Namdeb seeks tax breaks to extend operations
WINDHOEK – Namdeb, a joint venture between the Namibian government and Anglo American's diamond unit De Beers Group, said on Thursday it was in talks with the government about tax breaks to extend its land-based operations beyond 2023.
Diamond mining is the largest taxpayer in Namibia and generates 20% of the Southern African country's export earnings.
Diamonds have been mined in Namibia since 1908, but land-based operations could end in 2023 as Namdeb says it is no longer economical to continue under the current tax regime.
Anglo American results show that its land operations in Namibia produced 209 000 ct in the first six months of 2019, 37% less than the first half of last year.
Namdeb currently pays a 10% royalty on its sales and 55% corporate tax on its profit.
CE Riaan Burger told reporters the royalty and tax regime for the diamond sector were fairly high.
"While that may be conducive or viable for new diamond operators, it might not be conducive to an aging marginal asset like Namdeb," Burger said, adding he was confident that the government would grant the company a waiver, particularly for the royalty.
"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," he said.
Namdeb earlier this year sold its Elizabeth Bay Mine and associated marine assets to Lewcor, a Namibian consortium.
It had explored options to extend the life of the mine but could not find a way to make it profitable.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Electrifying the world in a safe, smart, and sustainable way, ABB Electrification is a global technology leader in electrical distribution and...
VISIT SHOWROOM
Established in 1933, EKATO is the world leader in agitation technology, supplying agitators for processes and applications such as chemicals and...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
