De Beers has revised its 2020 production guidance to 25-27 million carats from the previous target of between 32 and 34 million carats in response to the impact of COVID-19 on mining operations, wholesale trading activity and consumer traffic in key consumer markets.
The group produced 30.8 million carats in 2019, down 13% from 35.3 million carats in 2018.
Meanwhile, De Beers said that it produced about 7.8 million carats during the first quarter of the year, which was in line with prior year.
Image credit: De Beers
There was a limited impact from COVID-19 measures as they were only introduced at the end of the quarter in producer countries.
However, Botswana production decreased 5% to 5.6 million carats, driven by a 7% decrease at Orapa due to challenges related to commissioning of new plant infrastructure and maintenance, while production at Jwaneng reduced by 4% due to planned lower grade.
Namibian production jumped 6% to 500 000 carats due to planned higher grade at the marine operations.
De Beers said production in South Africa leaped 97% to 800 000 carats as mining of the final ore from the open pit commenced prior to transition to underground.
Production in Canada slowed by 19% to 800 000 carats, mainly due to the closure of Victor, which reached the end of its life in the second quarter of 2019.
De Beers’ rough diamond sales totalled 8.9 million carats from two sales cycles, an increase compared to 7.5 million carats sold the prior year.
Sales volumes increased year-on-year despite adverse demand impacts in the first quarter from COVID-19, with customers given the option to defer some allocations in the second sales cycle, offset by a shift in demand towards lower value goods.
De Beers has provided its customers with flexibility to defer all their allocations from sight 3 until later in the year.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
