Bloomberg reported that Namibia has said it won’t reduce the tax rate of Namdeb Diamond Corp., which is 50-percent owned by Anglo American plc (LSE:AAL) and 50-percent owned by the Namibian government. The company had hoped the rate would be cut to 37.5 percent.
As quoted in the market news:
‘We can’t entertain an idea that diamonds should be taxed at the same rate as other mining companies,’ Namibia’s Finance Minister Saara Kuugongelwa-Amadhila said in a telephone interview today. ‘We made a conscious decision to set the tax rate at 55 percent because those diamonds are highly valuable and Namibians should share in the benefits.’
Namdeb, equally owned by Anglo American and the Namibian government, wants the tax rate reduced as it invests in technology to mine marine diamonds, Pauline Thomas, a spokeswoman for the company, said on Sept. 30.