De Beers has unveiled its new ‘origins’ strategy to enhance value across its business, from mining through to retail.
It said in a statement that the business will be streamlined and investments will be focused on high-return projects in core upstream assets, midstream technologies, natural diamond retail and synthetic diamond technology solutions.
“We are reinventing every part of De Beers to grow value. Through the delivery of our origins strategy, De Beers will be streamlined, focused, and a leader in diamond technology, provenance and luxury retail. We will recreate the magic of natural diamonds for modern consumers,” said company chief executive Al Cook.
“The outlook for natural diamonds is compelling. Global supply is declining with no new mines discovered in the past decade. Consumers in key regions are becoming more affluent and are increasingly differentiating between natural diamonds and lab-grown diamonds.”
He said every part of De Beers must add value in itself.
“But it is our integration from the upstream to the downstream, from the south of Africa to the north of Canada, across our portfolio of technologies, that makes De Beers unique. And it is through that integration that we will create value as brilliant as our diamonds,” said Cook.
De Beers said it is well on the way to delivering over $100 million in sustainable annual cost savings through a reorganisation and by focusing its capital spend.
The group has a highly competitive portfolio of mining assets that are among the best on the cost curve and have substantial production capability and reserves.
De Beers will focus its upstream investments on the major projects that will deliver the highest returns, including the ramp-up of Venetia Underground in South Africa and the progression of Jwaneng Underground in Botswana, with future optionality to deliver additional projects in Namibia and Canada should the industry dynamics warrant.
It said exploration expenditure will be refocused towards Angola, which represents the most prospective region in the world and where De Beers’ exploration activities are well underway in the northeast of the country.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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