Orapa Diamond Mine Image credit: De Beers
(iol.co.za) - Anglo American Plc will mine significantly fewer diamonds this year than it previously planned to, as the biggest supplier of the gems contends with a complete shutdown of the global supply chain.
The coronavirus pandemic has crippled the diamond trade. India’s cutting industry, which handles almost all of the world’s stones, has come to a halt. At the same time, diamond purchases in the key U.S. market have tumbled as retailers closed stores. Botswana, where Anglo’s De Beers unit sells its stones, has also blocked travelers from the key diamond-buying centers.
The outbreak has come at a terrible time for an industry already reeling from a disastrous 2019. Profits collapsed last year after a glut of rough and polished stones destroyed margins for the industry’s crucial middlemen who cut, polish and trade them.
De Beers cut its production forecast by 7 million carats for this year, to between 25 million and 27 million carats.
