No investors for gem processing centres

TWO gemstone-processing centres – one at Karibib and another at Keetmanshoop – run the risk of becoming white elephants if investors are not found to get the operations running, Minister of Trade and Industry Immanuel Ngatjizeko has said.

Built by the Offshore Development Company (ODC) more than two years ago, the centres are not serving their intended purpose because of a lack of investment and access to sufficient raw materials. The two centres were built to help small miners to cut, polish, brand and value their gemstone products At Karibib, the centre and equipment were to be leased to private investors interested in gemstone cutting and polishing.But to date no activities have taken place at the centre.Ngatjizeko told the National Assembly on Thursday that this was because of a lack of access to the quantity of gemstones needed to run a profitable business.This problem, he said, was faced by local and foreign groups as well as small miners.A similar centre was built at Keetmanshoop and was operational for a while before insufficient mineral supply forced its closure.Ngatjizeko said at the time the two centres were built, an agreement was entered into with a US investor who was going to join forces with small miners at both towns.The investor was to equip the two centres, provide funding and expertise to run the operations, brand and market the finished products in the US and other markets, and assist small miners to make use of the centre to cut, value and market their stones.However, operations stopped last year because of the insufficient supply of gemstones to sustain commercial operations.Ngatjizeko said the Ministry of Trade had been successful in applying for a mining concession at Karibib, directly linked to the centre, and it was hoped that this supply would supplement purchases from other local suppliers.However, the deal fell through and the investor only equipped and got the Keetmanshoop centre up and running for a short while.The Minister pledged to have both centres equipped and ready for use during this financial year.He said miners at Keetmanshoop had received training from experts in gemstone cutting and polishing during the time that the centre was operational.His Ministry hoped to secure training from international experts for Karibib miners too.Negotiations are underway with a farmer in the Keetmanshoop area on whose farm mining claims are located to secure access to gemstones.”Even before the construction of the two centres, my ministry has made the promotion of gemstone processing an important part of its overall investment promotion and industrial development strategy,” said Ngatjizeko.He said discussions were currently underway with local and international interested parties to get the centres operational.Ngatjizeko said the success of the centres depended not only on getting them equipped but also on access to mineral deposits.”Exports of unprocessed mineral will negate our efforts to develop local mineral-processing industries,” he said.The Minister was responding to questions posed by the UDF’s Michael Goreseb.The two centres were built to help small miners to cut, polish, brand and value their gemstone products At Karibib, the centre and equipment were to be leased to private investors interested in gemstone cutting and polishing.But to date no activities have taken place at the centre.Ngatjizeko told the National Assembly on Thursday that this was because of a lack of access to the quantity of gemstones needed to run a profitable business.This problem, he said, was faced by local and foreign groups as well as small miners.A similar centre was built at Keetmanshoop and was operational for a while before insufficient mineral supply forced its closure.Ngatjizeko said at the time the two centres were built, an agreement was entered into with a US investor who was going to join forces with small miners at both towns.The investor was to equip the two centres, provide funding and expertise to run the operations, brand and market the finished products in the US and other markets, and assist small miners to make use of the centre to cut, value and market their stones.However, operations stopped last year because of the insufficient supply of gemstones to sustain commercial operations.Ngatjizeko said the Ministry of Trade had been successful in applying for a mining concession at Karibib, directly linked to the centre, and it was hoped that this supply would supplement purchases from other local suppliers.However, the deal fell through and the investor only equipped and got the Keetmanshoop centre up and running for a short while.The Minister pledged to have both centres equipped and ready for use during this financial year.He said miners at Keetmanshoop had received training from experts in gemstone cutting and polishing during the time that the centre was operational.His Ministry hoped to secure training from international experts for Karibib miners too.Negotiations are underway with a farmer in the Keetmanshoop area on whose farm mining claims are located to secure access to gemstones.”Even before the construction of the two centres, my ministry has made the promotion of gemstone processing an important part of its overall investment promotion and industrial development strategy,” said Ngatjizeko.He said discussions were currently underway with local and international interested parties to get the centres operational.Ngatjizeko said the success of the centres depended not only on getting them equipped but also on access to mineral deposits.”Exports of unprocessed mineral will negate our efforts to develop local mineral-processing industries,” he said.The Minister was responding to questions posed by the UDF’s Michael Goreseb.