De Beers Looking to Boost Production in 2015

Mining Weekly reported that De Beers CEO Philippe Mellier said at an event on Tuesday that the company is planning to improve its production capacity in 2015. Its efforts will include expansion at existing projects as well as the development of new deposits.

As quoted in the market news:

Citing results from the De Beers’ Diamond Insight Report 2014, Mellier said that it ‘showed us that the opportunity for diamonds is perhaps stronger than ever before’ – adding that growth in demand for diamonds was set to outstrip growth in supply.

The report also highlighted that even in the most pessimistic scenario, the company could expect real positive demand growth for diamonds in the years ahead, ‘thanks to the traditional engine of US demand [which was expected to deliver a 7% growth rate in overall market value], coupled with growing demand from the East as more Indian and Chinese middle-class consumers choose to buy diamonds.

‘It also showed that diamond supply is forecast to plateau and then decline after 2020. In short, it revealed an industry in which all parts of the supply chain can capture opportunity if they respond effectively now,’ he pointed out.

Click here to read the full Mining Weekly report.