Debmarine Namibia is planning to increase its contribution to the fiscus by nearly 200% to N$4.7 billion this year, up from N$1.6 billion in 2021.
The marine diamond mining company is hoping that the coming on board of its N$7 billion diamond mining vessel, Benguela Gem vessel, which it inaugurated in March this year, will help to increase its contribution to the Treasury through royalties, income tax and dividends.
The vessel is expected to boost the company’s annual diamond production by an additional 500 000 carats of diamonds.
“In 2021, Debmarine Namibia contributed N$1.6billion to the Namibian fiscus in royalties, income tax and dividends. This contribution is estimated to increase to around N$4.7billion in 2022. The increase is mainly due to the introduction of our new state of the art diamond recovery vessel, MV Benguela Gem,” Debmarine Namibia Chief Executive Officer, Otto Shikongo told a sponsorship handover of medical equipment to the Ministry of Health and Social Services.
Shikongo said positive information regarding the impact of diamond mining in the country was key in retaining interest from global buyers.
“Our diamond consumers are across the world, with the USA and China accounting for over 55% of the consumer base. These international consumers are particular about the products they buy. They want to have comfort that the natural diamonds they buy, were produced responsibly, to the benefit of the people and with due regard to the planet,” he said.
Debmarine’s forecast fiscus contribution forecasts comes as the country’s diamond production increased by 25% from 451 000 carats in Q1 2022 to 565 000 in Q2 2022 according to the Anglo American’s operation figures for Q2, bringing the country’s half year production to 1,016 000 carats, a 50% increase from 676 000 produced the same period last year, driven by the coming into operation of the Benguela Gem.
In the period under review, Debmarine’s production increased by 98% in Q2 with a production of 488 000 carats compared to 249 000 carats produced the same period last year, bringing the marine diamond mining company’s production to 863 000 for the half year, a 73% increase from 498 000 carats produced during the same period last year.
The country’s total diamond production for Q2 increased by 67% compared to the same period last year and by 50% for the half year, with 1,016 600 carats produced.