Namibia boasts 75 million carats of the richest marine diamond deposits globally. About 80% of production comes from marine sources. While production fell by 4% in 2024, strategic actions are in place for recovery. Anglo American plans to separate De Beers to maximize value, and consumer demand shifts may favor natural diamonds amid falling lab-grown prices.
Namibia possesses the richest marine diamond deposits globally, with approximately 75 million carats estimated in about 1.0 million square kilometers of seabed. These marine resources account for around 80% of the total diamond production and 94% of the diamond resources, as reported by the Anglo American 2024 Integrated Report. Anglo American, which owns De Beers, operates mining through a 50:50 joint venture with the Namibian government, focusing on both land-based diamonds, Namdeb, and offshore mining, Debmarine Namibia.
In 2024, Namibia’s diamond production decreased by 4% to 2.2 million carats, compared to 2.3 million in 2023. This decline is attributed to deliberate efforts to lower production at Debmarine Namibia, which saw a 13% year-on-year decrease. This drop was slightly balanced by increased higher-grade mining and improved recovery rates at Namdeb. De Beers is responsible for about one-third of the world’s rough diamonds by value, primarily sourced from Botswana, Canada, Namibia, and South Africa.
De Beers also runs a 50:50 joint operation, Debswana, with the Government of Botswana, which encompasses one of the wealthiest diamond mines, Jwaneng, and another, Orapa, noted for its substantial total resources. Anglo American is exploring a dual-track strategy (either divestment or demerger) to detach the De Beers brand from the group, aiming for strategic flexibility and enhanced value for both Anglo American and the Government of Botswana.
The separation will facilitate De Beers in executing its origins strategy from May, focusing on four primary pillars while streamlining operations to reduce overhead costs by $100 million. The report anticipates increased demand from the U.S., India, and other markets, reducing midstream inventories. Retail restocking is projected to gain momentum from new diamond marketing efforts and improving economic conditions, notably in China.
Simultaneously, wholesale prices for lab-grown diamonds are experiencing a decline due to increasing stock levels in India and China. This reduction in prices is expected to enhance consumer awareness of the differences between lab-grown and natural diamonds, prompting U.S. retailers to shift focus back to natural diamonds as market incentives shift in favor of them.
Namibia’s marine diamond reserves are the richest in the world, with significant production contributions from both marine and land-based sources. Although production has decreased, the strategic partnership between De Beers and the Namibian government positions the sector favorably. With shifting market dynamics, especially in consumer preferences towards natural diamonds, and ongoing corporate restructurings, the future of diamond mining in Namibia and globally appears to hold potential for increased value.
Original Source: www.observer24.com.na
