Bruce Cleaver Appointed As New Chief of Diamond Producer De Beers

London-listed miner Anglo American has appointed Bruce Cleaver to head its De Beers diamond business amid a restructuring in the wake of a commodity slump.

Cleaver, 51, head of strategy and business development at Anglo, who has been at the company for over a decade, will start as chief executive at the world’s largest diamond producer by value on July 1.

The change at the top comes as the diamond industry shows tentative signs of recovery after its toughest year since the financial crisis due to slowing demand from China.

“The structural dynamics of the diamond market continue to improve, led by the strength of consumer demand for diamond jewellery,” Anglo’s chief executive Mark Cutifani said in a statement.

De Beers reported earnings before interest and tax of $571m for last year, down 58 per cent compared with 2014.

Its parent Anglo is focusing on copper, diamonds and platinum group metals as it targets $3bn-4bn of asset sales in 2016 to help repay debt amassed during the commodities boom of the last decade.

In April the company sold its niobium and phosphates businesses in Brazil to China Molybdenum for $1.5bn.

Mr Cleaver succeeds Philippe Mellier, 60, who held the top position at De Beers for five years. “Having steered through some of the diamond industry’s toughest times and with the market showing signs of recovery, now is the right time for me to pass the baton to the next generation,” Mr Mellier said.

He told the Financial Times this month that the diamond market is bottoming, with rough and polished diamonds’ stock levels very close to normal.

Last year’s tough market led De Beers to slow production. It also forced the company to become more flexible in its relationships with buyers, allowing clients to defer purchases of gems.

A change in leadership could renew concern in diamond cutting centers about the company’s sales strategy, analysts at RBC said.

“Mellier’s departure will not be welcomed by the diamond trade given the still fragile state of the market and De Beers’ efforts to inject some stability into the sector,” they said.

Duncan Wanblad, chief executive of the FTSE 100 miner’s base metals business, will add Mr Cleaver’s strategy and business development responsibilities to his existing duties, Anglo said.