Namibia mining sector faces contraction as diamond output falls

The Chamber of Mines of Namibia has warned that the nation's mining sector is projected to contract by 6.2% in 2026. This forecast is significantly steeper than the 2.2% contraction previously estimated by the Bank of Namibia. The downturn is primarily driven by a sharp decline in diamond production and rising fuel costs, which are squeezing profit margins and increasing financial pressure on operations.

De Beers production figures indicate that Namibia’s quarterly diamond production fell to 495,000 carats for the quarter ending September 30, down from 531,000 carats in the previous period. Year-to-date production for Namibia stands at 1.58 million carats, a 3% decrease compared to the same period in 2025. While Namdeb’s land-based operations saw a 16% year-on-year decline in the third quarter, Debmarine Namibia reported a 21% increase in quarterly output compared to the third quarter of 2025.

Despite the diamond slump, other minerals showed growth: uranium production rose 438% month-on-month following the resumption of full production at the Husab mine, while zinc and gold production increased by 27% and 4% respectively. Minerals remained a critical component of the economy, accounting for approximately 72% of Namibia’s domestic exports in August.