remains protected against illicit activities, Namibia must adhere to the minimum requirements of the Kimberley Process certification scheme and international best practices, thereby upholding a good image of Namibian diamonds and meeting international market standards,” she stated.

Shilunga said the mines ministry hosted the Kimberly Process certification scheme review last September, which confirmed that Namibia was compliant with the Kimberly Process requirements, and thus continued to trade in its diamonds, which were certified as conflict-free.

During the 2017/18 financial year, over 240 000 carats of diamonds worth N$4,4 billion were processed locally at the Namib Desert Diamonds company and local sightholders, compared to diamonds worth N$3,5 billion processed during the 2016/17 financial year.

“This has yielded an increase in the beneficiation activities, and enabled Namdia to fulfil its mandate. A significant improvement of rough diamonds converted into polished gems has been observed due to the monitoring, reporting and stakeholder engagement by the ministry in driving the beneficiation agenda,” she said, adding that 54% of rough diamonds offered to sightholders had been processed locally.

The country’s diamond production for the 2017/18 financial year was just over 1,8 million carats.

In order to improve unemployment in rural Namibia, the mines ministry supports a slate processing facility at Noordoewer in the //Karas region at which 13 workers are employed, Shilunga noted.

The ministry also set aside N$36,7 million for the promotion of investments in exploration and mining, to ensure the safeguarding of mineral resources, investment promotion, the well-being of employees in the industry, as well as revenue collection.

“Of this amount, N$35,29 million is earmarked for operational expenditure under this programme. An amount of N$1,4 million is allocated for development projects, and is earmarked for small-scale miners’ projects at Khorixas and Noordoewer,” the politician added.

Epangelo Mining Company will receive N$12 million from the operational budget as a government subsidy, she said.

The mines ministry’s budget for the 2018/19 financial year is N$264,3 million.