INTERNATIONAL - Namdeb, a joint venture between the Namibian government and Anglo American’s diamond unit De Beers Group, said on Thursday it was in talks with the government about tax breaks to extend its land-based operations beyond 2023.
Diamond mining is the largest taxpayer in Namibia and generates 20 percent of the southern African country’s export earnings.
Diamonds have been mined in Namibia since 1908, but land-based operations could end in 2023 as Namdeb says it is no longer economical to continue under the current tax regime.
Anglo American results show that its land operations in Namibia produced 209,000 carats in the first six months of 2019, 37% less than the first half of last year.
Namdeb currently pays a 10 percent royalty on its sales and 55 percent corporate tax on its profit.