De Beers CEO sees stable natural diamond supply

Adding that the industry should see decent medium- to long-term growth.
Image: Bloomberg

Natural diamond supply has peaked and will remain stable for the next few decades, the CEO of mining giant De Beers told Reuters on Monday, adding that the industry should see decent medium- to long-term growth.

De Beers Group, Anglo American’s diamond business, is one of the world’s leading diamond miners alongside Russia’s Alrosa.

“I don’t see a reason to think there will not be decent growth medium- to long-term in the diamond industry … I feel more positive about the future than I have done for a long time,” Bruce Cleaver said on the sidelines of a diamond industry conference in Duabi.

“Supply will remain stable. It won’t fall off a cliff. We see 20, 30, 40 years of stable supply. That’s why I feel quite positive,” he said, adding that supply probably peaked in 2018-19.

The Covid-19 pandemic disrupted the global diamond supply chain, with some mines shuttered, rough diamond trade plummeting and polishers in India leaving their jobs.

In the second quarter of 2020, De Beers sold around 3% of the rough diamonds they would normally, Cleaver told the conference, partly because concerns about miners working closely together limited production and partly because buyers anticipated lower consumer demand as economies slowed.

When demand rallied from the end of 2020, increased polished prices led to increased rough prices, Cleaver told Reuters.

De Beers sales were $4.82 billion in 2021, up from $2.79 billion in 2020, company data shows.

In December, De Beers said it had applied to conduct exploration activities in north-eastern Angola, following reforms of the country’s diamond industry.

“We remain extremely focused on exploration,” Cleaver said, adding the company is exploring in Botswana, Canada and South Africa.

Last year, it also commissioned a survey of the ocean floor off Greenland’s coast in a first step to determine whether it could hold deposits of highly-prized marine diamonds. De Beers already produces diamonds from Namibia’s sea bed.

“It is far too early to tell whether that is or isn’t going to work,” Cleaver said of the Greenland research.

De Beers’ future will also see investment in Environmental, Social and Governance (ESG) practices, Cleaver said, without giving figures. This includes diamond traceability using blockchain technology, working towards a goal of being carbon neutral by 2030, and better mining practices.

COMMENTS   0

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

SEARCH COMPANIES
Enter company name or share code:

ECONOMIC DATA  

  CPIThe Consumer Price Index (CPI) measures monthly changes in prices for a range of consumer products Apr 2022 5.90%
  CPI ex OERThe Consumer Price Index excluding Owners’ Equivalent Rent (CPI ex OER) measures monthly changes in prices for a range of consumer products excluding Owners’ equivalent rent that measures changes in the cost of owner-occupied housing Apr 2022 6.40%
  RepoThe rate at which the Reserve Bank lends money to the country’s commercial banks and set by the Reserve Bank’s Monetary Policy Committee. May 2022 4.25%
  Prime lendingThe Prime Lending Rate is the rate of interest that commercial banks will charge their clients when issuing a loan (home loan or vehicle finance) May 2022 7.75%

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: