Bloomberg News

Anglo’s Namdeb Venture Approves Funds for New Namibian Mine

March 29, 2012

Anglo American Plc (AAL)’s Namdeb Diamond Corp., a producer of the gems in Namibia, approved 280 million Namibian dollars ($36 million) of funding to build a new mine at Sendelingsdrif on the Orange River.

“The project is currently in the detailed design phase,” Chief Executive Officer Inge Zaamwani-Kamwi said today at a press briefing in the capital, Windhoek. Construction will start toward the end of 2013 and will take 18 months, she said.

Diamond producers are adding mines as prices for the stones advance. Rough-diamond prices rose 24 percent last year after climbing the two previous years as producers struggled to keep pace with consumption. The use of diamonds may grow at double the pace of supply through 2020 because of an expanding middle class in China and India, according to consultants Bain & Co.

The Sendelingsdrif project will create about 200 jobs, the CEO said. Namdeb, which plans to produce 600,000 carats in 2012, expects the new mine to produce 45,000 carats a year, she said. The diamond deposit at Sendelingsdrif is the Orange River’s largest after Daberas, where mining is being scaled down before workers and equipment are moved to the new operation, she said.

Namdeb is a venture between Anglo’s De Beers and the government of Namibia.

To contact the reporter on this story: Chamwe Kaira in Windhoek at ckaira@bloomberg.net

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net


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