DE BEERS

t the closing of the deal, Anglo-American will have an 85 percent in stake in De Beers, the largest diamond distributor in the world.

Diamond producer De Beers expects global demand growth for rough diamonds to set a new record this year on the exceptionally strong performance of its key U.S. market and robust demand in China and India, the head of the company's distribution arm said.

Diamond producer De Beers said on Friday it had signed a new 10-year contract for the sorting, vaulting and sales of the diamond production of Debswana, its joint venture with the government of Botswana.

De Beers, the world's largest diamond producer, returned to a profit in 2010 as production rose 34 percent and diamond prices recovered to pre-crisis levels, although it remains cautious about the market this year.

Rough diamond prices are expected to rise further this year, but will not match last year's sharp double-digit percentage rebound, which was boosted by restocking from jewellers, the head of De Beers sales division said on Monday.

Russia said it is considering selling off the diamonds it bought last year for $1 billion from state-owned Alrosa, the world's largest rough diamond producer.

Diamonds giant De Beers has set its eyes on Indian market in a big way. The company has decided to launch its 'Forevermark' brand in India, with an aim of creating a more affordable line of jewellery targeted at the middle income segment.

As the world's largest diamond congress is meeting in Russia starting Monday, July 12, 2010 the Russian government has set the ball rolling with the announcement of the government buying out $1 billion worth of diamonds from the country's Alrosa, a monopoly firm that was plagued with global economic crisis.

Top diamond producer De Beers bolstered its balance sheet on Thursday with a $1 billion rights issue and bank refinancing as it swung to a annual $220 million underlying loss after demand plummeted for luxury goods.