Namdeb Doubles Profits to $42.5 Million

Namdeb, Namibia’s top diamond producer, earned $42.5 million in 2006, up from $17 million in 2005. Diamond sales in 2006 totaled $738 million, compared to $543 million a year earlier.

Diamond production exceeded two million carats for the year, according to Namdeb, and carats sold increased 27 percent following more land and marine production at the company’s No. 3 Plant, Pocket Beaches, and other sites.

Increased mining activity raised sales costs by 33 percent, the company added.

“Profit before tax increased to N$1.3 billion ($181 million) compared to N$777 million ($108 million) in 2005, a 67 percent improvement due to the increased sales volume, mix, and favorable exchange rate,” according to Namdeb’s statement.

Taxation amounted to N$989 million ($138 million), compared to N$655 million ($91 million) in 2005, while “cash used in investing activities” rose 124 percent.

Namdeb is a 50:50 joint venture between the government of Namibia and De Beers.