Namibia: Diamond Mining Projected to Grow in 2022

Diamond mining is projected to grow strongly in 2022 and 2023 as Debmarine Namibia’s new mining vessel is expected to commence production during the second quarter of 2022. Debmarine Namibia’s N$7 billion diamond recovery vessel, the Additional Mining Vessel (AMV3), as it is technically known, will use sub-sea crawling extraction techniques to retrieve diamonds from the seabed off the coast of Namibia. The AMV3, which is now the largest diamond recovery vessel in the world, is the new flagship of the Debmarine Namibia fleet and is expected to operate for at least 30 years.

“The diamond mining sector is estimated to have grown by 2.3% in 2021 and is further projected to expand by 26.2% and 16.5% in 2022 and 2023, respectively,” stated Bank of Namibia in its February economic outlook.

The 2021 growth rate has been revised upwards from the 1.2% published in the December 2021 economic outlook update. According to the central bank, the adjustment was based on actual volumes produced, which turned out higher than earlier estimates.

From 2022 onwards, production from offshore mining is expected to increase substantially from the new mining vessel.

Also, uranium mining is projected to expand during the forecast period despite risks from low prices and water supply issues.

“The uranium mining sector is expected to grow by 3.9% and 6.6% in 2022 and 2023, respectively. The 3.9% growth projected for 2022 is moderation from 6% in 2021. The growth estimate for 2021 has been revised down from 7.4% projected during December 2021, based on actual volumes produced,” explained BoN.