Distinguished Members of the Diplomatic Corps

Distinguished Members of the working group

Distinguished Representatives of the Media

Distinguished Guests

Namibia is one of world's 2 largest producers of alluvial diamonds.

The quality of our diamonds is no longer a secret in diamond industry circles. Diamonds are a strategic resource to our country's economy.

They contribute for up to 50% of all our export earnings.

Offshore diamond mining has pushed Namibia into the enviable position as the global leader in cutting-edge marine mining technology. We are also boldly diversifying into downstream, value-adding activities that offer new opportunities for potential new investors and for our citizens.

The new Diamond Act (Act 13 of 1999) is an embodiment of the changing dynamics and challenges facing the Namibian diamond industry today. The new legislation strikes a vital balance between the need to unleash the Iatent potential that lays dormant in Namibian's diamond industry and the controls necessary for an industry susceptible to criminal incursion.

Namibia has been producing diamonds for over one hundred years but a quantum leap In marine technology has enabled us to explore and exploit new frontiers.

For the first time, Namibian diamonds are being cut in Namibia by Namibians at our new diamond cutting and polishing factory, Namgem in Okahandja, just 70 KM north of Windhoek.

However, despite more than a century of diamond mining in

Namibia too many of our citizens have been for too long denied their fair share of benefits from, and control over, the country diamond wealth. Moreover, our diamonds have done more to create move jobs and more wealth in other countries. To a large extend, our new diamond Act is also an embodiment of our burning desire to redress some of these deficiencies.

Against that backdrop, the Ministry of Mines and Energy embarked upon process to draft Namibia's new diamond legislation.

After three years of hard work and extensive consultations with all relevant Stakeholders Parliament enacted our new Act a year ago, which was promulgated on the first of April this year. The new Act replaces the archaic Diamond industry Protection Proclamation of 1939.

The landscape of the Namibian diamond industry has undergone a significant evolution, if not revolution. Today, mining activities are progressively shifting to offshore. More than 40% of all our diamonds now come from the ocean floor. The new marine mining environment presents challenges of regulation and monitoring. Also, we no longer have only one player on the scene. Other companies, such as Namco and Diamond Fields are flexing their muscle. More players call for more regulation and control.

Expansion into downstream activities and the provision in the new Act for Licenses to deal in diamonds and tool making and research calls for stricter monitoring and controls as these activities present opportunities for all forms of illicit activities.

The new Diamond Act therefore takes into account all these dynamics that are a result of industry restructuring

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The Act seeks to protect our industry against illicit activities and smuggling to a greater extends than the old proclamation of 1939 which basically provided for industry self-regulation. All imports of rough diamonds to Namibia will be subject to strict requirements of prior Government scrutiny and approval. It also institutes comprehensive monitoring over the handling and transportation of diamonds from the point of origin until the export of rough and polished. There are strict controls and monitoring over the activities of dealers and cutters. Systems of registers ensure that there is proper reconciliation wherever rough diamonds are entering or leaving. Authorized buyers can only by from authorized sellers and vice versa.

Penalties for dealing in illicit diamonds are so stiff that even women's groups complain that in Namibia, a diamond is more protected that woman and children are protected from abuse. There are maximum penalties of up to 20 years in prison and or fines of up to one million rands. The message is very clear; Namibia shall not be a haven for illegal diamond business. We are aware that criminal elements would strive to stay one step ahead of us and that they would strive to stay one step ahead of us and that they would continue to devise more creative methods to smuggle diamonds out of our mines and out of our country. Nevertheless, we shall continue to be vigilant and we shall intensify our efforts to keep smuggled diamonds from Namibia.

We recognize the fact that Namibia is not an Island in and on itself.

There we encourage cooperation with our neighbors who also happen to be significant stakeholders in this industry. Cooperation with the industry is also very critical in our efforts to stem the trade in illicit and conflict diamonds. However, it is imperative that African producer nations are recognized as significant players in the industry. Any initiatives that are geared towards halting the trade in conflict diamonds that exclude Southern African procedure nations are bound to fail. I also wish to convey a very strong message from the Namibian delegation that we shall not accept dictates from overseas and from any group or organization that we are not party.

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In conclusion, I would summarize that Namibia has a very comprehensive, if not sufficient legal framework in places that is a model for others to emulate. We are aware that we cannot be complacent and that much work remains to be done in terms of capacity to implement.

We are ready to share our knowledge and experience and as well as to learn from others.