The announcement coincided with its full-year results, with growth driven by its jewelry brands.
De Beers, Namibia Sign 10-Year Sales Agreement
The new pact is for the sorting, valuing and sales of diamonds mined by Namdeb Holdings in the southern African nation.
Windhoek, Namibia--De Beers and the government of Namibia announced Monday that they have signed a 10-year sales agreement for the sorting, valuing and sales of the diamonds they mine in partnership there.
It is the longest sales contract De Beers has inked with Namibia, a country where it has been mining in partnership with the government since 1994. Ten years also is the same length as the contract De Beers signed with neighboring Botswana in 2011.
Under the terms of the contract, De Beers said Namibia will see a “significant increase” in rough diamonds made available for beneficiation, with $430 million (a figure index-linked to price so volumes do not decrease when prices increase) being offered annually to customers of Namibia Diamond Trading Company.
NDTC is the 50/50 joint venture between De Beers and the government that handles sorting and valuing of Namdeb Holdings’ diamonds. Namdeb Holdings, also a 50/50 joint venture, is the parent company of Namdeb, which mines diamonds on land, and Debmarine Namibia, which mines diamonds at sea.
In addition, the agreement dictates that 15 percent of run-of-mine production per year go to the government-owned independent sales company, Namib Desert Diamonds Pty. Ltd., and that all of Namdeb Holdings’ large and unusual diamonds, “special stones,” be made available for sale in Namibia.
The two parties will review the terms of the partnership after 10 years.
De Beers Group CEO Philippe Mellier said the agreement secures long-term supply for De Beers and ensures that the country’s diamonds will continue to contribute to its socio-economic development.
Obeth Kandjoze, Namibia’s mines and energy minister, said the new agreement “cements Namibia’s position as an important international diamond player and will provide further stimulus to advance our downstream industry.”
Namdeb operates a fleet of five diamond mining vessels, or “floating mines,” in the Atlantic Ocean off Namibia’s coast: mvs Debmar Atlantic, Debmar Pacific, !Gariep, Grand Banks and Mafuta. The company also has alluvial mining operations in the country’s northern and southern coastal regions.
Namdeb Holdings employs 2,500 people plus contractors in Namibia and the diamond industry is the second biggest contributor to the economy there, behind only the government.
The Latest
Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Jewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Despite the rising prices, consumers continue to seek out the precious metal.
This little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Though its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
Despite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Lilian Raji gives advice to designers on how to make the most of great publicity opportunities.
Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
The “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
The annual list recognizes young professionals making an impact in jewelry retail.
Owner David Mann is heading into retirement.
While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
Christie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
The ad aims to position platinum jewelry as ideal for everyday wear.
Retailers can customize and print the appraisal brochures from their store.
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
The deal gives the retailer control over the distribution of Roberto Coin jewelry in the U.S., Canada, Caribbean, and Central America.
Show your mother some love with a piece of fine jewelry.
The company’s Easton location will remain open.
Brian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.