Important Event: De Beers And Namibia Renew Their Contract For 20 Years

Before reading this news, we must first understand the cooperative relationship between De Beers and the Namibian government (as shown below).

The two parties established a joint holding company with a 50/50 equity ratio called Namdeb Holdings, which has two wholly-owned subsidiaries: Namdeb and Debmarine, which carry out land mining and ocean mining, respectively.In addition, the two sides also jointly established the NDTC (still a 50/50 equity ratio), the full name is "Namibia Diamond Trading Company" (Namibia Diamond Trading Company), whose function is to "coordinate and manage the local diamond market in Namibia."Therefore, the Namibian government and De Beers have a close and evenly distributed cooperative relationship, which is also the "Partnership" they have always emphasized.

On October 14, the De Beers official website announced that the Namdeb management team, through a series of positive contacts with the Namibian government, finally promoted a mutually beneficial new business plan, thereby extending the land mining time by 20 years. .The original cooperation between the two parties will end in 2022. One of the reasons is that Namibia has been sending diamonds to the world for a century, and the remaining diamond resources on the ground are now running low. Therefore, the company called Debmarine started the exploration of marine diamond resources in 2016.

Offshore mining is now the focus of De Beers' operations in Namibia. However, if Namdeb, which dominates land mining, is closed (by expiration of the contract), it may cause a large number of people to lose their jobs, and may even affect the livelihoods of tens of thousands of people (including children). The social unrest triggered by Namibia is severe. of. Therefore, this renewal is of great significance. It not only means that Namibia will continue to provide diamond resources to the international market in the next 20 years, but also continues the economic source of thousands of families.

In short, this is an important event, and it is good news for Namibia, De Beers, and the international diamond market, which is in short supply. The continued cooperation between the two parties means that the joint deep cultivation of giant companies and Namibia has not ended due to changes in the situation, but has moved towards a more secure and sustainable future.