De Beers Remains Upbeat

  • As strong demand for rough diamonds persists
  • Says demand for diamond jewellery in the key consumer markets of the US and China continues to be positive

GAZETTE REPORTER

Leading diamond mining company De Beers remains encouraged by the condition of the rough diamond market as they move to the second half of 2021, this publication has learned.

Just like any other business out there, De Beers endured a tough 2020 as their rough diamond sales and production were affected by the COVID-19 pandemic. But now as 2021 progresses, De Beers is hopeful of a better performance in terms of rough diamond sales.

“With demand for diamond jewellery in the key consumer markets of the US and China continuing to be positive, and midstream capacity in India returning, we have seen strong demand for rough diamonds during the fifth sales cycle,” said De Beers Chief Executive Officer (CEO) Bruce Cleaver in the company’s rough diamond sales for Cycle 5, 2021 statement released recently. “Overall we are increasingly optimistic as we move towards the second half of the year and, while risks as a result of the global pandemic persist, we have been encouraged by the condition of the market.”

This is the company whose value of rough diamond sales (Global Sight-holder Sales and Auctions) fifth sales cycle of 2021, amounted to $470 million. The De Beers Cycle 5 2021 provisional sales value represents sales as at 22 June 2021. Sales values are quoted on a consolidated accounting basis. Auction sales included in a given cycle are the sum of all sales between the end of the preceding cycle and the end of the noted cycle.

Meanwhile, Cleaver noted that owing to the restrictions on the movement of people and products in various jurisdictions around the globe, De Beers Group has continued to implement a more flexible approach to rough diamond sales during the fifth sales cycle of 2021, with the Sight event extended beyond its normal week-long duration. “As a result, the provisional rough diamond sales figure quoted for Cycle 5 represents the expected sales value for the period 7 June to 22 June and remains subject to adjustment based on final completed sales,” Cleaver said.

De Beers Group is a multinational company that specializes in diamond exploration, diamond mining, diamond retail, diamond trading and industrial manufacturing. The company is active in open-pit and large scale alluvial, coastal and deep mining. It operates in 35 countries, including Botswana from where it generates approximately 75 percent of its earnings.

De Beers’ major shareholder is Anglo American, which owns 85 percent of the company. The remaining 15 percent is owned by the Government of Botswana. De Beers Group and its partners produce around one third of the world’s rough diamonds by value. De Beers sells rough diamonds to global diamantaires through its diamond trading and auction businesses. It sells polished diamonds and diamond jewellery via its Forevermark and De Beers Jewellers businesses.