De Beers CEO Philippe Mellier has attributed the company’s successful 40-year presence in Botswana’s diamond industry to the establishment and cultivation of relationships between the diamond major and government, sightholders and consumers.

Describing relationships as the “foundation of success in the diamond industry”, Mellier said at the company’s first sight of the year, last week, that De Beers would continue to invest in the “outstanding” relationships that had enabled the group’s firm local success.

Referring to the 40-year relationship between the company and the government of Botswana, Mellier added that the relocation of De Beers’ international sightholder sales activity in 2013 had stimulated economic activity and elevated the country to one of the world’s leading rough-diamond trading destinations.

De Beers and the government of Botswana have a 50:50 joint venture company named Debswana, which mines diamonds at the Jwaneng mine – the world’s richest diamond mine by value.

According to De Beers, Debswana contributes around 30% of Botswana’s gross domestic product, 50% of its government’s revenues, and is the country’s main foreign exchange generator and largest private employer, with 95% of staff made up of Botswana citizens.

Turning to sightholders, Mellier stated that their relationship with De Beers had been central to key developments in the history of diamonds, whether by catalysing growth in beneficiation or growing demand in new consumer markets.

“We have been listening to sightholders’ views and are looking at a number of ways to strengthen our future relationship,” he noted.

The De Beers head added that perhaps the most important relationship was the one between the diamond industry and consumers.

“Ultimately, a consumer’s desire for diamonds is the only true source of value in the industry,” Mellier said.

Turning to the outlook for diamond jewellery, he noted that there were “good” signs coming from the US economy, with improved demand experienced over the holiday period.

In China, there were also “healthy” signs, with a positive outlook for sales around the Chinese New Year and expectations for a continuation of strong economic growth at around the levels seen in 2013.

“However, despite solid prospects for India in 2014, there remain some concerns about inflation and currency volatility in the short term,” Mellier cautioned.