Venetia
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Major investments continue to be undertaken by diamond mining and manufacturing company De Beers Group, as demand is expected to almost outstrip growth in terms of diamond carat production in the next ten years, given the lack of new mining discoveries in the last decade, the group said on Wednesday.
De Beers Group strategy and new business executive director Bruce Cleaver mentioned in a media conference call, following the release of the group’s Diamond Insight Report 2014, that several billion dollars were committed to three major projects in particular.
“We are investing around $2-billion in Venetia, our largest mine in South Africa, which will move the operation from openpit to underground and extend the life-of-mine beyond 2040.”
He further indicated that, in Botswana, the group had another multibillion-dollar mine expansion project under way – Cut 8 at the Jwaneng mine.
The group also hoped to bring a new mine – Gahcho Kué – on stream in Canada's Northwest Territories, which would further develop its portfolio in that part of the world.
In addition to this, the group continued to invest around $50-million a year in exploration in some of the world's most prospective areas, including Southern Africa, Canada and India.
Moreover, Cleaver highlighted that the group planned to invest in areas such as branding, marketing and raising retail standards.
“Our marketing strategy is focused on driving demand through our proprietary channel, Forevermark. We spend over $100-million a year on our marketing activities and we undertake campaigns through various channels – including TV, online and print – and in various markets,” he explained.
At the end of this year, the group would launch a major campaign – Promise – in the US, which was the world's largest diamond jewellery market.
"The aim of the Promise campaign has always been to link Forevermark’s promise and consumers’ own promises, while reinforcing the core values of the diamond dream. This year, we want people to renew their belief in the power of a promise.
"We have focused on creating a stronger emotional connection with consumers with our most powerful print and TV campaign to date. Promise will run in all our core markets, including the US for the first time," De Beers highlighted.
The campaign is said to be the latest in a long line of significant marketing campaigns over the all-important end-of-year selling season for the group.
Also, the group pointed out that it would be undertaking various activities across the value chain, ranging from improved mine efficiency through to a new approach to rough diamond distribution in its Global Sightholder Sales business.
“We believe our innovations and investments in our activities throughout the value chain will position us well for a continuation of strong business performance,” he stated.