De Beers Group unveiled its new Origins strategy to enhance value across its business from mining through to retail. The business will be streamlined and investments will be focused on high return projects.As the natural diamond market continues to recover, De Beers will harness its industry-leading portfolio of mining assets, its iconic retail brands and its track record of generating desire for diamonds.

Al Cook, Chief Executive Officer of De Beers Group, said: “We are reinventing every part of De Beers to grow value. Through delivery of our Origins strategy, De Beers will be streamlined, focused, and a leader in diamond technology, provenance and luxury retail. We will recreate the magic of natural diamonds for modern consumers.

Business streamlining

De Beers Group is well on the way to delivering over $100 million in sustainable annual cost savings through a reorganisation and by focusing its capital spend. One-off cost savings will also be delivered through the disposal of non-diamond assets, deferments of non-core projects and the disposal of non-strategic equity holdings.

Focused upstream

De Beers has a highly competitive portfolio of mining assets that are among the best on the cost curve and have substantial production capability and reserves. With global natural diamond production forecast to decline over the coming decade, and as G7 sanctions impact the flow of Russian diamonds into key diamond consuming countries, De Beers’ portfolio is well positioned for the future.

Integrate midstream

De Beers has a rough diamond sales model that adds value and reduces volatility for both De Beers and its partner countries, underpinned by long-term contracts with its Sightholders.

Technology is poised to revolutionise the midstream, and De Beers will be at the forefront of this trend through its digital portfolio. The results will be greater efficiency, lower working capital and lower rough diamond inventory levels. De Beers’ Tracr technology is not only valuable for registering the information required under new diamond import rules within G7 countries, but also offers an enhanced consumer proposition through connecting diamonds to their source.

Reset downstream

De Beers has a track record for driving growth in demand for natural diamonds and will evolve its approach for a new generation of consumers. This will involve growing desire for natural diamonds through the reinvigoration of category marketing, embracing new approaches that maximise reach and impact.

This year, De Beers will progress strategic relationships with leading retailers such as the collaboration recently announced with Signet Jewelers in the U.S. and a collaboration with Chow Tai Fook in China.

De Beers will also evolve its proprietary retail brands, scaling up its global luxury De Beers Jewellers brand whilst refocusing its Forevermark brand on the fast-growing Indian market.

Pivot synthetics

De Beers Group’s Element Six business has been a global leader in synthetic diamond development and manufacturing for industrial purposes for more than 70 years. Building on its expertise, Element Six will suspend production of lab-grown diamonds for jewellery and focus on its position as a world-leading provider of synthetic diamond technology solutions for industrial applications.