De Beers CEO Predicts Steady Supply Of Natural Diamonds And Moderate Industry Growth

The global supply of natural diamonds has reached its highest point and it is likely to stay constant over the next several decades, according to the CEO of mining behemoth De Beers. 

The executive of the global diamond seller also predicted that the industry will expand moderately in the medium to long term.

Along with Russia’s Alrosa, the Anglo-American diamond firm De Beers Group is also among the biggest miners of diamond in the world. 

“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 impacted the worldwide supply chain of diamonds, resulting in the closure of several mines, a drop in raw diamond trading, and the layoff of diamond polishers in India.

De Beers sold roughly 3 per cent of the raw diamonds it would typically sell in the second quarter of 2020, according to Cleaver, partially because of concerns about miners cooperating closely and partly due to purchasers anticipating decreased consumer demand as economies slowed.

When demand picked up in the second half of 2020, Cleaver told Reuters that higher polished prices led to higher raw pricing.

According to business data, De Beers’ revenues in 2021 were $4.82 billion, up from $2.79 billion in 2020.

Following the country’s diamond sector reforms, De Beers said in December that it has applied to begin exploratory activities in north-eastern Angola.

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

It also carried out a survey of the ocean floor off the coast of Greenland last year as a preliminary step in determining if it may contain quantities of very valuable marine diamonds. De Beers already mines diamonds from the seabed of Namibia.

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

De Beers would invest in environmental, social, and governance (ESG) initiatives in the future, according to Cleaver, who did not provide statistics. This includes employing blockchain technology to track diamonds, striving toward a carbon-neutral target by 2030, and improving mining standards.

(Adapted from Reuters.com)



Categories: Economy & Finance, Entrepreneurship, Regulations & Legal, Strategy, Sustainability

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: