Diamond miner De Beers is making major investments in its business operations as diamond demand is expected to outstrip growth in diamond carat production in the next 10 years given the lack of new discoveries in the last decade.
Industry analyst Goldman Sachs indicates that diamond demand is expected to expand at a compound annual growth rate of 11% in nominal value between 2013 and 2017, Mining weekly reports. Consequently, Goldman Sachs also expects global supply of natural diamonds to increase at an average rate of 5.2% between 2013 and 2017.
De Beers Group strategy and new business executive director Bruce Cleaver says that several billion dollars has been committed to three major projects in particular.
“We are investing around $2 billion in Venetia, our largest mine in South Africa, which will move the operation from open pit to underground, and extend the life-of-mine beyond 2040.”
Cleaver indicates that in Botswana the group has another multibillion-dollar mine expansion project for Cut 8 at Jwaneng. Further, the group also hopes to bring on stream a new mine, Gahcho Kué, in Canada’s Northwest Territories, which will further develop its portfolio in the country.
In addition, the firm continues to invest around $50 million each year in exploration in some of the world’s most prospective areas, such as Southern Africa, Canada and India.
“Our marketing strategy is focused on driving demand through our proprietary channel, Forevermark. “We spend over $100 million a year on our marketing activities and we undertake campaigns through various channels – including TV, online and print – and in various markets,” he explained.
At the end of this year, the group would be launching a major campaign, called Promise, in the US – the world’s largest diamond jewelry market.
The campaign is the group’s latest in a long line of major marketing campaigns ahead of the Christmas sales season.
