Unveiling its results for the first half of 2010 on Friday, De Beers said the jump in sales was attributable to increased demand in retail markets, particularly India and China, as well as restocking by the trade.

"The increase in DTC H1 (first half) sales by 84 percent is a result of increased demand from our sightholders and the market, and reflects an increase in both volume and prices achieved compared to H1 2009.

"DTC rough diamond prices are now, on average, comparable to June 2008 pre-recession levels," the group said.

Anchoring the improved sales, production across the De Beers' Group mines was up 134 percent in H1 2010 compared to the corresponding period last year. The diamond group produced 15.4 million carats in the first half of 2010, with Debswana mines contributing 10.267 million carats or 67 percent of the total.

The increased productivity and sales boosted De Beers' net earnings to US$255 million (P1.75 billion), representing a phenomenal increase from the corresponding period's net earnings of US$3 million. Net earnings for H1 2010 are a turnaround from De Beers 2009 year-end net loss of US$743 million (P5.1 billion).

De Beers Group Chairperson, Nicky Oppenheimer, said: "This time last year, in the midst of the global recession, we transformed our business taking short term pain for long term gain. One year later, our results for the first half of 2010 show the success we've had in managing costs, creating operating efficiencies and improving our balance sheet.

"With renewed demand driving significant increases in production, prices and sales, we are now focussed on securing the recovery while insulating the business from further market volatility."

De Beers' polished diamonds retail sector also witnessed growth in H1 2010, with "double digit" increases in consumer demand from China and India, supported by a "modest improvement" in demand from the United States. De Beers' Forevermark diamond brand has expanded rapidly across Asia with 289 doors in China, Hong Kong and Japan.

De Beers group officials predicted a mixed, but largely positive outlook for the diamond sector going forward.

"While encouraged by the strengthening diamond demand in H1, the global economic climate remains fragile especially in the important diamond markets of the US, Japan and Europe, so we look to the remainder of 2010 with caution and measured optimism.

"A period of market stabilisation is expected in H2," the group said.

With restocking activities largely completed, further demand growth is dependent on increases in consumer demand; De Beers is particularly eyeing the emerging markets of China and India for future demand growth.