Minerals off with a bang in 2010
That profitability has returned to the mining sector can be seen in latest data indicating that earnings from the country’s mines for the first two months of the year have already eclipsed that of the first quarter of 2009.
Diamond exports for the first quarter of last year amounted to P1.5 billion while for January and February 2010 alone, the industry has already earned P3 billion. Analysts believe the higher figures for this year are more a reflection of higher diamond demand and prices, although Debswana cut back production in the first quarter of 2009 due to low gemstone prices.
According to estimates from Harry Winston – a diamond company with production and retail interests – after plummeting in September 2008, rough diamond prices have generally recovered to pre-recession levels.
Recovery is being driven by demand in China, India, Europe and increasingly the United States, that has traditionally been the main consumer of [continue reading]