Diamond miner says 2006 profit rose

CAPE TOWN, South Africa --Diamond miner De Beers SA said Friday that its earnings rose 32 percent for the year on higher sales.

Net income rose to $730 million for the 12 months through Dec. 31 from $554 in the previous year, the company said in a statement. Revenue rose 12 percent to $1 billion.

"The outlook for further growth in retail diamond jewelry sales remains positive, with India and China likely to be leading growth markets," De Beers said.

De Beers also said it entered an agreement with South Africa's Department of Minerals and Energy to combine the West Coast operations of Alexkor and De Beers Consolidated Mines into a standalone company. Under the terms of the transaction, the company will issue a 20 percent stake in its Namaqualand Mines to the department.

De Beers is 45 percent-owned by resource giant Anglo American PLC, while the Oppenheimer family holds 40 percent and the government of Botswana 15 percent.

De Beers also said that Rene Medori, finance director of Anglo American, will join the board of De Beers, replacing David Hathorn, executive director of Anglo American.

In addition, the company said Ollie Oliveira will step down from the De Beers board Feb. 28.