De Beers repositions mines for future sales growth

Production and Markets

Publishing Date: 10 Feb 2012 12:56pm GMT
Author: Mining Journal

Diamond producer De Beers has announced its final production figures and operational review for 2011, saying that the company expected global jewellery sales growth to continue next year whilst it maintained production levels.

De Beers reported EBIDTA of US$1.7 billion for the year, a 21% increase on its 2010 earnings. Annual production was 31.3 Mct, a 5% decline on the previous year, with the reduction attributed to environmental and labour factors.

During the second half of 2011 De Beers said that it had embarked on a refocus at its operations which was due to continue in 2012. In response to slowing consumer demand in late 2011, the group elected to prioritise the removal of waste and operational maintenance, with a view to increasing rates of production and profitability in due course.

In his statement to shareholders, De Beers’ chief xecutive Philippe Mellier said the change of focus “will position De Beers to ramp-up profitable carat production as Sightholder demand dictates”. He argued that demand would continue to grow over the year, “outpacing what will likely be level carat production”.