Diamond production drops 5% in second quarter Chamwe Kaira  Diamond production in Namibia dropped by 5% in the second quarter of 2025, falling to 535,000 carats from 561,000 carats in the first quarter.  According to De Beers’ second quarter production report, the decline followed planned actions to reduce output at Debmarine Namibia. In total, Namibia produced 1,166,000 carats in the first half of 2025, down from 1,194,000 carats during the same period in 2024. De Beers said that after a fleet optimisation study, the Coral Sea vessel was retired, and the Grand Banks vessel was taken out of service, awaiting a decision on possible decommissioning or sale.  “This was partially offset by planned mining of higher-grade areas at Namdeb,” the report stated. De Beers operates in Namibia through joint ventures with the government, including Namdeb land operations, Debmarine Namibia, and the Namibia Diamond Trading Company. The report showed that production in Botswana fell by 44% to 2.7 million carats. The decrease was due to extended maintenance at Orapa and reduced output, which included putting the Letlhakane Tailings Treatment Plant on care and maintenance. Jwaneng production remained steady. In South Africa, output rose by 17% to 0.6 million carats. This increase came from processing higher-grade underground ore at the Venetia underground project. However, the volume remains lower than previous open-pit operations, and capital spending has been delayed amid weak market conditions. Production in Canada dropped by 46% to 400,000 carats, driven by planned treatment of lower-grade ore. Rough diamond trading remained difficult in the first half of 2025. De Beers said improved industry sentiment at the end of the first quarter helped stabilise polished diamond prices. But uncertainty around US tariffs announced in April slowed polished trading. Despite these issues, consumer demand for diamond jewellery remained broadly stable. De Beers has kept its 2025 production guidance unchanged at between 20 and 23 million carats.  “De Beers continues to monitor rough diamond trading conditions and will respond accordingly,” the report noted. The company also confirmed that the formal process for its sale is progressing despite the current market environment.

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Namdeb plans to upscale wind plant to 150MW CHAMWE KAIRA  Namdeb plans to upscale its planned 34 MW wind plant to 100-150 MW. Corporate affairs manager Grace Luvindao said the intent of the recent MoU signed with NamPower is to upscale the project to a significantly larger wind energy facility that is connected to the NamPower electrical grid.  “Initial indications are that the facility can be upscaled to between 100-150MW, however this will be confirmed as the study progresses. The capital cost and the funding for the project will be determined once the study phase of the project is nearing completion.” Luvindao said at present, Namdeb does not operate any large-scale renewable electricity plants. However, Namdeb has installed a rooftop solar system for its offices in Oranjemund and is investigating expanding the rooftop solar installations. “In addition, Namdeb has installed a solar radiation measurement system in its mining area to determine the potential of a photovoltaic solar plant and will be conducting a feasibility study once 12 months of data has been collected in the second part of the year,” she added. Luvindao said Namdeb is committed to reducing its carbon emissions as part of its sustainability programme and has developed a fully fledged programme. She explained that Namdeb’s Scope 1 (fossil fuels) and Scope 2 (electrical) emissions have been baselined to determine the contribution of each operational activity to Namdeb’s overall carbon footprint. Furthermore, she said that, to address Scope 1, Namdeb is executing an electrification strategy by implementing an alternative mining system that is powered by electrical energy rather than fossil fuels to reduce its fuel consumption. “Once the mining operation is mostly electrified, Namdeb is positioning itself to source the maximum amount of its electrical energy from renewable sources, which is aligned to Scope 2.” In addition, Luvindao said moving from the Eskom electrical grid to the NamPower grid has a positive effect on carbon emissions, as the grid intensity factor (that is, the CO₂ produced per kWh of electricity consumed) for the NamPower grid is much lower than Eskom’s. “This is due to the fact that NamPower sources a larger proportion of its electricity from renewable sources, such as the Ruacana Hydro-electric Power Station. The combination of these projects results in a significant reduction in carbon emissions by 2030,” she said. Recently, Namdeb and NamPower signed a Memorandum of Understanding (MoU) to facilitate collaboration on the development and integration of renewable electricity projects into the national grid and Namdeb’s mining operations efforts. The proposed development site is located approximately 45 km north of Oranjemund, within Mining License 43, where Namdeb is developing a 34 MW wind power plant and is the sole off-taker of the electricity generated. Namdeb CEO Riaan Burger said the company’s ambition to become carbon neutral is backed by tangible actions. Namdeb introduced its first battery-electric bus in 2023 to start electrifying its vehicle fleet. NamPower’s objective to source at least 70% of energy from renewable energy by 2030 aligns well with Namdeb’s goal of becoming carbon neutral within the same timeframe.

