Petra Diamonds predicts strong diamond prices in 2011

Mining major Petra Diamonds is foreseeing strong diamond prices in 2011. The diamond prices have shown ability to rise post slowdown and continued into 2010. In 2010, the rough diamond prices increased 26 percent, reports suggest. Also, Petra reported a 44 percent rise in its fiscal first-half sales to value $90 million (after prices increased), reports say. Prices increased by 38 percent at Petra’s Cullinan mine in the fiscal first-half.

In the company’s annual general meeting, Petra’s CEO Johan Dippenaar noted that with major global mines reaching or having reached their peaks and the rising demand from India and China could lead to foreseen supply shortage in the future.

Production at the company amounted to 582,102 carats in the said period. The company is aiming for 1.3 million carats of production for the full financial year till June. It is also positive about expanding its production and has set production targets to more than 2,5-million carats by the 2014 financial year and to three-million carats by the 2019 financial year, reports say. Its assets include Cullinan mine where it is implanting expansion to reach a yearly production of 2,4-million carats a year by 2019, from just over 920 000 ct in the 2010 financial year. At its Koffiefontein mine, production would be taken to 117 000 ct/y by 2017, comprising 104 000 ct from underground operations and 13 000 ct from the tailings. Production at its Kimberley underground operations in South Africa which began in May 2010, with a stockpile of 500 000 t will be taken to 100 000 ct in the 2011 financial year, rising to 180 000 ct/y after the commissioning of a second production plant by June 2011. Petra has implemented a three-year expansion plan at its Williamson mine in Tanzania. It is expected to produce 600 000 ct/y.