Namdeb, the mining joint venture between the Namibian government and De Beers, may be planning to shut some of its mines that have been extended beyond their original planned life of mine, even as the Company is drawing up a strong five year plan, which includes increasing production significantly in 2018, according to local media reports.

The reports are said to be based on a statement from company's acting CEO, Markus Lubbe, who has been quoted as saying, “To be the pride of Namibia's mining to 2050 and beyond remains our credo at Namdeb.”

According to the media, the two mines that may face closure are the Elizabeth Bay mine and the Daberas mine. As per the reports, the Company is reported to have said that while it is investigating new mining opportunities, it is equally important that it plans responsibly for the possible closure of operations which reach the end of their economic lifespans.

The Company is said to have stated, “The closure of any operation is always a last resort, and we are doing everything to operate economically, which includes seeking alternative ways of creating value.”

Besides the mine lifespan, the decision may also be prompted by the challenging situation that the industry continues to face mainly due to subdued world economic growth, which negatively impacts on forecast exchange rates and other indices.

Namdeb has also been quoted as saying that the southern coastal mines are its core mining assets. Here the Company is drawing up a five year plan, which includes increasing production significantly in 2018.

The CEO is reported to have concluded, “In the current challenging environment, I am confident that with continued support from our employees, shareholders and Namibia at large, Namdeb will continue to be a significant contributor to Namibia's economy well into the future.”