Diamonds are no longer forever, says De Beers

Posted By: Staff
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London, Apr 26 (ANI): The diamond supply in the world is coming to an end, according to De Beers, the world's biggest miner of the gem.e Beers has said that it will reduce its production to extend the life of its mines.

Des Kilalea, a diamond analyst at RBC Capital Markets, has said that owing to the moderated output, diamond prices could rise by at least 5 per cent a year for the next five years.

In 2008 De Beers produced 48m carats and the company will cut production to 40m in 2011.

In the last two decades the industry has found no new diamond deposit to match the two biggest mines in Africa, owned by De Beers, or the best Russian mines of Alrosa, the other big diamond producer.

"Do we want to ramp production back up to 48m carats, given the lack of availability in the future?" the Telegraph quoted Gareth Penny, managing director of De Beers, as telling the Financial Times.

De Beers accounts for 40 per cent of global rough diamond sales. (ANI)

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