De Beers Diamond Sales Rise; Mining Will Resume in Botswana

De Beers, the world’s largest diamond producer, said sales are climbing this year and mines in Botswana probably will resume production next week. “Sales have been steadily increasing since the end of last year,” spokeswoman Lynette Gould said in an e-mailed statement dated yesterday. Cash flow was positive in March, and the Johannesburg-based company is “optimistic” […]

De Beers, the world’s largest diamond producer, said sales are climbing this year and mines in Botswana probably will resume production next week.

“Sales have been steadily increasing since the end of last year,” spokeswoman Lynette Gould said in an e-mailed statement dated yesterday. Cash flow was positive in March, and the Johannesburg-based company is “optimistic” about meeting annual goals, she said.

De Beers suspended mining in February at a joint venture in Botswana that produces a fifth of global diamond supply and said it would borrow $500 million from shareholders. The worst recession since World War II has sapped demand for jewelry, spurring Rio Tinto Group and other mining companies to reduce production and payrolls.

The Debswana venture, which is 50 percent controlled by Botswana’s government, expects to resume production at its Jwaneng, Orapa and Letlhakane mines on April 15, Gould said. The venture produced 32.3 million carats in 2008.

Diamond prices fell 7 percent in the first quarter after slumping 9.2 percent in 2008, according to a PolishedPrices.com index. Tiffany & Co., the world’s second-largest luxury-jewelry retailer, reported a 76 percent plunge in fourth-quarter profit last month after holiday sales shrank in the U.S. recession.

Source: www.bloomberg.com