Namdeb 2007 Rough Sales Fall 15% to $596 Million

Namdeb reported a 40 percent slide in 2007 pre-tax profit, hurt by a 15 percent drop in rough diamond sales as well as higher salaries and fuel costs, Reuters reported.

Pre-tax profits fell to 776 million rand ($98 million) from 1.29 billion rand, despite rough diamond production rising 4 percent to 2.177 million carats.

Diamond sales revenue was $596 million, falling 15 percent after suffering from a decline in production, a change in mix and a price correction in the second half of 2006.

In related news, Namibia and De Beers said they are close to concluding talks to increase Namibia's share in De Beers's marine operations in the country to 50 percent.

"The parties have concluded the substantive part of negotiations and are now involved in ironing out the final technical details," De Beers spokesman Daniel Kali told Reuters on Thursday.

Currently the government holds a 30 percent stake in De Beers Marine Namibia through Namdeb, in turn owned 50/50 by the government and De Beers.