Windhoek — Namibian Diamond production doubled, while sales increased during the first six months of the year, just as economists are predicting a slightly bigger economic growth than earlier forecast.

Diamond carats recovered stood at 750 000 which is double the 385 000 carats recovered in the first six months of last year.

The Namibian diamond company, Namdeb, posted a strong performance for the first six months of the year, citing "improved demand".

Nevertheless, Namdeb cautions that while the performance is encouraging thanks to the increase in demand, the fragile global economy continues to pose a threat to the diamond industry.

Although important diamond markets of the United States, Japan and Europe show signs of recovery, there are concerns about the sustainability of recoveries in these economies given the combination of high unemployment rates, the fragile housing sector and a general economic slowdown over the past few months.

"We therefore look at the remainder of 2010 with measured optimism," says Inge Zaamwani-Kamwi, the managing director Namdeb.

Zaamwani-Kamwi says with most restocking activities now largely completed, further demand growth is dependent on increased consumer confidence, especially in emerging markets.

Diamond sales for the period went up to N$1,839 million from N$1,508 million the previous year.

Profit before tax is at N$719 million, up from the loss of N$685 million recorded in the first half of 2009, while profit after tax improved to N$259 million from a loss of N$396 million.

The improvement in profit after tax is due to increased revenue, along with the favourable reduction in cost of sales.

Namdeb says general performance improved significantly because of increased production, a favourable footprint and continuous business improvement.

"We now have a more enabling environment which is driving empowerment, accountability, production and profitability," says Namdeb.