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Namdeb, Nampower join forces on renewable energy Namdeb and the Namibia Power Corporation (NamPower) have formalised an agreement aimed at fostering collaboration on the development and integration of renewable electricity projects into the national grid as well as Namdeb’s mining operations. The agreement was signed by Namdeb chief executive Riaan Burger and NamPower managing director Kahenge Haulofu in Windhoek on Wednesday. Namdeb communication manager Grace Luvindao in a statement says this partnership underscores Namdeb’s commitment to achieving carbon neutrality and making a meaningful contribution to Namibia’s national decarbonisation efforts. The proposed development site for the projects is located approximately 45 kilometres north of Oranjemund within mining licence 43, where Namdeb is in the process of developing a 34-MW wind power plant. “Namdeb will act as the sole off-taker of the electricity generated, presenting an opportunity to upscale the project and connect it to the NamPower grid,” Luvindao says. “This agreement signifies more than a partnership; it is a statement of intent to power progress responsibly and sustainably,” Burger says. He highlights the introduction of Namibia’s first battery-electric bus in 2023 as part of efforts to electrify the vehicle fleet, contributing to Namdeb’s journey towards carbon neutrality. Through this initiative, Namdeb intends to electrify its mobile equipment as much as feasible over time, aiming to power its fleet with renewable energy and reduce fossil fuel reliance. The Kerbehuk Wind Facility represents a significant milestone in this endeavour, with the potential to replace nearly half of the company’s high carbon-intensity electricity. “This collaboration with NamPower not only supports our operational goals but also strengthens Namibia’s energy independence and climate resilience,” Burger says. According to Haulofu, there is a strong alignment between NamPower’s objective to derive at least 70% of its energy from renewable sources by 2030 and Namdeb’s goal of becoming carbon neutral within the same timeframe. He acknowledges that collaboration with various partners is a core aspect of NamPower’s strategy and expressed pride in furthering the national vision of sustainability through this project. “This agreement will indeed pave the way for more partnerships,” says Halofu. Namdeb, jointly owned by the Namibian government and the De Beers Group, remains dedicated to aligning its operations with national priorities concerning industrialisation, clean energy transition, and sustainable development. The signing of this agreement marks a pivotal step forward in securing a greener and more inclusive energy future for Namibia. The post Namdeb, Nampower join forces on renewable energy appeared first on The Namibian.

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Namdeb woes  pushes down government revenue forecast CHAMWE KAIRA  The government has revised down its revenue projections for the 2024/25 financial year to N$90.9 billion, a 1.3% decrease from earlier estimates.  The decline is mainly due to lower returns from state-owned enterprises, especially Namdeb Holdings. Budget documents from the Ministry of Finance show that dividends from SOEs fell by 75.7% to N$561 million. This was largely caused by Namdeb’s underperformance and the delay in receiving N$1.6 billion from the planned dissolution of Namibia Post and Telecommunication Holdings. Meanwhile, central government expenditure was left unchanged from earlier estimates, resulting in a revised budget deficit of 3.9% of GDP, up from 3.2% estimated by the minister in both February 2024 and October 2024. When compared to the previous fiscal year, Central Government revenue increased by 11.5% to N$90.9 billion and expenditure by 15.9% to N$101.4 billion in 2024/25. The budget deficit at 3.9% of GDP compared with 2.4% in 2023/24 suggests a moderate easing of fiscal policy. The widening deficit is primarily due to rapid growth in expenditure necessary to cover unforeseen and unavoidable costs, such as drought relief, social grants, and funding for the University of Namibia and the Namibia Students’ Financial Assistance Fund.  Despite significant tax refunds and relief measures, revenue for the 2024/25 period is also estimated to have increased at a double-digit pace, largely driven by strong SACU revenue, VAT receipts, and increased income tax collections from individuals. This can be linked to higher domestic demand due to enhanced economic activity and improved compliance with tax regulations. Looking ahead, the March 2025 Budget provided for a moderate further widening of the budget deficit to 4.6% of GDP in 2025/26. Total central government loan guarantees rose at the end of December compared to the corresponding period in 2023. The central government’s total loan guarantees rose to N$8.9 billion during the period under review. The Ministry of Finance announced that the rise was due to the disbursement of guaranteed domestic loans in the energy sector. Foreign loan guarantees declined by 1.9%, attributed to the repayments of some loans that were guaranteed by the government to public institutions in the transport and communication sectors.  As a percentage of GDP, total central government loan guarantees declined by 0.2 percentage points to 3.3% during the quarter ending December. Total loan guarantees remained well below the government’s set ceiling of 10% of GDP, which signifies a low contingency liability risk. The ministry said that even though revenue and spending both increased in 2024/25, the unchanged spending and lower income created a wider fiscal gap. It stressed the need to monitor SOE performance and revenue reliability closely.

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