Namdeb survival strategy revealed
N$40 billion in anticipated earnings
A series of positive engagements between the Namdeb management team and the Namibian government has enabled the creation of a mutually-beneficial new business plan that extends the life of mine by up to 20 years.
Namdeb says it can unlock upwards of N$40 billion in Namibia over the next 20 years owing to increased accretion activities along its mining licence. Land accretion in mining can refer to the reclamation of land from water bodies or low-lying areas.
The plan would involve moving back 40 billion cubic metres of water, while removing 2.2 billion tonnes of sand in a move aimed at giving Namibia’s oldest mine a renewed lease on life.
Namdeb CEO Riaan Burger shared the mine’s proposed survival strategy as the resource it mines continues to diminish on land.
Speaking at the Namibia mining expo and conference, Burger said Namdeb’s survival hinges on its ability to scale up and challenge the norms of engineering.
“Our plans for the next 20 years [are that] we are going to push the sea back another 1.4 kilometres roughly. We will pump, in the process, 40 billion cubic metres of water, over 2.2 billion tonnes of sand, and we will bring about N$40 billion into the Namibian economy,” he said.
Under the previous business plan, the land-based Namdeb operations would have come to an end in 2022 due to unsustainable economics. However, a series of positive engagements between the Namdeb management team and the Namibian government has enabled the creation of a mutually-beneficial new business plan that extends the life of mine by up to 20 years.
As part of the plan, the government offered Namdeb royalty remission from 2021 to 2025, with the royalty rate during this period reduced from 10% to 5%. This royalty remission has, in turn, underpinned an economically sustainable future for Namdeb via a life-of-mine extension that is forecast to generate a fiscal contribution for Namibia of approximately N$40 billion.
Meanwhile, the life-of-mine extension will also deliver ongoing employment for Namdeb’s existing employees, the creation of approximately 600 additional roles, ongoing benefits for community partners and approximately eight million carats of additional high-value diamond production.
The plan would involve moving back 40 billion cubic metres of water, while removing 2.2 billion tonnes of sand in a move aimed at giving Namibia’s oldest mine a renewed lease on life.
Namdeb CEO Riaan Burger shared the mine’s proposed survival strategy as the resource it mines continues to diminish on land.
Speaking at the Namibia mining expo and conference, Burger said Namdeb’s survival hinges on its ability to scale up and challenge the norms of engineering.
“Our plans for the next 20 years [are that] we are going to push the sea back another 1.4 kilometres roughly. We will pump, in the process, 40 billion cubic metres of water, over 2.2 billion tonnes of sand, and we will bring about N$40 billion into the Namibian economy,” he said.
Under the previous business plan, the land-based Namdeb operations would have come to an end in 2022 due to unsustainable economics. However, a series of positive engagements between the Namdeb management team and the Namibian government has enabled the creation of a mutually-beneficial new business plan that extends the life of mine by up to 20 years.
As part of the plan, the government offered Namdeb royalty remission from 2021 to 2025, with the royalty rate during this period reduced from 10% to 5%. This royalty remission has, in turn, underpinned an economically sustainable future for Namdeb via a life-of-mine extension that is forecast to generate a fiscal contribution for Namibia of approximately N$40 billion.
Meanwhile, the life-of-mine extension will also deliver ongoing employment for Namdeb’s existing employees, the creation of approximately 600 additional roles, ongoing benefits for community partners and approximately eight million carats of additional high-value diamond production.
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