Cape Town, South Africa — MININGREVIEW.COM — 05 June 2008 – Surging global demand for high-quality diamonds from new markets such as China and India poses a supply challenge for the international diamond mining industry, according to a senior De Beers official.
Reporting from a World Economic Forum meeting here, Reuters quotes De Beers Group executive director Stephen Lussier as saying: “I think that as demand from new markets like China, India and the Middle East and Russia grows – particularly for high-quality and larger stones – the challenge will be finding the supply to meet the demand.”
He added that demand from these markets would more than offset expected lower sales in the United States, where a credit crisis has hit growth and knocked consumer spending.
“There is no doubt that the American consumer, who accounts for half the world’s consumption of diamond jewellery, is impacted and that will reduce sales,” said Lussier. Sales in China, Russia and the Middle East were all "growing strongly".
De Beers, in which Anglo American Plc holds a 45% stake, is the world’s biggest diamond group.