The diamond industry has been severely hit by the difficult global economic environment, the world's largest diamond producer De Beers said on Friday.
The company, 45 percent owned by Anglo American, posted a 99 percent fall in first-half net profit and said rough diamond sales declined 57 percent to 1.4 billion U.S. dollars.
The company said net profit in the first six months of the year tumbled to three million dollars from 316 million dollars in the same period last year.
Output was cut due to weak demand in the first half year and production declined 73 percent to 6.6 million carats.
Overall costs in the group were slashed by over 50 percent and its workforce reduced by 23 percent.
De Beers said it would continue to take a cautious approach in terms of production, sales and cost management, "while anticipating the continued steady recovery of the industry".
Looking to the medium-term, it said diamonds had historically performed well in periods following recessions, with significant price growth seen in almost every recovery period dating back to before the 1970s.
"In the long-term, the fundamentals of the diamond industry remain strong. With no major new diamond discoveries in more than a decade, and with worldwide reserves at an all time low, diamonds will become more scarce," De Beer said.
Source: Xinhua
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