De Beers' diamond production dropped by 7% to 7.2 million carats in the first quarter of 2021, mainly due to operational challenges, including excessive rainfall in southern Africa and a COVID-19-related shut down in Canada, as well as planned maintenance in Namibia.
Anglo American, which has a controlling stake in De Beers said that diamond output in Botswana, eased by 12% to 5 million carats in the quarter as a result of a 24% reduction at Orapa following a lower grade feed to the plant in response to heavy rainfall and operational issues, including continued power supply disruptions.
In Namibia production fell by 34% to 300 000 carats, mainly due to the planned maintenance of the Mafuta vessel while another vessel remained demobilised as part of the response to lower demand implemented in the third quarter of 2020.
Production in Canada also decreased by 16% to 700 000 carats as a result of a Covid-19-related suspension of operations in February.
However, production rose by 55% to 1.2 million carats in South Africa due to the planned treatment of higher-grade ore from the final cut of the open pit.
Anglo said that demand for rough diamonds in the first quarter recovered to pre-COVID-19 levels reflecting the replenishment of the depleted midstream, and renewed confidence by the midstream in response to the return of consumer demand for diamond jewellery in the US and China in the second half of 2020.
De Beers' rough diamond sales reached 13.5 million carats from three rough sales in the first quarter of 2021, compared with 8.9 million carats from two rough sales in the first quarter of 2020 and 6.9 million carats from two auctions in the fourth quarter of 2020.
Anglo said De Beers' production guidance remains unchanged at 32-34 million carats, subject to trading conditions and the extent of further COVID-19-related disruption.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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