De Beers, the world's top diamond producer, has reported a 99% fall in first-half net profit, saying rough diamond sales slid 57% from a year earlier to $1.4 billion.
De Beers is 45%-owned by mining group Anglo American and controls about 40% of the rough diamond market. It said net profit in the first six months of the year tumbled to $3m from $316m in the same period last year.
'The industry has been severely impacted by the global economic environment being the most difficult in decades,' a statement said. The company said it would take a 'cautious' approach to production, sales and cost management.
The group slashed output due to weak demand in the first half, when production fell 73% to 6.6 million carats. Overall costs in the group were cut by more than 50% and the global workforce was cut by 23%.
