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Press Release: Addressing the second day of the World Federation of Diamond Bourses (WFDB) and International Diamond Manufacturers Association (IDMA) presidents meeting in Tel Aviv, Philippe Mellier, the CEO of De Beers Group, said that sustainable returns across the diamond pipeline are the key to investment to underpin further growth. “Diamantaires need to make sustainable returns so they can invest in things such as new technology, marketing activities and business efficiency. Meanwhile, at De Beers we need to make sustainable returns so we can invest in things such as production capacity, with our current projects requiring expenditure of more than $3 billion,” he said. Turning to the midstream, Mellier said that while there “is no ‘silver bullet’ that will provide sustainable returns for all” there are “activities and investments that can enhance midstream prospects.” “First, there is a need to generate consumer demand growth downstream – this supports the value of diamantaires’ polished diamond sales. Second, there is a need to facilitate efficiency and maintain third party confidence in the midstream – this will reduce diamantaires’ operating costs. And third, there is a need to maintain availability upstream – this will limit the escalation in diamantaires’ input costs.” Mellier highlighted De Beers multi-billion dollars of investment in three of the world’s most important diamond projects, saying that “this type of investment is not undertaken lightly as we know that it will be many years before we stand to make a single dollar of return on the billions we commit.” “But our optimism in the industry’s long-term future is shared almost universally by industry analysts and commentators, as hundreds of millions of new consumers around the globe are set to purchase diamonds in the coming years. “With all this in mind, we are undertaking one of the most comprehensive programs of investment to support long-term industry profitability, ever set in motion in the diamond sector,” he said. “Because if we keep pace with this rapidly changing world then, despite our bright history, our greatest successes will lie ahead of us.” About The De Beers Group of Companies De Beers is a member of the Anglo American group. Established in 1888, De Beers is the world’s leading diamond company with unrivaled expertise in the exploration, mining and marketing of diamonds. Together with its joint venture partners, De Beers employs more than 20,000 people (directly and as contractors) across the diamond pipeline and is the world’s largest diamond producer by value, with mining operations in Botswana, Canada, Namibia and South Africa. As part of the company’s operating philosophy, the people of De Beers are committed to "Living up to Diamonds" by making a lasting contribution to the communities in which they live and work and transforming natural resources into shared national wealth. For further information about De Beers, visit www.debeersgroup.com.
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