Gem Diamonds Says It Tripled Profits In 2011

London-based Gem Diamonds announced that it had tripled its profits last year.

According to the BBC, the diamond manufacturer credited the rise in profits to increased production at its Letseng mine in Lesotho.

diamondThe company said it will seek to expand the mine in an effort to double its capacity by 2014.

The BBC reported that pre-tax profits reached $155.7 million last year, a significant increase from $54.5 million in 2010.

Gem Diamond CEO Clifford Elphick told the BBC that rising demand in China played a key role in the company’s success.

The price of rough diamonds rose in the first half of 2011 to above pre-crisis levels due to demand from Asia, according to the BBC.

Gem Diamonds owns and operates two production mines – Letseng and the Ellendale mine in Australia, the BBC reported. It also has a mine under development in Botswana.

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