HomeDiamonds & GemstonesHopes for increase in Namibian diamond demand

Hopes for increase in Namibian diamond demand

Daberas diamond
mine in Namibia
Windhoek, Namibia — MININGREVIEW.COM — 26 January 2010 – There are hopes that the worst is over for the diamond mining sector in Namibia, and that 2010 will bring an increase in the demand for diamonds.

Namibian diamond producer Namdeb was forced to go into production holidays last year at the height of the global economic recession, but allAfrica.com quotes The Namibian Economist as reporting that the company remains optimistic. Namdeb communication manager Francis Milomo said that the increase in demand for rough diamonds was a good sign. He added that the company was planning to produce in line with demand by keeping similar production levels to those of last year.

According to Milomo, the strategies Namdeb had embarked upon to mitigate the impact of the global economic downturn on its business had become part of its scenario planning. He emphasised that it was critical that the diamond producer’s business plan was flexible enough to respond quickly to market changes that might adversely impact the diamond industry.

Milomo said Namdeb had cut back significantly on its capital expenditure over the last year and had retained its capacity to develop new diamond resources. “We do not yet envisage any new projects being constructed, and we would rather use 2010 to prepare our feasibility studies for further project development in 2011 and beyond,” he said.

“Namdeb does not have a magic number of people it would want to have, but the level of staffing would be linked to the level of production and new projects developed. We are confident that currently we have the right number of employees to execute our 2010 business plan” Milomo concluded.