Namibia’s high-quality diamonds difficult to mine

THE high average price of Namibian diamonds is due to the high cost of mining the gems, DeBeers Group chief executive officer Bruce Cleaver told The Namibian in a telephonic interview yesterday.

According to the group’s six-months operational review for the period ended 30 June this year, key indicators showed that Namibian diamonds averaged N$7 383 (US$568) per carat. Production volumes were 863 000 at a mining cost of N$3 080 (US$237) per carat.

This is in comparison to an average price of N$2 144 (US$165) per carat for a Debswana diamond at N$338 (US$26) cost of mining per carat with a production volume of 11 124 000.

“They are higher-quality diamonds than the average. They are beautiful diamonds, and we are very happy with them. But they are much more expensive to mine than everywhere else,” Cleaver stated.

Despite the recent economic climate Namibia faced, he said the past three years have seen the biggest diamond sales for the company.

On allegations of Namdia underpricing diamonds, the CEO said he had no knowledge about what goes on in the 100% state- owned company, and could therefore not comment on that.Regarding the SS Nujoma exploration vessel, Cleaver said its use will not directly contribute to an increase in diamond production volumes, but that it will allow De Beers to mine the resource more efficiently and for a longer period.

He added that the vessel does not mine diamonds, but goes in front of the mining vessel, and based on the samples it takes, decisions can be made on the best and correct areas to mine.

“It allows data for the samples to be processed fast enough for us to put another ship out to sea, and that could lead to more production. It will just lead to much more sustainable and profitable production,” Cleaver noted.

On corporate social responsibility, the group’s latest ‘Report to Society’ said they have injected more than N$80 million into community development programmes.

Cleaver said that he believes they will spend a similar amount in community projects next year.