https://www.miningweekly.com
Diamonds|Energy|Export|Mining|Operations
Diamonds|Energy|Export|Mining|Operations
diamonds|energy|export|mining|operations

De Beers Namibian diamond venture gets tax break to extend operations

20th November 2020

By: Reuters

  

Font size: - +

WINDHOEK – Namdeb, a joint venture between the Namibian government and Anglo American's diamond unit De Beers Group, has been granted a holiday on royalty payments, the country's mining ministry said on Friday in bid to save jobs in the shrinking sector.

Diamonds have been mined in Namibia since 1908, but land-based operations could end in 2023, as Namdeb says it no longer made economic sense under the current tax regime.

Namdeb currently pays a 10% royalty on its sales and 55% corporate tax on its profit. The firm's chief executive said last year the royalty and tax regime for the diamond sector was too high and not conducive for an ageing, marginal asset like Namdeb.

Minister of mines and energy Tom Alwendo told the Namibian Sun newspaper that the government had "in principle" agreed with the diamond miner's request to defer royalty payments.

"As a government, we looked at the situation, including saving jobs, and have therefore agreed to the request to put a brake on royalty payments," Alwendo said.

More than 9 000 Namibians lost their jobs between April and October, according to the labour ministry. The southern African nation's small economy contracted by 11.1% in the second quarter, as Covid-19 and related lockdowns took a toll.

Diamond mining is the largest source of tax revenue in Namibia, and generates 20% of the country's export earnings.

Neither the mines minister nor officials from Namdeb would say how much the tax deferment would amount to or how long it would last.

Edited by Reuters

Comments

Latest News

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
SBS Tanks
SBS Tanks

SBS® Tanks is a leading provider of innovative water security solutions with offices in Southern Africa, East and West Africa, the USA and an...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.102 0.136s - 88pq - 2rq
Subscribe Now