A new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
De Beers’ Parent Company to Cut 85K Jobs
The layoffs include more than 1,500 jobs at De Beers as the company scales back diamond production for 2016.
London--Stung by the drop in commodity prices, Anglo American announced a “radical and aggressive” restructuring Tuesday that includes job cuts at De Beers amid scaled-back diamond production and the closure of another mine.
Speaking at Anglo American’s Investor Day, De Beers CEO Philippe Mellier said that the company will be cutting more than 1,500 jobs as its reduces diamond production to 26-28 million carats in 2016, down from 29 million this year.
In Botswana, the Damtshaa Mine will be put on care and maintenance while production will be reduced at Orapa Plant 1.
The mothballing of Damtshaa follows last week’s announcement that De Beers is placing its only diamond mine in Canada, Snap Lake, on extended care and maintenance and reopening only if market conditions improve, and its earlier announcement that it has sold the Kimberley Mines.
Mellier said because of the Snap Lake shutdown, De Beers will close its head office in Canada and open a smaller support center in Calgary. The company also will close offices in South Africa following the Kimberley sale.
In addition, De Beers has shuttered its Element Six industrial diamond plant in Sweden due to the drop in demand for diamond drill bits in the oil and gas industry.
During his presentation, the much-maligned CEO--who seemingly has weathered Martin Rapaport’s rallying of the diamond industry to push for his resignation--defended De Beers’ actions during this most recent downturn.
He said De Beers always has acted “very responsibly” in an effort to ensure profitability in the midstream, reducing rough prices a total of 15 percent while polished prices are down only 8 percent, giving cutters and polishers room to make money. The company also has given sightholders “unprecedented” flexibility when it comes to refusing goods.
Further down the pipeline, he revealed that De Beers has invested $20 million in additional marketing for the holiday season in the U.S., bringing back “A Diamond is Forever” for use in both Forevermark ads and a separate campaign that echoes the company’s generic advertising of the past.
“If you have been in the U.S., it is very difficult to miss the campaign,” he said.
Mellier listed the factors he says have contributed to the diamond industry’s “stock crisis,” none of which included the actions of De Beers or any other diamond producers: lower-than-expected consumer demand for diamonds
There is no “simple cause” to the industry’s stock crisis and, as a result, there is no single solution, he said.
The job cuts and scaled-back production at De Beers are part of a larger effort by its parent company to cut costs as profits diminish.
All told, Anglo American will be cutting 85,000 jobs in the next couple years as it sheds 60 percent of its portfolio and restructures into three business units--De Beers (diamonds), Industrial Metals (base metals and platinum group metals) and Bulk Commodities.
The company is selling off its coal and copper mining operations, and will have a total of about 50,000 employees when the restructuring is complete, down from 135,000.
In addition, Anglo American plans to relocate its London headquarters in 2017, moving in with De Beers at 17 Charterhouse St.
The Latest
Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
The move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
With Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
From now through mid-May, GIA will be offering the reports at a 50 percent discount.
Sponsored by the Las Vegas Antique Jewelry & Watch Show
The Patek Philippe expert will serve as personal curator for the brand-focused company.
For over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
The 553-square-foot shop is aboard the Carnival Jubilee cruise ship.
NDC filed a complaint against Skydiamond for use of phrases like “diamonds made entirely from the sky.”
John Carter received the AGS’s highest honor Tuesday afternoon at Conclave in Austin, Texas.
LVMH said the company performed well despite an uncertain geopolitical and economic environment.
B&D Sales and Service held a ribbon-cutting event for its new location in Cranston, Rhode Island.
It’s ultra-feminine and filled with gold, pearls, and soft pastels.
Emily Highet Morgan and Emily Bennett have joined the agency’s team.
Its updated book for mountings is also now available.
Joyce’s Jewelry sued the bank after cybercriminals drained its accounts of nearly $1.6 million through a series of wire transfers.
He is remembered by loved ones for his loyalty, integrity, and kindness.
Hosted by Freeman’s | Hindman, the sale will take place May 7-8.
The auction house said all 24 timepieces offered in its underground sale of rare and avant-garde watches quickly found buyers.
From lab-grown diamonds and AI to the inevitable Taylor Swift mention, here are some of Conclave’s most intriguing educational offerings.
From cybersecurity liability to trade show coverage, insurance experts share tips on how to build the right policy.
The charm is a modern rendition of the evil eye amulet that has been worn for thousands of years.
Ahead of its trade show next month, TJS awarded free registration and accommodations to one jewelry professional and three students.
By the end of this year, SRK’s diamond manufacturing complexes will achieve net zero emissions, one of an impressive array of achievements.
Members can still sell lab-grown stones, it said, but only natural gems are allowed on the show floor.
He is remembered for his charisma, passion, integrity, kindness, and wit.