Key points
- The $25-million (U.S.) loan is repayable over six years at a fixed interest rate of 6.75 per cent per year.
- Nam II, a 160-tonne marine mining system with a 100-tonne-per-hour processing plant, is scheduled to begin commissioning in the third quarter of 2000.
- The company chartered an 8,000-ton former British Royal Navy vessel, being converted in Gdansk, Poland, and renamed MV Ya Toivo.
- Namibian Minerals raised its 2000 production target to a minimum of 400,000 carats, up from 260,000 carats in 1999.
Namibian Minerals has finalized a $25-million (U.S.) project loan facility from
HSBC Equator Bank plc and Nedbank Africa, a division of Nedcor Bank Ltd.
for the company’s second marine diamond mining system for operation
off the coast of Namibia. The Nedcor portion of the project loan is
underwritten by Credit Guarantee Insurance Corporation of Africa Ltd.,
in co-operation with the South African government.
The $25 (U.S.) project loan is expected to cover the entire cost of
construction of the marine diamond mining system Nam II, a 100-tonne-per-hour
processing plant, additional vessel equipment including Nam II’s launch and
recovery system and software control system, commissioning costs and financing
fees. The project loan is repayable over six years and has a fixed interest
rate of 6.75 per cent per year.
Namco is the project manager for the design, construction and
commissioning of the project, which is scheduled to start commissioning in the
third quarter of 2000. Construction of the Nam II mining system is well
advanced in Cape Town, South Africa. Nam II, weighing 160 tonnes, is based on
the same design principles as the present NamSSol, which has been operating
off the Namibian coast since April, 1998. Nam II’s enhancements include a
1.8-megawatt dredge pump, two rotating cutters and water jets to access
diamond bearing material in varying geological terrain. Nam II is designed to
operate in water depths of up to 200 metres and penetrate eight metres of
sediments including clay and sandstone layers. The ability to recover over
1,000 tonnes per hour is a further technological innovation, allowing
profitable mining even in lower grade areas.
The company has concluded a charter agreement over an 8,000-ton former
British Royal Navy vessel, which is currently being converted at the owners’
cost in Gdansk, Poland. The vessel will be renamed MV Ya Toivo, in honour of
Namibia’s first minister of mines and energy, Andimba Toivo ya Toivo,
member of parliament, who is presently the minister of labour.
Construction of Nam II is scheduled for completion in February, 2000.
Vessel modifications will continue throughout the first quarter of next year
and the vessel is expected to sail to Cape Town in the second quarter.
Commissioning is targeted to commence third quarter.
The company is increasing its 1999 production target of 260,000 carats to
a minimum of 400,000 carats in 2000. By the end of 2000 the company expects to
achieve a production rate in excess of 500,000 carats on an annualized basis,
reflecting rising production from Nam II and the consolidation of Ocean
Diamond Mining. Further production increases are planned from the
introduction of additional mining systems into ODM’s mining licences.
“Our NamSSol technology has revolutionized the marine diamond industry.
Nam II builds on this success boosting capability and improving mining
economics. It will be the world’s largest and most effective subsea diamond
mining system,” said Alastair Holberton, chairman and chief executive officer of Namco.
