De Beers is likely to achieve stable production next year and begin repaying shareholder loans while it considers approaches from financial institutions to set up an investment instrument using diamonds, said outgoing managing director Gareth Penny, Antwerpfacetsonline reported. 
The production forecast for this year is 30-33 million carats, building up to a sustainable 40 million carats or more next year.
De Beers has received many requests from financial bodies to become involved in a fund that will give investors the opportunity to invest directly in diamonds since investors may prefer physical wealth over shares following the global financial crisis, Penny said in an interview with miningmx.com.
"It's very interesting, because it's part of a new mindset where people are seeing diamonds as a store of value. We've had so many things to get our minds around but we're interested. We're thinking about the implications. There are certainly people already buying diamonds for investment purposes but not necessarily in a formalised fund.
De Beers estimates less than 1 percent of diamonds sold would fall into the investment category. It has not yet decided what role it would play in such funds.
"Up to now we've said this isn't our business. There are a number of aspects that make it complex, such as the fact diamonds aren't fungible and that people want assurances how it would work. Though it's not going to be a major driver of the business I've certainly not seen this level of interest in the time I've been in this post."
De Beers announced in July that Penny would be standing down as managing director after five years. A successor has not yet been named.
Penny said that a relisting of De Beers as a publicly traded company was not being considered despite market rumours. "A listing isn't something we as De Beers management or our shareholders are working on," said Penny. "Our focus is to get this business back in shape and reward our shareholders for all their patience and support they've given us."
He said the company was working on reducing a range of loans and debts that built up following the onset of the global financial crisis two years ago which slashed demand for diamonds and led the firm to sharply reduce output.
He said De Beers was also taking a fresh look at the possibility of investing in Angola after it learned that the Angolan government is revising its diamond laws.
"We're being informed that by the end of this year there will be a new diamond act in Angola that will create a far more benign environment for companies to operate," Penny says. "I think the government has clearly taken note a number of major companies aren't exploring for diamonds in Angola and they're asking themselves why. I think they're taking measures to address that."

Rough&Polished