De Beers profits decline

JOHANNESBURG – Mining giant De Beers reported a 33 per cent drop in half-year net profit on Friday, but said it expected higher rough diamond prices and strong consumer demand for the gems.

The company, which controls about 40 per cent of the world’s rough diamonds, said it earned US$350 million (N$2,45 billion) in the first half, down from US$520 million in the same period a year earlier. Sales for the six months fell to US$3,4 billion from US$3,66 billion in 2006.The company said this reflected a US$265 million (US$193 million) reduction in sales from its London-based diamond marketing business.De Beers markets roughly 45 per cent of the world’s diamonds by value.De Beers said it was upbeat about the future, anticipating further rises in rough diamond prices and continued consumer demand for the finished product.De Beers said new mine building programmes, more new sales and marketing operations in southern Africa and increased exploration in Angola and the Congo should boost sales in the longer term.Nampa-ReutersSales for the six months fell to US$3,4 billion from US$3,66 billion in 2006.The company said this reflected a US$265 million (US$193 million) reduction in sales from its London-based diamond marketing business.De Beers markets roughly 45 per cent of the world’s diamonds by value.De Beers said it was upbeat about the future, anticipating further rises in rough diamond prices and continued consumer demand for the finished product.De Beers said new mine building programmes, more new sales and marketing operations in southern Africa and increased exploration in Angola and the Congo should boost sales in the longer term.Nampa-Reuters