Namibia's diamond production has doubled in the first eight months of 2010, reaching 1.1 million carats of rough diamonds compared to the 552,000 carats produced in the corresponding period of 2009, news outlets report.

In value, Namibia produced nearly N$3 billion - US$438 million – between January and August 2010, a 26% increase.

In terms of month-to-month gains, August 2010 saw a rise in diamond production of 29.3% from July 2010, and a 59.5% increase over the corresponding month last year.

John Steytler, an economist with Windhoek Bank, noted that the country's increased diamond output was the result of higher demand for diamonds, not new diamond resources.



In August, Namdeb – a diamond company in which the Namibian government owns 50% and De Beers the other 50% - announced that over the next decade it would invest US$1 billion in its diamond mining projects on Namibia's coast.

Namdeb, a 50-50 joint venture between De Beers and the Namibian government, said in August it would invest $1 billion in the next 10 years to extend the life of its diamond mining operations near the coastal town of Oranjemund. Last week, De Beers South Africa Chief Executive Barend Petersen told Reuters that De Beers had abandoned marine diamond mining operations in South Africa and would concentrate its marine operations in Namibian waters.

"It's clearly more advantageous for us to mine the sea waters of Namibia that the South African sea waters," Reuters quoted Petersen saying.