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De Beers' First Half Diamond Sales Increase By 8 Percent

Posted on: Friday, 30 September 2005, 06:01 CDT

By Anonymous

DIAMONDS

De Beers reported that it sold more than $3.2 billion worth of diamonds during the first half of 2005. That was an 8-percent increase from the same period last year.

The South African-based company is the world's largest producer of rough diamonds. It accounts for about 60 percent of the world market.

Diamond Trading Co. (DTC), De Beers' marketing company, said demand for rough diamonds was strong from cutting centers during the first of the year. However, DTC said the company has also seen a shift in seasonal buying to the second half of the year.

Sales of diamond jewelry in the United States was up 6 percent during the first half of 2005, DTC said. And the price of polished diamonds has shown a small increase. Diamond markets outside of the United States were mixed, the company said. They are forecast to grow by 6 percent for all of 2005.

De Beers said its diamond production during the first six months was 23.7 million carats. That was up 23 percent from the same period last year when production was running behind by about 15 percent. The major production contributors were Debswana, with 15.3 million carats, and the company's South African mines, with 7.4 million carats.

During the first half of 2005, De Beers announced that it would put its Kimberley underground mine under notice of closure. And once it gets environmental approval, the company will begin developing its Victor Mine in Ontario. This $791-million project would be De Beers' second Canadian diamond mine.

Copyright Society for Mining, Metallurgy, and Exploration, Inc. Sep 2005

Source: Mining Engineering

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