The Future of Mining Summit 2025 - Presentation by Paul Rowley EVP, Diamond Trading , De Beers Group

That's good. Thanks. Honorable minister, distinguished guests, colleagues, and friends, all protocol observed. Good morning. As always, it's a privilege to stand before you today here at the Future of Mining Summit, an event that continues to shape the dialogue not only of mining but indeed of the broader industry. But perhaps on a lighter note, just explaining why the water's here, as Dorothy said in the Wizard of Oz as she tapped her ruby slippers, there's no place like home. Although as I was sitting in Vegas, perhaps tapping my diamond slippers, I have to say I was very glad to get back and I'm sure a number of other people, Kelly being one, and hence the water. I think it's good to be back. So forgive us if we're a little hoarse. Last week indeed we were at the Las Vegas show along with the president, the minister, a delegation of industry colleagues, and we're all there really to understand what's happening. JCK is always a big week for the diamond industry and with everything going on in this various world of today, geopolitical tensions, whether it's conflicts, Ukraine, Russia, the Middle East, as we heard over the weekend, no longer just Israel, Palestine, but now Iran, and of course tariffs. Then we entered the JCK with a degree of trepidation. However, and perhaps while we're smiling a little, we were generally pleasantly surprised and I'm pleased to report that there is indeed some cautious positivity coming from the floors of Vegas. And that's not the casino floors, that was the diamond floors. But these steps, which include telling the unique provenance story behind every diamond, focusing on safe, ethical, and sustainable production, emphasizing the difference in emotional, cultural, and financial value between natural and lab grown, or perhaps as we prefer to refer to them, synthetics. And with all these challenges, working together has never been more important. And the recent drive to see producing countries come together under the Natural Diamond Council to fund category marketing is a great example of the type of collaborations that are required, and I wish the minister, our CEO Al, and the industry every success in finalizing this at this summit in Luanda this week. So let's touch on the state of the diamond industry: resilient yet transforming. And while the future, I believe, is indeed bright and those tentative green shoots coming out of Vegas, there is indeed the present that still has a few challenges. As we know, the global diamond industry is navigating a period of profound transformation. Demand patterns are shifting, driven by evolving consumer values, especially among the younger generation, specifically the millennials who seem to be prioritizing provenance, sustainability, and authenticity. Frankly, all of these things can be a little confusing as we try to adapt. At the same time, geopolitical tensions and macroeconomic uncertainty have introduced new complexities into the global supply chains. These challenges are forcing everyone in the diamond industry to make tough short-term decisions. But these are really important and necessary decisions to put ourselves in the best place and the best position to make the most of the recovery when it comes. And I have no doubt the recovery will come and is coming. But I also know that it will not happen by itself. The industry needs to earn that recovery by working together to rebuild desire and demand for diamonds. Shared effort, shared commitment, and shared success. As the world's leading diamond company and the world's leading diamond country, De Beers and Botswana are pivotal in leading the industry to success. That's why the new agreements we signed earlier this year are so very important. By reaffirming a 50-plus year partnership, we have sent a powerful message of stability and continued partnership to the rest of the industry and laid the incredibly strong foundation for the recovery to be built upon. I'd like to thank President Boko and his government for the way they have conducted the final stages of our negotiations and the vision and leadership they continue to show. So the road ahead, the future: innovation, inclusion, and impact. Looking ahead, we see the diamond industry evolving in three powerful directions: digital and traceable. Today's consumers want to know where their diamonds come from. That's why traceability is such a focus for the industry. And from the start of this year, all De Beers' rough diamonds above one carat in the rough have a single country of origin listed on its digital blockchain tracer. This ensures every diamond's journey is verifiable, ethical, and transparent, building trust with consumers and partners alike. Tracer really is a vital tool for the industry. It's the only platform that can give traceability at scale. So it was brilliant to hear that ODC formally announced at JCK that they too are registering their diamonds on the platform. So we welcome you. The more diamonds we can trace from mine to finger, the more we can tell consumers about not only where their diamonds come from, but more importantly whom they have touched on their journey and the real value they have created for the communities and countries in which they are produced. Two, beneficiation and local empowerment. The socioeconomic impact is something that really helps to differentiate natural from synthetics. And as such, we're delighted that our new Botswana agreements include initiatives to support both talent development within Botswana and the creation of the Diamonds for Development Fund. The fund has been designed to accelerate the diversification of Botswana's economy. It will focus on investing and supporting entrepreneurs in areas such as green energy, tourism, and agriculture, a number of which you've just seen from Kelly's presentation. And De Beers will begin with an upfront investment of 1 billion pula, and then we'll invest further contributions over the next 10 years that could total up to 10 billion pula. This is proof of our belief in Botswana and its people, brilliant Batswana whose lives have been and will continue to be shaped by the opportunities natural diamonds have created. Again, I'd also like to give credit to the government who had the vision and indeed the follow-through to support the creation of this