De Beers and the government of Namibia have struck a deal that redefines the partnership agreement on diamond mining that has existed thus far and gives the government equal control of Namibia's marine diamond resources, the New Era news site reports.

Land-based diamond mining in Namibia is on the decline, with 30% more diamonds being recovered from the country's marine diamond deposits. According to experts in the mining industry, marine diamond mining will account for 50% of the nation's total diamond production.

De Beers' license to mine diamonds in Namibia is valid until 2020. But Namdeb – the joint venture between De Beers and the government – is seeking to extend mining activities until 2050. The company expects to invest over $750 million to expand current mining sites such as the Elizabeth Bay and Orange River mines and develop new ones.

At the end of April, Namdeb released its results for 2010, calling it an "extraordinary" year, which saw sales increase 12% to 1.522 million carats and production increase by 58%.

Namdeb Managing Director Inge Zaamwani-Kamwi told reporters in Windhoek that the company plans to produce approximately 1.5 million carats over the course of 2011.