Debmarine CEO Willy Mertens said the company is investing N$1.1 billion in a next-generation crawler to replace production lost after the early retirement of two older vessels, Grand Banks and Coral Sea.
Speaking at the recently concluded Mining Expo in Windhoek, Mertens said the massive 370-tonne machine, built for the Benguela Gem vessel, will operate 20% faster than existing models and is expected to recover approximately 80 000 high-value carats annually.
While this will not match the 200 000 carats lost with the retired vessels, Mertens said the efficiency and quality of the new crawler would help close the gap.
“It will not replace all of the lost carats, but the higher value of the diamonds recovered and the speed at which the crawler operates will make a significant difference,” he said.
Powered by 3.4 megawatts of electricity — enough to supply around 230 homes — the crawler will be joystick-controlled from the vessel’s bridge.
It is scheduled for deployment toward the end of this year once the Benguela Gem returns from maintenance in Cape Town.
The decision to retire the Grand Banks and Coral Sea earlier than planned was driven by cost considerations. Both vessels were due for major three-year maintenance in 2025, costing around N$500 million each, but with only three years of service life remaining before scrapping in 2028 or 2029, the company determined the expense could not be recovered.
The retirement forms part of Debmarine’s broader cost optimisation strategy, which aims to maintain production at around 1.5 million carats this year while responding to weaker market conditions.
Mertens said the company had to align supply with demand to avoid oversupplying a subdued market.
In 2023, Debmarine reached a production peak of 1.8 million carats following the addition of the Benguela Gem to its fleet in 2022.
However, the downturn in global diamond demand, coupled with price declines, prompted the company to scale back output.
The 2025 target of 1.5 million carats will still account for about 75% of Namibia’s total diamond production.
Mertens noted that rough diamond prices are now about 45% lower than in 2015, with EBITDA falling from nearly N$7 billion in 2022 to under N$1 billion in 2024.
He said the company expects to achieve N$1.5 billion in 2025, with most of the improvement coming from cost savings rather than higher sales volumes.
Debmarine’s operations take place off Namibia’s southern coast at depths of 90 to 140 metres, with mining focused on the first half-metre to metre of seabed sediment.
The company operates seven mining vessels — five drill vessels and two crawler vessels — supported by helicopters, launch boats, and desalination plants on board to produce fresh water from seawater.
Environmental stewardship remains a key part of the company’s strategy.
Sediment collected during mining is returned to the ocean floor within minutes, and independent studies by a Marine Scientific Advisory Committee have shown that mined areas typically recover within three to ten years. Each year, Debmarine halts production for 20 days to conduct benthic sampling, comparing the conditions of mined and unmined seabeds.
The company also invests approximately N$130 million annually in training and development, with 92% of its workforce being Namibian, many of whom are trained internally.
It continues to support social programmes in health, sport, and food security, including rice and poultry projects with the University of Namibia.
Mertens said that while market conditions are challenging, the fundamentals for natural diamonds remain intact.
He expressed confidence that the new crawler investment, combined with technological innovation and disciplined cost management, will position Debmarine to weather the downturn and be well-prepared for recovery when demand strengthens.
