Cleaver is new De Beers CEO

JOHANNESBURG (miningweekly.com) – Bruce Cleaver, 51, is the new CEO-designate of De Beers. He will take over from Philippe Mellier on July 1.

After a half-decade at the helm, Mellier, who is ten years Cleaver’s senior, has honoured his commitment to step down as CEO after five years.

Anglo American on Friday also announced that its base metals CEO, Duncan Wanblad, would add Cleaver’s strategy and business development portfolios to his responsibilities, also from July 1.

De Beers chairperson and Anglo CEO Mark Cutifani said Cleaver was able to provide strong continuity at an important stage in the diamond market's recovery, owing to his having been working alongside Mellier on commercial and government relationships, and alongside Anglo on shaping its new strategy.

The formerly widely diversified Anglo, which earlier this year restricted its focus to diamonds, platinum and copper, is in the process of disposing of its coal mines in South Africa, Australia and Colombia as well its Kumba Iron Ore operation in South Africa.

Insight into Cleaver’s crystal-clear grasp of the diamond business is provided in his attached video interview with Creamer Media's Mining Weekly Online, which took place last year.

A former lawyer with an applied mathematics degree from the University of Cape Town, Cleaver joined De Beers as general counsel in 2005 from the law firm Webber Wentzel, after an early career in investment banking.

He rose quickly within the group, advancing from commercial director in 2007 to co-acting CEO in 2010, with Stuart Brown, now CEO of the London Aim-listed Firestone Diamonds.

Cleaver's appointment as executive head of strategy, business development, corporate affairs and technologies in 2011 coincided with Mellier leaving French company Alstom to join De Beers as CEO.

Last month, French newspaper La Tribune reported that Mellier was in the running to head Air France.

In Anglo's release to Creamer Media’s Mining Weekly Online, Cutifani made the point that Cleaver was taking over at a time when the structural dynamics of the diamond market continued to improve, led by the strength of consumer demand for diamond jewellery and Cleaver himself emphasised the importance of De Beers growing its position in the luxury world.

Mellier, who served under BHP Billiton chairperson Jac Nasser at Ford Motor company, is seen to have led De Beers with agility during a challenging period.

The Mining Journal quoted RBC Europe diamond analyst Des Kilalea on his contention that the more flexible approach of De Beers under Mellier, of lowering prices and allowing clients to leave goods on the table, would not change under Cleaver.

Economic Calendar’s Donald Levit highlighted the fragile nature of the current diamond recovery and expressed the view that De Beers - the world’s largest diamond producer by value - would continue to keep a lid on production by mining between 26-million and 28-million carats in 2016, compared with the 28.7-million carats in 2015.

The underlying earnings of the 85% Anglo-owned De Beers shrank 72% last year to $285-million. (Also watch attached video which highlights 2014 buoyancy).