great initiative. Three, sustainable and inclusive. Responsible and sustainable production is also imperative. As a global business involved in every stage in the diamond value chain, we recognize the impact we can have and understand the urgency for tangible action. So we're focused on achieving our science-based targets initiatives, SBTi-validated scopes one, two, and three carbon reduction targets by 2030, the only mining company to subscribe to meeting such stringent and respected targets. And I can assure you they're important. In conversations only last week with a major retail brand, they were again pushing to make sure that we're on track to make those targets, and 2030 is indeed our ambition. Sourcing renewable energy is a key priority, and we've made significant announcements in Namibia, Botswana, and South Africa this year. In Namibia, Namdeb and NamPower, Namibia's National Power Utility, signed a memorandum of understanding on the development and integration of wind projects into Namdeb's mining operations and the Namibian grid. Here in Botswana, Debswana and Botswana Power Corporation signed a memorandum of agreement on renewable energy certificates. This partnership will enable Debswana operations to access and demonstrate the use of renewable energy sourced from planned solar plants. And equally exciting is South Africa. The Inyoni K2 project, which is designed to provide renewable energy to the Venetia mine in South Africa, will start producing its first green electrons this year. So well on track for 2030. And whilst we were in Vegas, we also looked to the strategy, our Origin strategy for the future. From a diverse perspective, the engine that's providing these transformations is indeed our Origin strategy. Launched at JCK in 2024 and refreshed and updated at JCK last week, Origin is De Beers' blueprint for long-term value creation. It is built on four pillars: focus on upstream, integrating the midstream, resetting the downstream, and pivoting our synthetic business. So let's start for Botswana. What does this Origin strategy mean? Well, it means maximizing upstream value by focusing on high-return major projects like Jwaneng Underground. And I'm pleased to report this project is ahead of plan. As of the 1st of June, the Jwaneng decline, that's a tunnel, and I'm sure Andrew will talk about this later, but that's a tunnel into the earth, has reached 2,263 meters, making it 14% ahead of the project plan. So well done, Andrew. Integrating the midstream, my part of the world, by leveraging our industry-leading technology, we'll track our diamonds from the country of their origin to polished and jewelry sales. And of course resetting the downstream by investing in category marketing, as I spoke earlier, the importance of category marketing and dollars and every producer contributing appropriately. We're scaling our De Beers London, formerly De Beers Jewellers. We're refocusing our Forevermark brand, very much concentrating on the fast-growing Indian market, and we're using our new Diamond Proof technology verification instruments to increase consumer awareness of the difference between natural and LGD synthetics, an important part of everything we do. And through all of this, obviously the aim is to build a premium for De Beers' diamonds and Botswana's diamonds through origin. De Beers Group Origin is also De Beers Group's polished brand, which will leverage the provenance of diamonds from the four countries of Botswana, Namibia, South Africa, and Canada. Pivoting synthetics by exiting lab-grown diamonds for jewelry and focused on Element Six synthetics, the diamond business for technology solutions and ITC applications. Of course, we announced recently that we were closing Lightbox, our synthetic brand that was put in place to make sure we could educate and differentiate the consumer. That is very much done, and we've moved forward now to really pivoting back into industrial sections. So these four pillars are also underpinned by streamlining, which has been seen to make a sustainable $100 million reduction in our annual overheads. That's $100 million. And as announced last week, we'll also target an additional saving of $30 million. Origin is not just a strategy, it's a reinvention. Through it, we are reinventing every part of De Beers to grow value and create the magic of natural diamonds for modern consumers. Although we're confident in our strategy and ability to execute it, we know we can't do it alone, which is why we understand the importance of smart partnerships. Talking of which, partnerships have always been a big part of why De Beers has been so successful for more than 130 years, and we will continue to be successful well into the future. In the upstream, we work with our partner governments to recover wonderful diamonds safely, ethically, and sustainably and make sure the benefits of our diamonds are felt everywhere. In the midstream, we work with our sightholders and some of the world's finest cutters and polishers. And in the downstream, we work in partnership with the biggest retailers in the world, the largest diamond markets. We're currently driving natural diamond desire through collaborations with Signet Jewelers in the US, with Tanishq in India, and with Chow Tai Fook in China. So important to drive that natural diamond demand, and so important to have retailers equally contributing and matching our dollars in marketing. And of course, as much as we respect and appreciate all our partners, it's fair to say one very clearly stands out: Botswana, a global beacon. I say this because in addition to being one of our partners, Botswana is also, of course, one of our owners. And we couldn't be happier about this. This summit, endorsed by the Vice President and the Minister of Minerals and Energy, is a true testament to the country's vision and influence. And as we look to the future, we believe Botswana has the opportunity to become a center for innovation, sustainability, and ethical leadership in the diamond industry. So in closing, let us both seize the moment. Let us build on the strength of our partnership in a way that ensures we make the most of the recovery when it comes. Let us both use our passion and expertise to chart a course that ensures diamonds continue to be the source of pride, purpose, and progress for Botswana and for the world. Thank you for your attention. Hoola.