Namibia possesses rich marine diamond reserves estimated at 75 million carats, accounting for 80% of the partnership’s total production. Production decreased by 4% in 2024, attributed to strategic reductions at Debmarine Namibia. De Beers, through its partnership with the Namibian government, is exploring strategic separation to maximize values amid evolving market dynamics favoring natural diamonds over lab-grown counterparts.
Namibia holds the most significant marine diamond reserves globally, estimated at approximately 75 million carats across around 1 million square kilometers of seabed. Marine diamond deposits account for approximately 80% of the partnership’s total diamond output and 94% of its resources, as documented in the Anglo American 2024 Integrated Report. De Beers, owned by Anglo American, practices joint operations with the Namibian government to recover both land and offshore diamonds through Namdeb and Debmarine Namibia.
In 2024, diamond production in Namibia decreased by 4%, yielding 2.2 million carats compared to 2.3 million carats in 2023. This decline was a result of deliberate measures taken to reduce production at Debmarine Namibia, which saw a year-on-year decrease of 13%. However, increased mining of higher-grade resources and improved recovery efforts at Namdeb partly offset this decrease. De Beers is responsible for producing approximately a third of the world’s rough diamonds by value from countries including Botswana, Canada, Namibia, and South Africa.
Within its operations, De Beers partners with the Government of Botswana, managing Debswana as a 50:50 joint venture, which oversees the highly valued Jwaneng diamond mine and the large Orapa resource. Anglo American has announced a dual-track strategy for the separation of De Beers from the group, exploring divestment or demerger options. This shift aims to increase strategic flexibility for both entities, maximizing their value for stakeholders.
The firm is set on implementing its origins strategy focusing on four crucial pillars, with an objective to streamline operations and sustainably reduce overheads by US$100 million. Market demand from the United States, India, and other nations is anticipated to decrease midstream inventories. Additionally, a rebound in retailer restocking is expected, bolstered by new marketing initiatives for natural diamonds, encouraging macroeconomic improvements in China and enhanced consumer confidence in key markets.
Conversely, the wholesale prices for lab-grown diamonds are experiencing a decline, attributed to excess inventories in regions such as India and China. As a result, retail prices for lab-grown diamonds have also decreased. This trend is expected to clarify the significant differences between lab-grown and natural diamond jewelry, leading U.S. retailers to refocus on promoting natural diamonds as commercial incentives increasingly favor their sale over lab-grown alternatives.
In conclusion, Namibia’s remarkable marine diamond reserves underscore its significance in the global diamond industry. Despite a recent decrease in production, strategic measures undertaken by De Beers and its partners aim to enhance the operational efficiency and market value of both natural and lab-grown diamonds. The outlook for natural diamonds appears favorable, with anticipated demand and enhanced marketing driving consumer interest away from lab-grown alternatives.
Original Source: www.observer24.com.na
