De Beers Confident For Next 2 Years

Published on 14/04/09

Diamond miner De Beers says it remains optimistic for the firm in the recession, despite predictions that production will halve.

The group, which is the world's largest and mines more than 40 per cent of the global supply of diamonds, says while trading conditions are "tough" it can survive another two years of recession.

Stuart Brown, De Beer's finance director, says: "Because we saw it early and took very dramatic steps around the business, we are in a position to weather trade in 2009 and 2010 without any recourse to shareholder funds."

The company revealed it plans for a 50 per cent drop in turnover this year, as the market for diamonds and diamond jewellery reduces in the tough economic times.

Predictions for the years ahead follow a 40 per cent cut to production from De Beers and a 30 per cent drop in the price of diamonds.

Carlee Kelly, a manager of a US-based retailer Diamonds Chicago, recently told Medill Reports that increasingly people are looking at the grade of the gemstone to get more for their money in the recession.