The diamond deal that government pursued for the past three years is complete with “all partners satisfied.”

De Beers country representative Daniel Kali made the announcement on the diamond deal.

Government would for the first time start to receive a more direct and significant share of proceeds from diamonds mined off the coast of the country.

Namibia has always wanted 50 percent shareholding in De Beers Marine Namibia.

Government holds about 15 percent through the joint venture diamond company Namdeb.

De Beers Group ownership in marine diamond mining operations is in excess of 80 percent.

It is a second significant victory for Namibia following the successful arguments and setting up the beneficiation and value addition of Namibian diamonds inside the country.

Not only does the deal reform the entire partnership agreement on which government has worked with the De Beers Group, but it also give the state equal control of marine diamonds.

Effectively, the new agreement re-defines the country’s diamond industry since the formation of the joint venture between the state and De Beers group that formed the Namdeb entity in 1994.

Diamonds mined on land have declined significantly, with more carats being mined at sea.

In fact, last year’s production of diamonds mined at sea outstripped diamonds mined on land by nearly 30 percent.

Experts believe that soon, production of marine diamond would make up nearly 50 percent of the country’s total diamond mined annually.

The world economy recovery brought back the loyal buyers of diamonds in the three key markets of the United States, the Middle East and Japan, while the new wealthy class in China and India are also turned to diamonds to express their love.

Emerging markets present new business opportunities for the global diamond company, De Beers Group, and significant investments are being made to develop these markets.

In Namibia, the group is looking to expand diamond mining until 2050.

The current lifespan is until 2014, while the diamond mining licence goes until 2020.

Namdeb is looking at spending N$5 billion in the programme to extend diamond mining activities to the year 2050, with the money going into the re-investment of current mining operations, expansions and bringing onto stream new mining areas.

Among targeted mining area is the optimisation of the Elizabeth Bay mine, and extending the Orange River mine.

Yet at present, the long-term production plan remains just that, a long-term plan until the time that the mine management is able to put before shareholders the projected returns and associated risks.

The diamond sector has recovered from the global financial crisis of 2008, and Namdeb says the annual production target is back in excess of 1-million carats. “In the long term, the supply and demand dynamics of the diamond business remain attractive.

“Traditional consumer markets are recovering at the same time as demand growth in the emerging markets of China and India is expanding rapidly,” said Namdeb.

For the past financial year, diamond production went up to 1,472 million carats from the 929,000 carats produced in the previous year.

Diamond carats sold amounted to 1,522 million, to generate annual revenue of N$5 billion, which is 49 percent up from last year’s revenue.

Net profit for the year is N$419 million up from the N$414 million loss incurred in 2009 during the crisis.