The Diamond Trading Company (DTC), the diamond marketing arm of the De Beers Group of companies, posted sales figures of US$ 6.15 billion for the year 2006. DTC’s sales performance constitutes the organisation’s second highest sales figures on record. The company’s performance is remarkable considering current market pressures. DTC balanced the restrictions in the Russian supply line through consolidation in China, India and the USA.
DTC’s Net earnings increased by 32 percent from US$ 554 million to US$ 730 million thanks to sales such as the group’s interest in the Canada Fort à la Corne joint venture. In addition cash available from operating activities increased by US$ 336 million to US$ 809 million.
The company’s continued upturn in performance has been attributed to operational and management related organizational behaviour reflecting in positive indicators. The design and execution of strategic partnerships contributed to DTC’s strengthened position. The sale of 26 per cent of De Beers Consolidated Mines to Ponahalo Holdings Limited, a Black Economic Empowerment consortium, will lead to organizational & cultural synergy and quickly boosted Net earnings.
“The Diamond Trading Company’s performance is a testament to our multi-platformed strategy that has allowed us to continue to expand our range of operations, marketing and social commitment. Although sales are down from last year, they still constitute our second highest and are indicator of our continued success,” said Anan Fakhreddin, Diamond Promotion Service (DPS) Director of the Diamond Trading Company.
The long-term partnership between De Beers and the Government of Botswana means that DTC will engage in a joint partnership with the government to create Diamond Trading Company Botswana. The new organisation will execute local sales and marketing activities in order to boost local diamond manufacturing.
Elsewhere in Southern Africa, a similar initiative in Namibia will see the Diamond Trading Company’s sales contract extended for an additional eight years. This will entail an equal partnership between De Beers and the Government of Namibia to form Namibia Diamond Trading Company. The new body will again enhance manufacturing through local sales and marketing initiatives.
Existent mines saw record production in 2006 of 51 million carats, a 2 million carat increase on 2005. A US$ 2 billion capital expansion programme demonstrates the company’s commitment to long-term production with an estimated 3.3 million carats and US$ 700 million increase in expected annual production with expansion ventures in South Africa and Canada.
In addition, DTC’s renewed focus on marketing activities has been highlighted for increasing global demand for diamond jewellery. Reports indicate global sales increased by four to five per cent, whilst emerging luxury markets in China & India contributed greatly. Meanwhile, independently managed retail businesses added to steady growth in Japan, the USA and strengthened presence in the UK & Dubai maintained incremental sales momentum.
About The Diamond Trading Company
The Diamond Trading Company (DTC) is the diamond marketing arm of the De Beers Group of companies and, as such, supplies approximately 60% of rough gem diamonds to the world’s leading diamantaries. The DTC is better known to the public for its famous slogan “A Diamond is Forever”.
About The Diamond Information Center
The Diamond Information Center (DIC), with offices worldwide, handles consumer public relations for all levels of the diamond industry-from mining to finished jewelry.
