Namibia, De Beers Sign 10-Yr Sales Agreement, Longest Ever

Mining and Exploration
16/05/2016 17:43

Namibia and De Beers have signed a new 10-year sales agreement for the sorting, valuing and sales of Namdeb Holdings’ diamonds. The sales agreement is the longest ever signed between the two partners and comes after more than a year of delays. Namibia will see a significant increase in rough diamonds made available for beneficiation as a result of the agreement, with $430 million of rough diamonds being offered annually to Namibia Diamond Trading Company customers. As part of the agreement, all Namdeb Holdings’ Special Stones will be made available for sale in Namibia.

In addition, the agreement provides for 15% of Namdeb Holdings’ run-of-mine production per annum to be made available to a government-owned independent sales company called Namib Desert Diamonds Pty Ltd. Namdeb Holdings accounts for 20% of Namibia's foreign currency earnings. Obeth Kandjoze, Namibia’s Minister of Mines and Energy, said: “This new agreement cements Namibia’s position as an important international diamond player and will provide further stimulus to advance our downstream industry. Meanwhile, De Beers CEO Philippe Mellier said,“This sales agreement – the longest ever between Namibia and De Beers – not only secures long-term supply for De Beers, but also ensures that Namibia’s diamonds will continue to play a key role in national socio-economic development long into the future."