Minister of Industries, Mines and Energy (MIME) Modestus Amutse said that the possible retrenchment of 35 local diamond polishers from the Almod Diamonds mining company stems from a court decision relating to issues of non-compliance by a state-owned company. 

He was responding to a question by the Landless People's Movement's (LPM) Eneas Emvula, who called for urgent government intervention to safeguard jobs in the country's diamond sector.

Almod Diamond's diamond quotas were terminated in December 2024.

Currently the company sources rough diamonds from two mines in Botswana, as the Namibia Diamond Trading Company has not been supplying them locally.

Thus, it has been operating without Namibian supply for rough diamonds for more than a year.

Due to a continued lack of local rough diamond supply, the company is retrenching 35 workers out of a workforce of close to 90 employees.

Eneas said the looming job losses at the company that has been operating for 19 years pose a threat to livelihoods and the broader economy. 

"These 38 Namibians are about to lose their jobs. And I would like to hear from the Honourable Minister what the intervention is, the remedial intervention that the Minister has taken to ensure that these jobs remain secured."

Responding, Minister Amutse said that because the matter had already been determined by a court of law, the ministry could not override the ruling.

The company, which follows a vertically integrated model that includes jewellery manufacturing, is reportedly preparing to retrench 35 skilled Namibians.

However, the minister said his office has initiated engagements to explore possible alternatives that could help mitigate the impact of the retrenchments.

He added that discussions are underway with the relevant state company to investigate the circumstances that led to the court case and to assess whether there are opportunities to rescue existing jobs or potentially reinstate those already laid off.

"We were to interact or to engage with the state company. And also to investigate further the matters relating to what caused that action to reach the court levels and to have a determination of the court. So we have it; we have since started that process to see how, if there are other opportunities to mitigate what has already happened," responded Amutse. 

He assured the House that further engagements are ongoing and that the company will be informed of the outcome once the process is concluded.