De Beers posts 55 pc jump in H1 earnings

MUMBAI: One of the leading global diamond producers De Beers' on Tuesday reported 55 per cent jump in this year's first six months' earnings at almost USD 1.2 billion over the same period last year, buoyed by price rise and strong retail demand from India and China.

In 2010, De Beers' earnings stood at USD 762 million, the company said in a statement here.

The sales of rough diamonds by the Diamond Trading Company in first half this year were USD 3.5 billion (including those through joint ventures), which is a 33 per cent increase compared with 2010, it said.

The growth is mainly driven by growth in price, which went up by approximately 35 per cent.

Sales during the period have been exceptional, driven mainly by continued growth in the Middle East, Indian and Asian retail markets and their impact on rough price growth.

The company's production remained similar to the first half of 2010 due to maintenance and asset management difficulties and excessive rainfall in South Africa, it said.

In the first six months of 2011, De Beers' production totalled 15,53 million carats compared to 15,43 million in the corresponding period in 2010.

Despite the ongoing turmoil with the global economy, De Beers' remained optimistic and said that the exceptional growth in retail markets in India and Asia will continue to drive demand for diamonds.