De Beers 1H Diamond Production More Than Doubles

23rd Jul 2010 07:25

By Robb M. Stewart Of DOW JONES NEWSWIRES JOHANNESBURG (Dow Jones)--De Beers SA, the world's largest producer of rough diamonds, Friday reported a more than doubling in output in the first half of the year and said that although the global economic climate remains fragile, it has been encouraged by demand from Asia. Diamond sales for the period were 84% higher at $2.6 billion, which the company said in part reflects a rise in gem prices over a year ago. This helped the Johannesburg-headquartered company to net earnings of $301 million from $3 million a year earlier. De Beers earlier this year received a $1 billion injection from its three shareholders so it could cut debt and strengthen its balance sheet after a year in which gem output slumped 49% due to weak global demand for luxury items. Founded in 1888 and taken private in 2001, De Beers produces and markets some 40% of the world's rough diamonds by value. It is 45% owned by Anglo American PLC (AAUK), 40% by the Oppenheimer family and 15% by the government of Botswana. Production for the six months rose to 15.4 million carats from 6.6 million in the same period last year, De Beers said. -By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; [email protected] (END) Dow Jones Newswires July 23, 2010 02:25 ET (06:25 GMT)