De Beers Pours N$754 mn into Namibian Projects

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 In 2024, De Beers raised its capital expenditure in Namibia to N$754 million (USD 41 million), up from N$643 million (USD 35 million) the previous year, despite a decline in diamond production and financial results. Namibia’s total diamond production fell by 4% to 2.23 million carats in 2024, down from 2.33 million carats in 2023. The average price per carat dropped to USD 426 from USD 515, while unit costs rose from USD 246 to USD 295.

The country’s underlying EBITDA decreased to USD 121 million, down from USD 159 million in 2023, and EBIT fell to USD 82 million from USD 123 million. The overall output decline was largely due to a 13% reduction in Debmarine Namibia’s production, which decreased to 1.625 million carats. Conversely, Namdeb’s land-based operations saw a 30% increase in production, reaching 609,000 carats, contributing to a 3% rise in Namibia’s fourth-quarter output.

The rise in capital expenditure reflects De Beers’ broader strategy of cost optimisation. Globally, the company reduced its total capital expenditure by 14% to USD 536 million, making spending adjustments such as rephasing the Venetia underground expansion and rationalising other projects.

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Amid challenging trading conditions, De Beers experienced a 23% decline in overall revenue to USD 3.3 billion, with rough diamond sales volumes dropping 28% to 17.9 million carats. Despite these difficulties, the company continued investing in projects aimed at extending the life of its operations, with increased land-based production from Namdeb helping to mitigate some losses from offshore output.