Namibia Diamond Miners Seek Government Funding as Prices Slump
October 20, 26
(IDEX Online) - Namibia's two main diamond mining companies, the land-based miner Namdeb and offshore operator Debmarine Namibia, have asked the government for financial assistance as falling diamond prices erode revenues.
Namdeb Holdings, the holding company that owns both operating companies, approached the government in September seeking recapitalization.
Finance minister Ericah Shafudah revealed the request on October 15, but said the amount required had not been finalized.
Namdeb Holdings is a 50:50 joint venture between the Namibian government and De Beers.
Shafudah said the request marked a sharp change for a sector that had traditionally provided the government with substantial dividends and tax revenues.
"At one point, you could even get N$5 billion ($290 million) a year from the diamond sector. Now, as I'm speaking, the two companies in the diamond sector are now seeking relief from the government," she said.
Namdeb chief executive Riaan Burger said revenue was 60% below the company's forecast before diamond prices began falling. At the 2026 Mining Expo, he said the decline had wiped out nearly N$13 billion ($760 million) in net present value.
Namdeb Holdings has not disclosed how much additional capital it is seeking or how the money would be used. Shafudah said the proposal remained unfinished, while Namdeb spokesperson Grace Luvindao declined to comment, citing ongoing internal processes and discussions.
Board chair Alex Gawanab said sustained low prices had put the business under pressure and that management was exploring ways to sustain operations. He added that contingency plans had been prepared for worst-case scenarios.
The financial strain follows a broader decline in Namibia's diamond industry. De Beers' tax and royalty contributions to the government fell 11% in 2024 to $545 million. Namibia's diamond production declined 4% that year to 2.2 million carats.
The government has previously sought to support the sector through lower royalties. In 2021, it reduced the royalty rate for Namdeb from 10% to 5%. In 2025, Namibia's central bank governor called for the reduction to be extended to 2042, covering the remaining life of the company's mines.
Offshore operations are particularly important to Namibia's diamond production. Debmarine accounts for about three-quarters of the country's output, but cut production by 13% in 2024 amid weaker demand and competition from lower-priced rough diamonds from Angola.
Pic shows the Debmarine vessel Benguela Gem.