South Africa’s State Diamond Trader (SDT) is considering extending sourcing of rough diamonds beyond the country’s jurisdiction to counter the negative impact of the global economic downturn, according to a senior official.
Board chairperson Maletlatsa Monica Ledingwane said in a statement accompanying the company’s financial report for the 2022-2023 year ending March 31, 2023 that the economic challenges coupled with high inflation rates created an unfavourable operating environment for SDT.
SDT buys up to 10% of the run-of-mine production from all producers in South Africa.
Its major suppliers of rough diamonds are De Beers and Petra Diamonds.
SDT purchased 492,118 carats in the 2022–2023 financial year and sold 488,718 carats at a value of R1.3 billion ($68.3 million), a drop of 8% from R1.4 billion ($73. 6 million) a year earlier.
“The current build-up in polished and rough diamonds could lead to lower revenue and profit margins for SDT,” she said.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
