De Beers Chairman Cynthia Carroll says focus should be on beneficiation

De Beers Chairman Cynthia Carroll, who will step down in two months, said that the company should stay focused on the beneficiation process in Africa as the Diamond Trading Company prepares to complete the transfer of sorting and sales operations to Botswana.

The operation will be one of the largest transfers of value and expertise from Europe to Africa, she told sightholders at the annual chairman's cocktail party in London. 

"This is one of the biggest undertakings in the history of De Beers. We have asked a number of our colleagues to relocate to Gaborone with their families. Some have already moved, and more will join them later this year.

"I would like to pay tribute to you for the way you have risen to the challenges presented by the relocation. Beneficiation is core to De Beers’ business model, and I would like to thank you for your commitment as we move into a new era at the end of this year."

The outgoing chairman also spoke about Anglo American's ongoing commitment to the diamond industry. "Anglo American invested in De Beers because we firmly believe in the long-term growth potential of diamonds," she said.

"The more that our executive team learn about this business, the more excited we are about our investment and the long-term potential – the De Beers leadership team is truly outstanding."

Personnel from De Beers and Anglo American have been working together for some time at the mining level to ensure the firm optimizes its resources and delivers large-scale projects.

"My time spent in the De Beers universe has reinforced my love and respect for diamonds, and while I will not be with you for the journey ahead, Anglo American will remain steadfast in its belief in diamonds and unshakable in its support of De Beers. At Anglo American, we seek to be the Partner of Choice – as we have learned more about the diamond business, we have seen how critical the partnerships we have with our sightholders are. I can assure you that it will be in that spirit of partnership that we go forward."

"De Beers is 125 years old this year, and is still the world’s leading diamond company. This is testament not only to the vision and expertise of its people, but also to you, the world’s leading diamantaires. You have worked in partnership with De Beers, and have secured – in the minds of people all over the world – diamonds as the ultimate luxury, reflecting the very highest human values of love and commitment. Over the last 12 months, I have had the pleasure to meet with a number of you and witness first-hand the dynamism that drives this industry."

Carroll recounted how, over the past severa; decades, De Beers and its sightholders have developed new markets, from the United States to Japan and, in more recent times, markets in China and India have grown robustly.

"And together, you have demonstrated that diamonds can benefit millions of people involved in bringing the diamond dream to market; from the mines in southern Africa to the jewellery stores of Fifth Avenue, via the polishing factories of Surat [in India].

"Although the current global economic climate presents us all with considerable challenges, the diamond industry has continued to innovate and build demand. There are as many opportunities as there are challenges. With the U.S. economy now showing a steady recovery, and diamond consumption in China, India and the Gulf likely to grow strongly in the long-term, we think there is great potential. For example, between 2010 and 2015, the Chinese middle class is expected to add 150 million people to its ranks."

Carroll has served as Chief Executive of Anglo American plc since 2007, but is leaving the post and will be replaced by Mark Cutifani in April. She also serves as chairman of Anglo American Platinum and of De Beers and will leave those positions too well when she steps down from heading Anglo American.