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Namibia expects uranium and diamond boom after a bleak 2020

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(Kitco News) - Local media sources reported today that Namibia expects strong rebound in the domestic diamond and uranium production after a slump in 2020 caused by the COVID-19 pandemic.

According to the Bank of Namibia (BoN), diamond output was down 14.7 percent in real terms in 2020, and growth is projected at 2.8 percent in 2021 and 16.9 percent next year.

The BoN said that local uranium mining sector was also down and contracted by 5.2 percent in 2020 but expected to expand by 8.5 percent and 5.7 percent in the following two years. The sector is grappling with existing factors that include an insufficient supply of water required for operations and low uranium prices.

According to the World Nuclear Association, Namibia produced 5,476 tonnes of uranium in 2019 and was fourth largest uranium mining country worldwide.

Namibia is also one of the top producers of gem diamonds globally.

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