afrol News, 22 October - The Canadian company Diamond Fields International has announced an enhanced engagement in its Namibian marine diamond concession following a US$ 6.2 million financing. The expected "cash flow" from Namibia is to be used to finance mining operations worldwide.

Diamond Fields (DFI) yesterday announced it had negotiated "non-brokered private placements totalling Cdn$ 8,100,000." The mining giant therefore had achieved a healthier financial platform for its worldwide operations.

- Proceeds from these private placements will be used to fund continued development of DFI's Namibian marine diamond concession, as well as exploration activities in Greenland, Sierra Leone, and Madagascar, and for repayment of debt and general working capital purposes, according to a statement from the company.

The company's statement also reveals that its operations in Namibia - the world's fifth largest producer of diamonds - are the backbone of its global operations. Thanks to the stable incomes from Namibia, Diamond Fields may continue "pursuing diamond and nickel opportunities worldwide."

- The Company's corporate strategy is to maximize cash flow from its Namibian marine diamond concessions and systematically explore and develop its international diamond and nickel projects, the statement reads. "In addition, the Company continues to explore opportunities to acquire new economic mineral projects worldwide."

Although foreign companies - mostly South Africa's De Beers, Diamond Fields and Russian producers - produce great revenues from Namibian diamonds, the industry greatly contributes to the national economy. Diamonds contribute to around 40 percent of Namibia's total export earnings and about 15 percent to GDP.

After 80 years of exploitation, Namibian diamonds however are getting harder and harder to find. Inland deposits actually "could be depleted" within the next 10 to 15 years, according to the Bank of Namibia.

However, the industry during the latest decade has been stretching its operations offshore. Today, Namibia is the only country that mines diamonds from the seabed, and Diamond Fields is one of the main offshore diamond miners. The offshore diamond production is still growing in quantity.

By staff writer

© afrol News

Related pages and feature

Current afrol News Top Stories