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COVID-19 affects diamond tax

COVID-19 affects diamond tax

Niël Terblanché

 

THE tax contribution of Debmarine Namibia, the joint venture between the Namibian Government and De Beers, fell by 6% over the past year.

 

The company reported a 13% drop in production to 1.125 million carats last year as demand slumped during the COVID-19 pandemic.

 

Debmarine’s revenue fell 5% to N$6.6 billion, the company said in a statement.

 

Royalties and taxes paid to the Namibian Government also slipped by 6%, to N$2.1 billion.

 

In an effort to increase production, Debmarine Namibia has partnered with five commercial banks in a N$5.25 billion financing deal to build a new diamond mining vessel.

 

According to Debmarine Namibia, work on the purpose-built mining vessel is progressing well.

 

Construction is expected to be completed in the third quarter of 2021, while the vessel is set to start with mining operations off Namibia’s coast by the second quarter of 2022.

 

The ship will add 500 000 carats to Debmarine Namibia’s annual production, will be the seventh mining vessel in the company’s fleet.

 

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