• 10 hours Are Bitcoin’s Environmental Risks Overblown?
  • 17 hours Why The Gold Rush Ran Out Of Steam
  • 3 days Coinbase IPO Explodes, But Fails To Keep Its Momentum
  • 4 days China Slaps Alibaba With Record $2.75B Antitrust Fine
  • 5 days The Pandemic Has Culled The Middle Class
  • 6 days Legacy Automakers See Massive Spike In Sales
  • 7 days Tesla's Biggest Competitor Is Going Cobalt-Free
  • 8 days Stocks That Could Benefit From Biden’s $2.5 Trillion Infrastructure Plan
  • 10 days The Mafia Has Expanded Its Influencer Under COVID-19
  • 11 days How Fintech Will Get Skeptics Into Crypto
  • 12 days Monday Markets Rise On Stellar Jobs Report
  • 15 days Not Even Bribery Allegations Can Crush Cannabis Boom
  • 19 days Canada May Become Leader In Booming Battery Market
  • 20 days Nearly 42% Of All Amazon Reviews Are Fake
  • 21 days Kidnapping Is Big Business In Nigeria
  • 22 days COVID Fraud Amounts To Nearly $570M
  • 24 days Art Is Now An Algorithm
  • 26 days TikTok Threatens America, Tesla Threatens China
  • 26 days Small-Cap Energy Sectors With Big Upside
  • 29 days Coinbase Valued At $68 Billion Ahead Of IPO
Major Diamond Mine Slashes Production

Major Diamond Mine Slashes Production

Angola’s Sociedade Mineira de Catoca, which…

Lunar Mining May Commence As Early As 2025

Lunar Mining May Commence As Early As 2025

Plans to start mining the Moon as…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Commodities
  3. Other

De Beers To Build $468 Million Diamond Recovery Ship

Diamond

Debmarine, a 50/50 joint venture between world’s No. 1 diamond producer by value De Beers and the government of Namibia, will build a $468 million-diamond recovery ship, the world’s first custom-made vessel of such kind and the seventh in the company’s fleet.

The watercraft, slated to start operations in 2022, would add about 500,000 carats a year of production capacity to Debmarine Namibia’s output. This, Anglo American’s diamond unit De Beers said, represents an increase of about 35 percent on current output levels.

Vessel, slated to start operations in 2022, would add about 500,000 carats a year of production capacity to Debmarine Namibia’s output.

Anglo’s chief executive, Mark Cutifani, noted that the addition of the first-of-its-kind vessel would bring numerous benefits in terms of De Beers’ production profile by value and volume, as well as the technologies that can be deployed from the outset for greater efficiency and productivity.

The executive added the investment offered a three-year payback, a more than 25 percent internal rate of return and an earnings before interest, taxes, depreciation and amortization margin of more than 60 percent.

Debmarine Namibia last ordered a new vessel in late 2017. At the time it was projected to cost $142 million and was expected to start operations in 2021.

The company operates five diamond mining vessels and one exploration and sampling one, the mv SS Nujoma. They comb the ocean floor using advanced drill technology, supported with tracking, positioning and surveying equipment.

Dredged gravel is sifted at treatment plants onboard the ships. The leftover material is returned to the ocean and recovered diamonds are securely sealed in containers, loaded into steel briefcases, and flown by helicopter to shore.

No human hands touch the diamonds during the entire production process at sea.

Worth the investment

Namibia has over 3,700 square miles of marine diamond concessions along its south-west coast, which is expected to support the industry for the next 50 years. Related: Welcome To The World’s Biggest Free Trade Area

Debmarine has a license to operate off the coast of the African country until 2035 within a 2,316 square mile area — just under half the size of Jamaica.

De Beers, Namibia to spend $468m in world’s first custom-built diamond searching ship

(Click to enlarge)

The company began marine mining operations in 2002, with a haul of approximately 500,000 carats. At the time, sister company Namdeb's land operations were producing around a million carats.

But over the years the tables have turned and marine operations now account for about to 75 percent of total diamond production in the country, according to Namibia's Chamber of Mines.

While marine diamonds may be challenging to find, they're certainly worth the effort. According to Debmarine’s own estimates, 95 percent of the precious rocks recovered from the sea are of "gem quality," compared to just 40-60 percent of those mined inland.

By Mining.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment