DCBM watches out for dip in SA diamond output

Diamond mining in South Africa may not yield more diamonds for the De Beers Consolidated Mines (DBCM), rather a drop in diamonds is expected. The company, an arm of the De Beers group, expects a 15 percent drop in diamond output to amount to 12.7 million carats in 2008, from about 15 million carats last year, according to reports.

The reason for a dip is the DBCM decision to sell some of its mines like the Cullinan, Koffiefontein and Kimberley Underground. However, the company will expect support in diamond production from two new projects, Voorspoed in the Free State and the South African Sea Areas marine operation. There is no dip in revenue anticipated in view of rising diamond prices.