Investment

De Beers secures $375 million financing deal to build a mining vessel

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Nedbank Namibia, RMB Namibia as well as Standard Bank, ABSA and Bank Windhoek agreed to provide 80 per cent of the funding for the ship, which will be the world’s largest of its type.

Monday 24, June 2019

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Botswana-based De Beers, a unit of Anglo-American, has secured a $375 million financing deal from five African commercial banks to build a new diamond mining vessel, aimed at boosting marine diamond recovery operations in Namibian coastal waters.

A syndicate of Namibia-based lenders will provide 80 per cent and Debmarine Namibia a 50-50 joint venture company between De Beers and the government of Namibia will provide the balance of $94 million.

In a statement, Debmarine said that the Alternative Mining Vessel 3 (AMV3) ship, will be the seventh in the Debmarine Namibia joint venture’s fleet, which mines high-quality diamonds from the ocean floor using hi-tech surveying equipment.

Otto Shikongo, the Chief Executive of Debmarine Namibia, said, “With this investment, we will be able to optimise new technology to find and recover diamonds more efficiently and meet growing consumer demand.”

The AMV3 has the capacity to add 500,000 carats of annual production from 2022 and is expected to contribute NAD 2 billion ($137.64 million) a year in taxes and royalties to the Namibian treasury in its first five years of production.

TAGS : Namibia, Botswana, De Beers, Anglo-American, Nedbank Namibia, RMB Namibia, Standard Bank, Bank Windhoek, ABSA, Debmarine Namibia, AMV3

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