De Beers: rough diamond sales rise 27 per cent, earnings by 21 per cent

JOHANNESBURG – Diamond giant De Beers says its rough diamond sales rose 27 per cent in 2011, with earnings up 21 per cent.

Thursday’s annual report says the company mined fewer diamonds – 31.3 million carats compared to 33 million in 2010 – and gave priority to maintenance as demand slumped in the second half of the year. Rough diamond prices rose 21 per cent in 2011.

Gross earnings totalled $1.7 billion. Underlying earnings rose 62 per cent, or by $968 million, for total sales of $7.38 billion.

De Beers said it expected growth in jewelry sales to continue in 2012, mostly in China and the U.S., though not at the same rate.

It was the company’s first report since Anglo-American bought the Oppenheimer family’s shares to become the majority shareholder. Family patriarch Nicky Oppenheimer remains chairman of De Beers.