Still opportunities to turn around depressed diamond industry, says former De Beers CEO

The chairman of Ninety-One and former group CEO of De Beers, Gareth Penny, said there are still opportunities to turn around the depressed diamond industry amid a global squeeze for the gemstone.

Demand for natural diamonds has weakened as younger buyers spend less on traditional jewellery and are drawn to cheaper lab-grown gems.

The shifting consumer demands, geopolitical pressures and evolving supply chains have sparked questions about the diamond sector's ability to keep up with changing times.

Penny is among the mining executives at the four-day Mining Indaba currently underway in Cape Town.

He weighed in on the diamond sector’s future on the sidelines of Tuesday’s programme.

“I think the number one thing is this industry needs a big global leader. That, in my view, needs to be De Beers. For a whole variety of reasons, both on the side of the mining side in terms of what percentage of diamonds it now mines, and probably more importantly, in terms of how much it supplies to the market and how it supplies them.

“That leadership position has been diminished and challenged. So, the number one priority for me would be to see the reestablishment of De Beers as the real force that it used to be in the industry."

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