Kandjoze dismisses reports against Namdia

18 Nov 2016 12:50pm
WINDHOEK, 18 NOV (NAMPA) – Mines and Energy Minister Obeth Kandjoze has reaffirmed Namibia’s position to maximise revenue and benefits from its natural resources while maintaining its attractive and investor friendly environment.
Kandjoze was reacting to recent reports that the newly established government company, Namib Desert Diamond (Namdia) had sold diamonds to unnamed companies in Dubai – known for accepting undervalued diamonds - since its establishment in April this year.
He reiterated that Namibia’s objective remains that of price discovery whilst earning government valuable revenue through taxes and dividends.
“The decision taken by government is to assert its sovereign rights over its mineral resources in this manner as opposed to nationalising mines and resources,” he said.
Kandjoze explained that Namdia’s mandate remains to sell diamonds on the international market with the objective of getting maximum shareholder value, subject to thorough due diligence.
It distributes up to 15 per cent of Namdeb Holdings’ total diamond production.
Without divulging more, the minister said the company had managed to complete its first three sales during the period of September and November 2016 and met its sales target as set out in the company business plan.
He explained that since the company is engaged in the gathering of pricing and market related information that is commercially and competitively proprietary, the final sales margins could not be disclosed to the public as this would pose a commercial risk to competitors.
The minister, however gave his assurance that the company will disclose all relevant information and its financial statement at the end of its financial year in March.
“Please permit me to debunk all those myths and to inform you that Namdia is a sovereign strategic vehicle that will be used to sell and market a strategic resource for the country. Namdia is not a vehicle for self-enrichment for middle men or existing buyers of our diamonds through the De Beers sightholders system,” he said.
Namdia was established in line with the signing of a marketing and sales agreement by the Government and the De Beers Group, concluding negotiations which dated back to 2014.