How to Get a Diamond Licence, Right and Permit in Namibia
Overview
This article is an initiative of the Ministry of Mines and Energy aimed at explaining the types of licenses and permits administered and issued by the Ministry and the application and evaluation processes followed by the Ministry in granting licenses.
The expected outcome of this document is to give possible investors, project proponent and interested parties a quick overview and understanding of how licensing of mining and energy permit activities are undertaken by the Ministry in the context of the relevant legislative framework.
DIAMOND LICENCES AND PERMITS IN NAMIBIA
Diamond licences and permits are issued under the Diamond Act, 1999 and Diamond Regulations 2000 and administered by the Diamond Commissioner who is appointed under the Diamond Act, 1999.
1 Types of Licences
1.1. Dealer’s Licence
This licence entitles the holder to carry on business as a buyer, seller and exporter of rough diamonds.
1.2. Cutter’s Licence
This licence entitles the holder to polish diamonds for purposes of business or trade.
1.3. Tool making Licence
This licence entitles the holder to set unpolished diamonds in tools, implements or to alter or crush those diamonds for the purpose of trade; and
1.4. Research Licence
This licence entitles the holder to conduct research and test in connection with diamonds but not to polish diamonds for purposes of business or trade.
2. Types of Permits
Permits cater for non-recurring circumstances and may be easily withdrawn in contrast to licences
(a) Section 27 (a- j) of the Diamond Act, 1999 provides
(b) for different types of Diamond permits entitling holders to:
possess, sell, purchase, import, export, possess any diamondiferous concentrate outside a restricted area, export diamondiferous concentrate, remove and export any sand, soil, clay, gravel, stone, rock or mineral that may contain diamonds.
(c) The most common permit is the Restricted Area Permit under Section 27 (k) of the Diamond Act, 1999. This permit entitles any person to enter, work, visit or reside in Restricted Areas (Please refer to Section 52 (2) of the Diamond Act, 1999).
(d) Any person applying for a Restricted Area Permit is required to have a “clean Police clearance” which can be obtained from the Namibian Police. ( Please see Section 52 (2) on a “ Restricted Area”)
(e) The procedure for application and issuance of permits is outlined under Sections 28 and 29 of the Diamond Act, 1999 and Regulations 5, and 6 of the Regulations.
(f) Applications for permits under section 27 (a – j) shall expect feedback within 5 working days; whereas
(g) Applicants for Section 27 (k) permits shall expect feedback within 30 days as per Section 29 of the Diamond Act.
(h) Applications for Restricted Area permits shall be lodged directly at the Ministry’s Regional Offices at Oranjemund, Lüderitz and Swakopmund.
Table 1: Table showing the types of licences, period of validity and applicable fees
| LICENCE TYPE | PERIOD OF VALIDITY (YRS.) | APPLICATION FEE (N$) Nonrefundable | ANNUAL FEE (N$) |
| Cutter’s Licence | 10 | 500 | 1,500 |
| Dealer’s Licence | 5 | 500 | 10,000 |
| Tool-making licence | 5 | 500 | 1,500 |
| Research Licence | Minister to determine. | 500 | 1,500 |
| Permits | Minister to determine | 250 | N/A |
2. How to apply for Diamond licences and permits in Namibia
Applications for any diamond licence shall be made in terms of provisions outlined under Sections 5, 16 and Regulation 2 of the Diamond Act, 1999 and Diamond Regulations of 2000, in a prescribed form (Form 1) and shall be submitted to the Office of the Minister.
3. What happens to the application once it is lodged?
Once an application is lodged, the Department of Diamond Affairs to determine whether all documents required are attached.
The following documents are required when submitting any application:
(a) Certified copies of Identification or Passport;
(b) Proof of payment of a non-refundable application;
(c) Certified copy of Company registration (CC1), Certificate of Incorporation, Memorandum and Articles of Association;
(d) Tax Certificate Issued by the Ministry of Finance;
(e) Original Police Clearance Certificate; and
(f) A Business Plan
Once an application is complete, it is forwarded to an evaluation committee for evaluation. However, if it is incomplete, a written request is made to the applicant to furnish outstanding documents.
4. Namibia Diamond Licence and Permit Evaluation Criteria
The evaluation committee evaluates the applications and makes recommendations to the Minister through the Diamond Commissioner. When evaluating an application the following criteria are taken into consideration:
(a) Whether the applicant is a Namibian or permanent resident
(b) Compliance with statutory requirements (Company Act and State Finance Act)
(c) A clean Police Clearance Certificate with no criminal offences as stipulated under Section 48 of the Diamond Act and Regulation 13) of the Diamond Regulation.
(d) Financial viability (financial support, working capital and insurance
arrangements)
(e) Technical viability (experience and expertise of key personnel)
(f) Technological viability
(g) Source(s) of rough diamonds
(h) Proof of market and distribution channels (for cutter’s, dealers, Tool making licences)
(i) Proof of purposes of research and tests to be conducted (for a research
licence)
Where an application is granted, the Minister determines reasonable conditions in respect of the licence which shall are endorsed by both parties. The Diamond Commissioner then issues a licence to the prospective licencee in the prescribed form (form 2) where the following conditions are met:
(a) The Business Premises has been approved and a prospective licencee has been issued with a Business Premises Certificate (Sections 18, 39 and Regulation 8 of the Diamond Act, 1999 and Regulations respectively; and
(b) The Minister, in terms of provisions under Section 50 and Regulation 16 of the Diamond Act, 1999 and Regulations has approved the Security Plan.
Where an application is refused, the Diamond Commissioner notifies the applicant in writing of the Minister’s decision and outlines reasons why the application was refused.
5. When should an applicant expect feedback on their applications?
An applicant should expect feedback on their application for licences within six (6) months as per (Section 16 (4) (c) Diamond Act, 1999).
6. Application for Renewal of Diamond Licences in Namibia
Section 20 and Regulation 4 (3) of the Diamond Act, 1999 and Regulations respectively make provision for the renewal of Diamond licences. An application for renewal of a diamond licence shall be made in the prescribed form (Form 1) and submitted to the Office of the Minister. An application for renewal must be made 3 months (90 days) before the date on which the licence will expire.
Please note: Provisions for applying, evaluating, investigation, granting or not granting and issuing a “new” licence apply!
GENERAL PROVISIONS
When applying for a Licence, please take the following pointers into consideration:
a. Incomplete applications will not be considered
b. Late submissions will be handled in accordance with the provisions of the respective legislations
c. The relevant application fee must be paid and a copy of the receipt submitted with the application.
d. The cashier at the Ministry operates within the hours of 9am-12pm.
CONCLUSION
The Ministry of Mines and Energy is committed to serving the public in a free, fair and transparent manner. In case of any queries, please contact the Ministry at the following
CONTACT US
Contact the Ministry of Mines and Energy for additional support on acquiring Mining Permits and License in Namibia
The Ministry of Mines and Energy
6 Aviation Road
Private Bag 13296
Windhoek
Email: info@mme.gov.na
Tel: +264-61-284 8111
Fax: +264-61-2848176