Of De Beers politics and strategy

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Gareth Penny's resignation as De Beers Chief Executive Officer (CEO) will not be the company's most significant event in 2010. There are far more pressing issues that De Beers will be remembered for this year by the industry.

Despite all the speculation as to why he is stepping down, all of which are essentially irrelevant at this stage, the reason he has given for the resignation should be accepted and respected.

De Beers announcement, which came as part of its 2010 interim report, noted that Penny is leaving the company in a strong position.  The company reported that rough diamond sales rose 84 percent to $2.63 billion and that net earnings grew to $301 million, from $3 million the previous year. However, the most encouraging aspect of the report was that De Beers has restructured its debt and therefore finds itself in a far healthier position than a year ago. Reducing the company's debt by 40 percent may prove to be Penny's greatest legacy in steering the recovery and the most significant favor he pays to his successor.

Editor's Comment
Diplomatic relations must be on equal footing

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