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Namibia and the Diamond Industry |
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Namibia is a vast territory that sprawls over the southwestern regions of the southern African subcontinent. The country is bordered to the west by a 1,500-kilometer Atlantic coastline, to the north by the Republics of Zambia and Angola, to the east by Botswana and to the south by the Republic of South Africa.
The Namibian territory covers 824,269 square kilometers. It is a big country, even by African standards, about four times the size of the United Kingdom and 27 times the size of Belgium. It is also a sparsely populated country. The total of its culturally diverse peoples stand at just 1.8 million, some 160,000 of whom live in and around Windhoek, the capital of Namibia. |
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The Economy: |
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Namibia's economy relies heavily on international trade with imports and exports each totaling more than half of GDP in value. Major exports include beef, meat products, diamonds, uranium, a wide variety of fish products, and beer. The country also has a significant tourism industry based on its magnificent wildlife and landscapes Namibia is the world's fifth largest diamond producer by value with an average per carat value of US$276. Namibia's marine diamond production has now surpassed traditional land based production. In 2001, over 60% of Namibia's 1.6 million plus carats per year diamond production came from the sea with 95% of the diamonds being of gem quality. |
  Mining accounts for approximately one third of GDP and for some 80% of the export sale value. The industry is based on diamonds - mined along the southwestern coastline, inshore and offshore, mainly by Namdeb (joint venture between the Namibian Government and De Beers Centenary A.G.).
The diamond mining industry plays a vital role for the country, as it contributes US$400 million per year to the economy. Annual production of gem quality diamonds averages 1.6 million carats. The diamonds recovered from both onshore and offshore operations are of the world's highest quality. Their average price on the market is US$276 per carat.
From relative obscurity five years ago, Namibian marine diamond production has now surpassed Namibia's traditional land based diamond production. In 2001, over 60% of Namibia's 1.6 million plus carats per year diamond production came from the sea with 95% of the diamonds being of gem quality. Furthermore, the potential of the marine diamond industry has barely begun to be exploited since experts first estimated the overall inventory of Namibian marine diamonds at over 2 billion carats. However, the area of diamond deposition off the Namibian coast is finite and therefore of considerable strategic importance to industry participants wishing to secure long-term positions in this largest known accumulation of top quality gemstones. |
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