De Beers CEO Tells Sightholders that ‘Investment Will Be Key to Capturing Long-Term Success’

De Beers CEO Philippe Mellier

(IDEX Online News) – Maintaining success in the diamond industry is dependent upon investment to sustain supply, finance and demand, said De Beers Group Chief Executive Philippe Mellier in his address at a Sightholder reception this week in Gaborone during the first De Beers Sight of 2015.

Mellier pointed to De Beers’ investment in mining projects in Botswana, South Africa, Canada and Namibia to deliver sustainability of supply. Specifically, he mentioned the progress at the Cut-8 project at the Jwaneng mine in Botswana, which is estimated to deliver more than 100 million extra carats; the Venetia Underground project in South Africa, which will extend the life of that mine to 2044; progress at the Gahcho Kué in Canada, and the recent opening of the Sendelingsdrif mine in Namibia.

Further downstream, Mellier also discussed De Beers’ investment in its distribution strategy to ensure the most efficient ways of bringing the product to market, and in the sustainability of demand through Forevermark.

Highlighting the role of Sightholders investing for growth, he said: “Whether your focus is on economies of scale, improved use of technology or more efficient distribution, sustainably capturing value in the midstream requires ongoing investment so that your own customers’ demand remains strong and reflective of the true value of your product and service proposition.’’

Marking the first anniversary of Global Sightholder Sales’ move from London to Gaborone, Mellier praised “the seamless transition [that] is testament to all the hard work put in by government, the Sightholders, the local community, and the men and women at the De Beers Group of Companies.”

The De Beers CEO also highlighted that last year signified the 20^th anniversary of Namdeb, De Beers’ joint venture with the government of Namibia, and the 45^th anniversary of Debswana, the company’s joint venture with the government of Botswana. “We have been able to celebrate these impressive anniversaries thanks to our investment in long-term success and to the effective sharing of responsibility between De Beers and the governments with which we work,” he said.

Mellier concluded by saying: “We believe that the industry is approaching one of the greatest periods of opportunity in living memory, and we are committing to major investments across the pipeline so that we can unlock the full value presented by the industry’s outstanding fundamentals.”