Ralfe Expects to See Angolan, Russian Operations in ‘05

De Beers Managing Director Gary Ralfe has big expectations for the mining giant this year, including a return to Angola, an increase in Russian prospecting activities and solid diamond jewelry sales led by the U.S.

“I would be extremely disappointed if we were not prospecting in Angola by the end of this year,” Ralfe told reporters in South Africa this morning. The company left Angola on a sour note a few years ago, leading to a legal battle that was recently settled.

In another signal of expanding mining operations, Ralfe said prospecting in Russia will be accelerated, with the intention to start mining in the country.

At the other end of the pipeline, he expects diamond jewelry marketing to generate increased sales, especially in the main retail market, the U.S.

“De Beers anticipates solid demand for diamond jewelry in 2005 as the U.S. economy continues to grow,” he said.

Finally, Ralfe added that De Beers hopes to close a black economic empowerment (BEE) deal by the end of the year, an issue of great importance to the South African government seeking to shift some of the country’s natural riches, mostly held by the white minority, into black hands.

“We have committed ourselves to implementing BEE in the course of this year.”