De Beers is examining their approach to their smaller mining projects as they consider future strategies for mines where there have been no major diamond discoveries in the past 30 years. Despite the intensive exploration efforts by De Beers and other diamond companies, it is expected that no big diamonds will be found within the next decade. The exploration for diamonds is underway; the country that looks the most promising is Angola. Angola is highly prospective and under-explored. However, due to security concerns, De Beers no longer operates in Angola.
Over the past 15 years a large amount of small diamond mines have been started up. The most successful of them has been a deposit that was formerly called AK6 kimberlite pipe in north-eastern Botswana. Today the mine is known as Karowe. Large, highly valuable diamonds have been found in the mines of Karowe, but it is owned and operated by Lucara Diamond Corporation.
De Beers CEO, Bruce Cleaver, is bringing in these new strategies. A lawyer by profession he joined De Beers in 2005 and rose rapidly through the ranks eventually taking over for Philippe Mellier last July. Cleaver has said that he is keen to “tackle a smaller mining operation.”
It remains to be seen if De Beers can compete and develop a small profitable mine. Over the past decade De Beers has sold all of its small and medium-sized operations except one – the Voerspoed mine. De Beers has mainly concentrated its production on huge operations around the world.
The venture to Canada has gotten mixed results with production boosted this year from the new mine.
Author: Canadian Jeweller Magazine Staff
Canadian Jeweller Magazine Staff is the shared byline for reporting filed by the magazine's editorial desk. Founded in 1879, Canadian Jeweller is the longest running jewellery business publication in Canada, covering market reporting, retail strategy, watches, diamonds, coloured gemstones and the commerce of the Canadian jewellery trade. Work published under this byline is edited and verified by the Canadian Jeweller editorial team in Toronto.
