19/11/08 - The current international financial crisis is affecting the mining sector worldwide and Debswana is not likely to be spared the adverse effects of this development.
Despite this, Debswana’s position as the leading diamond producer remains strong and the company has the experience and resources to withstand the challenges.
The global recession may impact demand for rough diamonds in the short-term and Debswana is fully prepared to reduce production to be consistent with the prevailing level of demand for new rough diamond supply from our clients.
In this regard, Debswana is considering a number of options including the re-allocation of resources to projects that contribute to its growth and sustainability such as waste mining. Particular attention will be given to the continued safety and welfare of our employees.
Debswana and its partners are showing leadership during the economic crisis because of our confidence in the long term fundamentals of the diamond industry. Global diamond reserves are at an all time low, making diamonds rarer and rarer.
These increasing supply shortages forecast for the next decade, coupled with increases in consumer demand, will support industry growth in the long term and enable the diamond industry to bounce back from the short term impact of the global recession.
On the demand side, our partners at De Beers have invested heavily in a marketing programme, doubling its planned budget, to sustain consumer demand during the holiday buying period.
Esther V Kanaimba
Group Manager: Public & Corporate Affairs
Debswana Diamond Co.
Gaborone
Botswana
Tel: 3614216/71510011
Email: ekanaimba@debswana.bw
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