Namibia's Diamond Output To Maintain Growth in 2018 Before Contracting

Mining and Exploration
10/07/2018 13:30

Namibia's diamond mining industry is estimated to maintain a high growth level during 2018 before contracting in 2019 due to the depletion of onshore diamond deposits, according to the Bank of Namibia's economic outlook for July 2018. The sector's projected growth is 10.9% in 2018, which is reasonably high, despite a slowdown from 12% in 2017. The diamond sector is, however, expected to contract by 5.3% in 2019 due to lower production from onshore mines during that year. “In this regard, the Elizabeth Bay mine near Lüderitz is expected to close down because it has not generated any profits in recent years." The bank anticipates that Debmarine Namibia, De Beers’ offshore-mining partnership with the government, is expected to increase output significantly in the medium term, keeping the growth outlook for diamond mining positive from 2021, going forward.

Growth in the diamond processing subsector is expected to slow down during 2018 given the high base set in the last two years, the report states. Namibia's diamond manufacturing industry is projected to grow by 4.6 percent and 3.2 percent in 2018 and 2019, respectively.