De Beers finds three new kimberlites in Angola, sees no increase in output this year

De Beers said exploration activities continued on the Lunda Northeast concession where three more pipes were discovered, bringing the total number of discoveries to 117 kimberlites.
It said in a statement that 22 of these had been prioritised for deposit-phase diamond grade testing to confirm their economic viability.
De Beers also noted that its exploration work at the Mulepe-1, also in Angola had progressed to the evaluation drilling phase.
The evaluation would be completed at the end of the first quarter of 2012, it said.
“Thereafter, if the De Beers Investment Committee approves the conceptual study, further drilling and engineering studies will be undertaken to deliver a feasibility study,” the group said.
It said that it had spent $43 million in 2011 compared to $47 million the previous year on exploration programmes focused on 11,347 square kilometres of ground holdings in Angola, Canada, India, Botswana and South Africa.
Meanwhile, De Beers said that in spite of uncertainty, and barring a global economic shock, it expected to see continued growth in global diamond jewellery sales, albeit at lower levels than the exceptional 2011 growth.
“This will be driven by the overall strength of the luxury goods market, improving sentiment in the US (the largest diamond jewellery market), continuing growth in China, and the positive impact of the 2011 polished price growth on retail jewellery prices,” it said.
On the production front, De Beers said it would continue to prioritise waste stripping and maintenance backlogs.
“We therefore do not expect a material increase in carat production in 2012,” it said. “This focus, which began in H2 and will continue during Q1 2012, will position De Beers to ramp-up profitable carat production as Sightholder demand dictates.”

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished