Articles and News
Philippe Mellier Steps Down As De Beers CEO; Bruce Cleaver Succeeds June 01, 2016 (0 comments)
London, UK—Bruce Cleaver (left) will take the helm as CEO of the De Beers Group of Companies, following Philippe Mellier’s decision to step down after five years in the position. Cleaver’s appointment takes effect in July.
Cleaver, a lawyer by training, joined De Beers in 2005 as its general counsel. Subsequently, he served as De Beers’ executive director responsible for strategy and commercial relationships until 2015 and also served as co-acting CEO for a year prior to Mellier’s appointment in 2011. He was appointed group director of strategy and business development for Anglo American, De Beers’ parent company, in 2015. Duncan Wanblad, Anglo’s head of base metals, will replace Cleaver there.
Rumors of Mellier’s departure have been swirling for some time, both in the diamond industry and the mining sector at large. Late last year, industry gadfly Martin Rapaport publicly called for Mellier’s resignation in the wake of a 60% plunge in rough diamond prices.
Mellier--whose background prior to De Beers was as an executive in the transportation industry for such top names as Ford, Renault, and Volvo--was seen as an odd choice to lead the world’s largest (by value) diamond producer. An outsider in a notoriously insular industry, his 2011 appointment was viewed by some as a necessary step to bring transparency and a fresh perspective to the secretive diamond industry, and by others as a handicap in a world where relationships and deep market knowledge are essential to success.
Philippe Mellier
In April, media reports surfaced in Europe, positing Mellier as a frontrunner to take over Air France-KLM, and his strained relationship with Anglo American CEO Mark Cutifani was well known. A possible breaking point may have come when Anglo opted not to move its London operations into the historic Charterhouse Street offices that De Beers owns fully, but instead told the miner to sell those offices and share rented space with the rest of Anglo.
But Mellier did adeptly adapt De Beers to changing market conditions. According to one industry analyst, diamantaires were growing increasingly annoyed with the company’s methods of doing business, and the changes Mellier implemented were both timely and necessary, and a good legacy to his credit.
Cutifani, who also serves as chairman of De Beers, said: “Together with our partners in De Beers, we congratulate Bruce Cleaver on his appointment as CEO of De Beers Group following Philippe Mellier's decision to step down. Bruce's leadership of De Beers' strategy and its commercial and government relationships working alongside Philippe and over much of the last decade, combined with his time working with us to shape the new Anglo American strategy, provide strong continuity at an important stage in the diamond market's recovery. The structural dynamics of the diamond market continue to improve, led by the strength of consumer demand for diamond jewelry. With the proven management team in place, De Beers is well positioned to maximize value for all its stakeholders across the diamond value chain.”
Cleaver commented: “I am honored to be asked to lead one of the world’s great companies. Diamonds are as relevant to today’s consumers, all over the world, as they were to their parents and their parents before them. Diamonds have also made positive contributions to a host of countries that have used their revenues wisely, to communities and to all who have been touched by their mystique and the practical benefits of responsible mining and ethical sourcing. As the world continues to evolve ever more rapidly, it is our task to ensure that we remain as relevant as we are today and to grow our position in the luxury world.
“I look forward to working closely with all of our key customers, governments and other stakeholders to ensure that De Beers continues to lead the industry into a new and exciting phase. My sincere thanks to Philippe—his innovative thinking, constant questioning of the status quo and desire to advance the agenda has benefited all of us, and I have thoroughly enjoyed working with him.”
Cutifani added, “Philippe has led De Beers with great agility, transforming the company’s strategic and operational mindset with a strong customer focus to ensure that consumer desire for diamond jewelry is at the very heart of decision making across the diamond pipeline. He has navigated through structural change and considerable market volatility over the last five years, while cementing De Beers’ unquestioned leadership position. We wish him all the very best in his future endeavours.”
Mellier added, “I have been privileged to lead such an iconic company as De Beers with its rich history, great people and culture, and truly unique product offering. As I committed at the outset in 2011, I envisaged a five-year plan with the team and the board to reset De Beers on its current path. Having steered through some of the diamond industry’s toughest times and with the market showing signs of recovery, now is the right time for me to pass the baton to the next generation. I have worked closely with Bruce Cleaver throughout and I have no doubt about his abilities and experience to lead De Beers on the next stage of its journey as the world’s leading diamond company.”