JSE-listed construction group Raubex grew its order book to a record R20 billion in the year to February from R17.1 billion the prior year, largely on the back of N$1.2 billion Namdeb contracts awarded to the group.
B&E International (Namibia), the local unit of Raubex was awarded a 60 months contract by Namdeb, which commenced in March 2023.
Raubex has now increased its shareholding in the Namibian unit to an effective 80% shareholding after acquiring an additional 6% for N$3.8 million in cash and allocated 10% of its equity to a worker’s trust.
“The recent award of a 60-month contract with Namdeb Diamond Corporation (Pty) Ltd for the provision of mining services at Southern Coastal Mines in Namibia secures a good baseload of work over the next five years. Establishment is progressing well, and production should ramp up to full capacity in May 2023,” the construction group said.
Raubex borrowings increased by 26.5% to R1.21 billion largely to support financing requirements at Baub, a mining and exploration company it has a controlling interest in, and B&E International Namibia, which required R180 million worth of expansion capex for the Namdeb project.
Contacted for comment on the contract award and the impact of the expected works, Namdeb said, “B&E international Namibia (subsidiary of Raubex) was awarded a mining services tender during Q4 of 2022. These mining services include production and accretion stripping. This contract is critical to the life of mine extension of Namdeb and aims to increase the stripping capacity for the operation to allow for the ramp up of the mining teams in terms of the life of mine extension of Namdeb.”
Quizzed on the employment potential of the contract, Namdeb said, “the direct jobs as per the contract is 213, but total employment numbers are more; given the subcontractors and other services rendered.”
The diamond miner in 2021 announced that its board had approved a plan to extend the current life of mine from 2022 to 2042, a decision expected to save approximately 2,100 jobs and create 600 additional jobs.
Over the 20 years, it is estimated that an additional N$40 billion will flow into the fiscus as a result of the plan, with more contributed to the Namibian economy.
Namdeb’s long-term plan will result in 7.8 million carats being produced which amounts to revenue of N$159 billion benefit to Namibia and this requires approximately N$2 billion capital investment over three years.
