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De Beers to Halt Work at Diamond Mines

Firm last suspended production during the Great Depression

By Nick McMaster,  Newser Staff

Posted Feb 24, 2009 2:19 PM CST
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(Newser) – De Beers has temporarily shut down its diamond mines in Botswana due to low demand for the precious stones, the Telegraph reports. The firm’s Botswana mines account for half of De Beers’ output, and about a fifth of diamond production worldwide. De Beers was not able to sell a single diamond from Botswana in November and sold only very few in the two months after.

Of the four mines operated by Debswana, a joint venture between De Beers and the Botswana government, two will suspend work through the year. Two others, including Jwaneng, the world’s most-valuable diamond mine, could continue production in mid-April. De Beers noted that the last time it had suspended operations completely at any mine was during the Great Depression.

An open pit is seen at a Debswana mine, a joint venture between De Beers and Botswana's government, in Jwaneng, Botswana, Monday March 17, 2008.
An open pit is seen at a Debswana mine, a joint venture between De Beers and Botswana's government, in Jwaneng, Botswana, Monday March 17, 2008.   (AP Photo/Themba Hadebe)
A visitor walks near a display in the Diamond Museum in Tel Aviv, Israel, Monday, Feb. 11, 2008.
A visitor walks near a display in the Diamond Museum in Tel Aviv, Israel, Monday, Feb. 11, 2008.   (AP Photo/Sebastian Scheiner)
Model Lauren Gish wears Martin Katz jewerly: an emerald-cut ring, and five diamond bangles at the Oscars Designer Challenge.
Model Lauren Gish wears Martin Katz jewerly: an emerald-cut ring, and five diamond bangles at the "Oscars Designer Challenge."   (AP Photo/Damian Dovarganes)
Diamond-cutting expert Jean Paul Tolkowsky displays the replica of the 273.85 carat finished De Beers Centenary Diamond.
Diamond-cutting expert Jean Paul Tolkowsky displays the replica of the 273.85 carat finished De Beers Centenary Diamond.   (AP Photo/Aijaz Rahi)
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COMMENTS
Showing 3 of 7 comments
Guest
Mar 30, 2009 2:08 AM CDT
Guess 50% discount isn't in deBeers' vocabulary. Of course, I don't see prices going down much in electronics either. Sure no-name stuff is getting discounted and no-name stuff is cheap, but on following name-brand items, the prices are pretty much the same now as last year or the year before. Maybe it's gone down a bit as new, better performance items come on the market, but prices haven't come down much.
Shannonals
Feb 25, 2009 2:26 AM CST
Ouch, another Great Depression reference
Mr.C
Feb 24, 2009 8:58 PM CST
^yup yup anchower

De Beers asks three largest shareholders for a $500M loan
Sun (UK)

Shuttered mine's produce about a quarter of the world's diamonds by value
Financial Times (UK)

Money • World

 
Africa • diamond • sales • mine • De Beers • Botswana • gems

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