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De Beers Chief wants more investment in industry

The De Beers Group Chief Executive, Philippe Mellier has said investment will be key in achieving a lasting success of the diamond industry.

“Maintaining success in the diamond industry is dependent upon investment to sustain supply, finance and demand,” said Mellier.

Mellier pointed to De Beers’ investment in mining projects in Botswana, South Africa and Canada to deliver sustainability of supply, in its distribution strategy to ensure the most efficient ways of bringing the product to market, and in the sustainability of demand through Forevermark.

“The product we mine is finite; the trade is capital intensive; and consumer attitudes and preferences continue to evolve. As such, maintaining success depends on the sustainability of supply, the sustainability of finance and the sustainability of demand. If we each play the right role in supporting these three areas, then all parts of the value chain will benefit”

“Whether focus is on economies of scale, improved use of technology or more efficient distribution, sustainably capturing value in the midstream requires ongoing investment so that customer’s demand remains strong and reflective of the true value of your product and service proposition,” said Mellier.

The reception marked the first anniversary of Global Sight holder Sales’ move from London to Gaborone, Mellier extolled “the seamless transition is testament to all the hard work put in by Government, the Sight holders, the local community, and the men and women at the De Beers Group of Companies.”

He added that in Botswana, DeBeers continues with its hugely important investment in the Cut-8 project at Jwaneng which is estimated to deliver over 100 million extra carats from one of the world’s richest diamond mines.

“We believe that the industry is approaching one of the greatest periods of opportunity in living memory, and we are committing to major investments across the pipeline so that we can unlock the full value presented by the industry’s outstanding fundamentals,” he said.

Highlighting on the falling oil prices, Mellier said the recent downtrend in oil prices is also expected to be important an important factor in 2015 for the diamond industry. US is expected to be a major benefactor of the falling prices.

“All of this shows that there is ample opportunity for the industry. The question for all of us to ponder is how we best unlock this opportunity for the benefit of our own businesses. One of the star performers in the global economy is expected to be the U.S., which is clearly good news for diamonds as this is the major destination for diamond jewelry sales,” he said.

Mellier revealed that in South Africa, the Venetia underground project will extend the life of South Africa’s largest diamond mine to 2044. “Significant progress has been made in the main constructions throughout 2014 and the project will deliver over 80 million further carats from this deposit,” said Mellier.

He added that in Canada, progress at Gahcho Kue, one of the largest new developments in the diamond world, is very positive and we are eagerly looking forward to receiving the first production from this leading new mine within a couple of years.

In Namibia, DeBeers has opened the Sendelingsdrif mine following the development work undertaken over the preceding two years. This mine forms an important part of the extension of the lifespan of Namibian operations and further bolsters our production capacity in the years ahead.

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China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

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Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

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Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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