De Beers Group has launched its new Origins strategy, a comprehensive five-year plan aimed at increasing value across its operations from mining to retail. This strategy includes streamlining the business and concentrating investments on high-return projects in core upstream assets, midstream technologies, natural diamond retail, and synthetic diamond technology solutions.

Driving Sustainable Growth

As the natural diamond market recovers, De Beers plans to leverage its top-tier mining assets, iconic retail brands, and proven ability to generate consumer desire for diamonds. This approach is designed to drive sustainable growth amid declining global diamond production and strong demand fundamentals.

Leadership Insights

Al Cook, CEO of De Beers Group, highlighted the strategy's focus on transforming De Beers into a streamlined, technology-leading, and luxury retail powerhouse. He noted the compelling outlook for natural diamonds due to declining global supply and increasing consumer differentiation between natural and lab-grown diamonds.

Streamlining Operations

De Beers is set to achieve over $100 million in sustainable annual cost savings through reorganization and focused capital spending. Additional savings will come from disposing of non-diamond assets, deferring non-core projects, and selling non-strategic equity holdings.

Focused Upstream Investments

De Beers boasts a competitive portfolio of mining assets with significant production capacity and reserves. With global natural diamond production expected to decline and G7 sanctions affecting Russian diamond flows, De Beers' assets are well-positioned. The company will focus upstream investments on high-return projects such as the Venetia Underground in South Africa and the Jwaneng Underground in Botswana, while exploring future projects in Namibia and Canada as industry dynamics warrant. Exploration will be refocused on Angola, considered the most prospective region globally.

Integrating Midstream

De Beers aims to revolutionize the midstream segment through its digital portfolio, enhancing efficiency, reducing working capital, and lowering rough diamond inventory levels. The company's Tracr technology will play a crucial role, offering valuable data for new diamond import regulations in G7 countries and enhancing consumer confidence by linking diamonds to their source.

Resetting Downstream

De Beers plans to rejuvenate demand for natural diamonds with new marketing strategies aimed at modern consumers. Collaborations with retailers will be central, as demonstrated by the success of the Seize the Day campaign, which involved over 22,000 retail stores. This year, De Beers will expand strategic relationships with major retailers like Signet Jewelers in the U.S. and Chow Tai Fook in China. Additionally, De Beers will scale its luxury De Beers Jewellers brand globally and refocus its Forevermark brand on the growing Indian market.

To support this initiative, De Beers is introducing a new retail-facing diamond verification instrument, bringing its leading lab-grown diamond detection technology to retail counters.

Pivoting Synthetics

De Beers' Element Six business, a global leader in synthetic diamond development for industrial purposes, will shift focus from lab-grown diamonds for jewellery to industrial applications, leveraging its long-standing expertise in synthetic diamond technology.

The Origins strategy represents a transformative plan to streamline De Beers' operations, focus on high-return investments, and drive sustainable growth. This comprehensive approach aims to enhance the value and desirability of natural diamonds for modern consumers, positioning De Beers as a leader in the diamond industry for the future.