HomeDiamonds & GemstonesDe Beers seeks royalty waiver for Namdeb

De Beers seeks royalty waiver for Namdeb

Debswana’s Daberas
diamond mine in
Windhoek, Namibia — MININGREVIEW.COM — 13 July 2009 – De Beers “’ the largest diamond mining company in the world – has asked the Namibian government to grant Namdeb, the country’s diamond producer, a waiver on royalty payments until the economic situation improves.

“We have asked the government to give Namdeb the waiver as long as the company is feeling the effects of the world economic crisis,” De Beers Namibia country manager Daniel Kali said by telephone from here.

Namdeb “’ a joint venture between the government of Namibia and De Beers “’ temporarily halted production from the beginning of April to cut costs, following a slump in diamond demand. De Beers, which is 45% owned by London-based Anglo American Plc, has been cutting output since the beginning of the year as jewellery sales plunged.

Reuters quotes Kali as saying that Namdeb has paid US$12.2 million (R97 million) in taxes to the Namibian government so far this year. “We have written to the government and we are waiting for a formal response,” he said.

The Namibian, a Windhoek-based newspaper, reports that Namdeb currently pays 10% of its revenue to the government in royalties, and is also subject to a corporate- tax rate of 55%.