Industry News by Nemesis

Namdeb Eyes Tax Breaks to Extend Land-Based Operations in Namibia

November 25, 2019

Namdeb, a joint venture between the Namibian government and De Beers is engaging the government over tax breaks to extend its land-based operations beyond 2023, according to media reports.


Namdeb currently pays a 55% corporate tax on its profit and 10% royalty on its sales.
Company chief executive Riaan Burger wants the corporate tax and royalty revised, arguing they are high.


“While that may be conducive or viable for new diamond operators, it might not be conducive to an aging marginal asset like Namdeb,” he was quoted as saying by Reuters to local reporters.


“I think there is an understanding of the importance of Namdeb in the economy and in particular in terms of the jobs that are affected by the current short life of mine.”


Diamond mining generates 20% of Namibia’s export earnings making it the largest taxpayer in the country.


Land-based diamond operations are projected to end in 2023 and will be no longer economical to continue under the current tax regime.


Its output decreased by 7% to 400 000 carats in the third quarter as the Elizabeth Bay land operations were placed on care and maintenance late last year.


The Elizabeth Bay Mine was recently sold to a local consortium.

 

Source: Rough&Polished

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