Biggest Diamond Mining Companies of the World. De Beers

Diamond Mining Divisions of De Beers
De Beers Consolidated Mines (DBCM)

This oldest enterprise of the De Beers Group is mining diamonds in South Africa. De Beers’ interest in DBCM amounts to 74%. The remaining 24% belong to Ponahalo, a South African company, in compliance with the Black Economic Empowerment (BEE) program. Currently, diamonds are mined in four old mine camps - Cullinan, Finsh, Kimberly, and Namaqualand – and in three new areas - Oaks, Venetia and the coastal area of South Africa. In 2006, ore mining was shut in the Koffiefontein Mine, where the first diamonds were extracted as far back as 1870.
Diamond mining pattern of De Beers Consolidated Mines

 

Performance of De Beers Consolidated Mines diamond mine camps in 2006-2007
 

	Cullinan	Finsh	Kimberly and contract ors	Koffie- fontein	Namaqua land and contract ors	The Oaks	Venetia	South African Sea Areas	Total
Diamond output, thousand carats	1 150 964	2 275 2 334	1 945 1 638	- -	978 767	103 94	8 117 9 081	- 121	14 569 14 998
Processed ore, thousand tons	2 942 2 277	5 786 6 018	11 123 10 070	34 -	6 412 4 701	262 253	6 050 6 267	1 461 2 804	32 610 29 586

 
Note: 2006 is in the numerator; 2007 is in the denominator.

Namdeb
Namdeb, the joint venture of De Beers (50%) and the Namibian Government (50%), is mining diamonds from oceanic underwater and land-surface alluvial deposits of the country.

Diamond mining pattern of Namdeb

 
Performance of Namdeb diamond mine camps in 2006-2007
 

	Land	Sea	Total
Diamond output, thousand carats	1 035 999	1 050 1 177	2 085 2 176
Processed ore, thousand tons	25 356 23 669	- 555	25 356 24224

Note: 2006 is in the numerator; 2007 is in the denominator.

Debswana
Debswana (50% – Botswana Government, 50% – De Beers) is the leading division of the Group mining diamonds in four mine camps. If now its share in the Group’s diamond output amounts to two thirds, by 2009 the greater part of diamond mining is expected to be concentrated in Botswana. Botswana holds the first place in the world in terms of value of its diamond output and is second to Russia in terms of its volume. The diamond turnover income is 33% of the country’s GDP, which is mainly provided by Debswana’s business.

This company is more than others similar to ALROSA by its production volume, structure and financial results. This is why ALROSA’s managers and the managers of the diamond industry in Russia should pay more attention to the operational experience of Debswana, as well as to that of the De Beers Group and Anglo American Holding with a view of formulating an efficient strategy of development for ALROSA and the rough and polished diamond complex as a whole.

Diamond mining pattern of Debswana
 

Performance of Debswana diamond mine camps in 2006-2007
  

	Jwaneng Mine	Orapa Mine	Letlhakane Mine	Damtshaa Mine	Total
Diamond output, thousand carats	15 638 13 476	17 338 18 708	1 089 1 113	228 341	34 293 33 638
Processed ore, thousand tons	10 108 10 300	18 443 18 755	3 723 3 753	1 461 2 804	33 735 35 612

Note: 2006 is in the numerator; 2007 is in the denominator.

Other divisions of De Beers
The De Beers Group’s enterprises are engaged in diamond mining in Tanzania (Williamson Diamonds) and Canada (De Beers Canada). In the future, diamond mining in Canada is expected to a certain extent to compensate for decreased diamond output in old diamond fields, which are gradually depleting.

Performance of other De Beers divisions in 2006-2007
 

	Williamson Diamonds	De Beers Canada
Diamond output, thousand carats	189 220	- 81
Processed ore, thousand tons	2 963 3 205	1 461 2 804

Note: 2006 is in the numerator; 2007 is in the denominator.

Yuri Danilov, Senior Research Fellow, Department of Rough and Polished Diamonds Complex Economy, Institute for Regional Economics of the North (Federal State Scientific Entity)