De Beers Namibia recently made a strategic decision to sell its Elizabeth Bay Mine and marine assets to a local consortium, Lewcor, marking a shift in ownership for the once-operating mine near Luderitz on Namibia’s southwestern coast. The sale came as a result of economic constraints that prevented De Beers Namdeb from extending the operation of the mine beyond 2019. With the sale finalized at 120 million Namibian dollars, there is potential for revenue to increase up to N$180 million as the new owners plan to restart mining activities in certain marine areas associated with the Elizabeth Bay Mine.
The sale of the mine, which was halted in September 2018, not only secures employment opportunities in the region but also boosts the local economy. Namdeb’s chairman, Chris Nghaamwa, expressed satisfaction with the sale process, highlighting the importance of selecting a buyer with the necessary expertise and commitment to meeting social and environmental responsibilities. The fact that Lewcor is a 100% Namibian-owned entity adds a positive aspect to the transaction.
Although specific details about Lewcor’s ownership structure were not immediately available, the sale of the Elizabeth Bay Mine underscores the significance of the diamond mining industry to Namibia’s economy. Currently, the industry contributes 20% of the country’s export earnings. However, challenges loom ahead as major onshore deposits are depleting, potentially leading to the closure of four mines by 2022.
The sale of the Elizabeth Bay Mine is a landmark development in Namibia’s diamond mining sector, signaling a shift towards more local ownership and sustainable economic growth. This transition not only benefits the immediate community but also has wider implications for the country’s economic landscape.
For more information on the diamond industry in Namibia, visit the Namibian. To learn more about De Beers Namibia and its operations, you can visit their official website here.
