De Beers’ rough diamond production decreased by 15% to 6.4 million carats in the second quarter of the year, according to Anglo American.
It said production decreased in Botswana by 19% to 4.7 million carats, driven by intentional lower production from short-term changes in plant feed mix at Jwaneng to process existing surface stockpiles. Production at Orapa was broadly flat.
Additionally, production in Namibia decreased by 8% to 600,000 carats as a result of planned vessel maintenance at Debmarine Namibia, partially offsetting the planned mining of higher-grade areas at Namdeb.
However, production in South Africa rose 8% to 500,000 carats, reflecting the benefit of processing increased volumes of higher-grade underground ore as the Venetia mine transitions underground.
It said production in Canada was broadly unchanged at 700,000 carats.
Meanwhile, Anglo said demand for rough diamonds recovered slightly at the beginning of 2024 following the cessation of the voluntary moratorium on rough diamond imports into India in late 2023 and improved demand for diamond jewellery in the United States year-end retail selling season. “However, with midstream polished inventories remaining higher than normal and continued cautious restocking from retailers, demand for rough diamonds deteriorated in the second quarter of the year. Market conditions are expected to reflect a protracted recovery in demand,” it said.
De Beers’ rough diamond sales in the second quarter totalled 7.8 million carats, compared with 7.6 million carats from two sights in the second quarter of 2023 and 4.9 million carats from two sights in the first quarter of 2024.
Anglo said the first half of 2024 consolidated average realised price remained broadly flat at $164 per carat compared to $163 per carat, a year earlier, reflecting a larger proportion of higher value rough diamonds being sold, offset by a 20% decrease in the average rough price index as compared to the same period in 2023.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
