By Wezi Tjaronda WINDHOEK The mining industry generated N$11.4 billion in 2006, establishing itself as the backbone of Namibia’s economy. The industry has seen tremendous growth after a decline especially in 2005, when it posted losses of N$400 million. Last year’s figures represent a growth of 52 percent of the N$7.5 billion generated in 2005, and profitability of the industry’s operations improved from a net loss of N$158 million in 2005 to a net profit of N$2.2 billion in 2006. Outgoing President of the Chamber of Mines, Mark Dawe, said in his review of the chamber’s activities of 2006 last week that the industry had once again established itself as the backbone of the country’s economy, surpassing all the other sources of Nambia’s revenue. The Bank of Namibia in its 2006 report said the performance of mining was robust in 2006 compared to the preceding year mainly due to the strong demand for diamonds in the world market. The report said the output of the diamond industry was estimated to have increased by 23.6 percent in 2006 compared to a decline of 4.1 percent in 2005. But looking ahead, the bank’s report notes that growth in value addition to the mining sector will reduce to 7.4 percent in 2007 because of an expected slowdown in diamond production. The year 2006 saw a significant contribution to the total mining revenue from non-diamond mining, which rose from 45.3 percent in 2005 to 51 percent in 2006. “The increased diversification of Namibia’s mining sector away from diamonds is a very healthy development for the future of our country,” said Dawe, adding that the decline is not due to a decline in diamond production but an increase in other metals and minerals during the period. Although diamond mining has always overshadowed the contribution of the non-diamond mining sector, 2006 was for the first time overtaken by the non-diamond mining industry in terms of its contribution to the value of minerals production. The total diamond production in 2006 declared to the Chamber of Mines amounted to 2.35 million carats with revenue of N$5.59 billion. Namdeb in 2006 reached two milestones, breaking the 1 million carat mark, the second time the company has broken the record, and the Government and DeBeers signing a sales agreement which will see the establishment of the Namibia Trading Company, which will handle all of Namdeb’s production. Debmarine produce 1.018 million carats, Samicor Diamond Mining Company 262 000 carats while Diamond Field produced 7 000 carats. The outgoing president said 2007 is expected to be another record year for Namdeb with demand continuing to increase despite the effects of negative publicity from the Hollywood film industry. Despite the bright prospects, stone size is expected to reduce, as diamonds are increasingly becoming difficult to recover. Namibia also mines zinc, uranium, gold, copper, lead, fluorspar and salt. Dawe said as part of the chamber of mines’ strategic planning process, the chamber concentrated on increased representation of the exploration members, with total exploration expenditure by the industry being N$310 million in 2006 alone. The members of the chamber in 2006 employed 8 706 people, including contractors with 7 125 being employed on a permanent basis.