Almod Diamond faces 35 job cuts after NDTC action

Almod Diamonds will retrench 35 workers after losing access to local diamond supply, with general manager Marco Teixeira accusing authorities of ending the company’s contract prematurely and treating the firm “unfairly” despite nearly two decades of investment in Namibia.

The move follows Namibia Diamond Trading Company (NDTC) terminating the sightholder status of Duiker Investments One Hundred and Forty-Two Proprietary Limited, trading as Almod Diamonds Ltd, along with two other companies in 2024.

Eight months ago, then-Mines Minister Natangwe Ithete explained that the three firms lost their sightholder status for failing to meet NDTC’s minimum purchase requirements, which stipulate a US$15 million purchase value to maintain eligibility and status.

“We feel we were treated with disrespect. Our contract ended prematurely,” Teixeira said, adding that the decision has pushed the company into survival mode after nearly 20 years of promoting Namibia internationally.

The company, which has operated in Namibia for 19 years, now faces shrinking operations after being cut off from local diamond supply for more than a year.

“We are the only company that has lasted this long without a diamond allocation or a site. We’ve gone for a year and a half without supply,” Teixeira said.

As a result, Almod Diamonds has been forced to source rough stones from Botswana and other international markets, a move he describes as costly and unsustainable.

“It is not the same as buying locally in Namibia,” he stressed.

The immediate fallout is severe: 35 employees will lose their jobs, reducing the workforce to below 50.

“These are not just numbers. Most of our employees have been with us for 10 to 15 years. They are skilled professionals who will now be forced to start over. How will the industry absorb them? These are experienced people leaving stable, well-paying jobs. They will be taken advantage of,” he said.

Teixeira warned that the retrenchments risk creating a “skills vacuum” in an industry that has taken years to build local expertise.

“You are pushing out people who have become experts, in diamond evaluation, production and management, for a reset. That is dangerous.”

He also criticised a lack of engagement from authorities. “We were not invited by the government or the ministry to explain our position. It was a one-sided process,” he said.

“This is not how you treat good investors, people who respect the country and contribute to developing Namibians,"

Despite the setbacks, Almod Diamonds says it is not giving up. The retrenchments, Teixeira explained, are part of a strategy to cut costs and keep the business afloat.

Wilika Abisai, a stock clerk at the company, said the impact goes far beyond the workplace, striking directly at workers’ livelihoods and families.

“This is going to affect me a lot. I have medical aid, medical expenses, and a newborn on the way. Going through this is very sad. I also have children in school, in high school, and there are so many expenses that need to be paid. Right now, we are just sitting here feeling depressed and unsure of what to do,” she told NMH.

“We have tried. The company has really tried since last year, since December 2024, when we went on holiday. After that, in January, we received the news that the site-holder status had been taken away by the agency. We tried throughout the year. We wrote letters to the State House and eventually managed to secure a meeting. We were promised there would be a follow-up meeting involving both parties, our company and NDTC, but nothing materialised after that,"

Unit manager Helemia Eigab said staff understand the issue is political, but for them, it has direct consequences.

“And when you look at the numbers, 35 people, it is not just those 35 individuals. Behind each person, there are dependents relying on them. As a country, we already have a high unemployment rate. Where are these people going to go? We do not know. We are just going to add to the numbers. Especially in a specialised field like the diamond sector, and all diamond companies are struggling right now. The issue of lab-grown diamonds is already affecting us. It’s really tough,” he said.

Responding to questions about the retrenchments, Mines Minister Modestus Amutse said the matter requires careful review.

“Since this was a case resolved by the court, I would need to review it further to see whether other opportunities exist,” he said.

“The aim was to explore alternatives to rescue employment opportunities for those still at work, and to see whether there are possibilities to reinstate those who have already been laid off, according to the information provided. This requires engagement with the company involved, as well as an investigation into the circumstances that led to the court case,"

Amutse added that the process is ongoing. “We have started this process to see whether there are ways to mitigate what has already happened, not to override the court’s determination, but to explore possible alternatives to address the situation. We are actively working on it. We will inform the company of the outcome,”

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