Namibia is planning to change the way it hands out diamond licences because people are using them as a way to "get rich quick".

The Namibian newspaper reported that the government would stop giving the licences to formerly disadvantaged people after it was found that many were selling their concessions to rich investors.

The minister of mines and energy Dr Nickey Iyambo said: "I'm not entirely happy with the way the previously disadvantaged are going about with EPLs [exclusive prospecting licences]. "

He said that because many previously disadvantaged Namibians did not have money they were selling their licences to rich people who would offer them "one million dollars or half a million".

Making a killing

Dr Iyambo told the newspaper that there would be a moratorium on the licences to allow his ministry to introduce a system that would ensure the licence agreements were properly controlled.

But the minister would not name anyone who had been involved in selling a licence.

And he would not say how many Namibians had made a killing out of doing a deal with rich investors.

Dr Iyambo was speaking after announcing Namibia's role in the Kimberly Process - an international agreement designed to stop diamonds being used to fund civil wars.