Here’s to another 10 years: Nambia and De Beers sign Diamond sales agreement
The agreement will see the sorting, valui...
The Government of the Republic of Nambia has announced a new 10-year sales agreement with The De Beers Group.
The agreement will see the sorting, valuing and sales of Namdeb Holdings diamonds in the hands of The De Beers Group. Namdeb Holdings is a 50:50 joint venture between the Government and De Beers.
Established in 1994, Namdeb Holdings has contributed hugely to the Nambian economy and is the country’s biggest foreign exchange generator, contributing one in every five Nambian dollars of foreign earnings.
“This new agreement cements Nambia’s position as an important international diamond player and will provide further stimulus to advance our downstream industry,” said Obeth Kandjoze, Nambia’s Minister of Mines and Energy.
Philippe Mellier, CEO, De Beers Group, believes the new agreement – the longest ever between Nambia and De Beers – will play a key role in the future of Nabia’s national socio-economic development.
“Diamonds can have a powerful and transformative effect on a country’s prospects when effectively managed and I commend our partners in Government for their vision regarding the role of diamonds.” He said.
Read the May 2016 issue of Mining Global magazine
Gerald Group resolves iron ore dispute with Sierra Leone
Gerald Group, the US commodity trader, will pay Sierra Leone $20mn and cede a 10% stake in an iron ore project as part of the resolution to a nearly two-year dispute that led to the shutdown of production, the two sides revealed.
Gerald's wholly-owned subsidiary SL Mining filed for arbitration in August 2019 over a royalty payment dispute and suspended the Marampa mine the following month. Sierra Leone's government responded by cancelling its mining licence.
As part of the agreement signed on Friday, Sierra Leone will take a non-dilutable 10% stake in a new company that will replace SL Mining and resume operations at Marampa by June 1, Gerald said in a statement.
Gerald will make two $10mn payments this year and will have the immediate right to ship its current stockpile of about 707,000 tonnes of iron ore, it said.
Both sides will withdraw their legal claims before the International Chamber of Commerce (ICC) and International Centre for Settlement of Investment Disputes (ICSID), the statement added.
Gerald’s chairman and CEO Craig Dean commented: "I am delighted that we have been able to resolve our differences and have a fresh start and new beginning with the government of Sierra Leone."
Sierra Leone's Mines Minister Timothy Kabba told a news conference on Tuesday that the agreement was a milestone for the country.
"Whatever the pain we may have borne or dreaded throughout these two years ... this outcome justifies our action," he said.
Gerald estimates that Marampa holds about 1 billion tonnes of iron ore with a potential lifespan of 30 years.
Back in 2019, Dean spoke with Mining about the development of Marampa and commented: "SL Mining offers a substantial opportunity for Gerald Group as our Marampa mine in Sierra Leone is set to deliver six million tonnes of high-grade iron ore during its operational life. If you analyse the iron ore market it has transformed, even from a couple of years ago when prices were very low. Now prices have stabilised we’re in a favourable position with our first shipments leaving for China.
"Our goal is to make ‘Marampa Blue’ an internationally recognised premium grade iron ore brand. We intend to expand the delivery of high-grade 65% iron ore concentrate to markets in Europe and Africa.”