The main factor determining the current state of the diamond market is the global financial crisis. The situation on the leading financial and stock exchanges is still fairly dramatic. The labour markets in the US, Europe and Japan are also not in the best shape. Under these circumstances the availability of credit for diamond market players has declined drastically.
Alexander Matveyev, Member of the Federation Council of the Russian Federal Assembly, First Deputy Chairman of the Federation Council Committee on Northern Territories and Indigenous Minorities, Mining Engineer, Academician of the Russian Engineering Academy, Doctor of Economic Sciences, Professor, worked as Chief of Industry Department of the Yakutsk Region Committee of the CPSU, Chairman of the Yakutia Planning Committee, Vice-President and First Vice-President of ALROSA.
Valery Vladimirovich Rudakov – chairman of the Board of Directors of CJSC Polyus, chairman of the Committee for precious metals and precious stones of the Chamber of Commerce and Industry of the Russian Federation. In 1999-2002 - Deputy Minister of Finance of the Russian Federation and head of the State Repository for Precious Metals.BHP Billiton’s diamond earnings fell in fiscal 2007-08 on higher exploration costs, while strong demand in China for its other commodities drove total group profits to record levels, RAPAPORT reported.
The mining giant said Monday, in its preliminary annual earnings report, that its diamond and specialty unit’s underlying EBIT (earnings before interest and taxation) fell 4.1 percent to $189 million. Diamond revenues, however, rose 8.5 percent to $969 million as a result of higher diamond prices.
The revenue rise was offset by increased exploration and development expenses and unfavorable exchange rate movements of the Canadian against the U.S. dollar, the company explained.
BHP said it increased exploration spending for diamonds in Angola, potash in Canada and for titanium minerals in Mozambique, all part of the diamond and specialty group.
During the year, the company completed development of its Koala mine in Canada at a capital cost of $176 million, within its $200 million budget. It also agreed in May 2008 to sell its stake in its Angola exploration projects - Alto Cuilo and Luangue – to joint venture partner Petra Diamonds.
BHP earlier reported that production at Ekati rose 4 percent to 3.349 million carats in the fiscal year.
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