De Beers’ output down 4% while demand remains strong七月 22, 2022
BY: TASNEEM BULBULIA
"Diamond miner De Beers’ rough diamond production decreased by 4% to 7.9-million carats in the second quarter of the year, primarily owing to the treatment of lower-grade ore at operations in both Canada and Botswana.
De Beers’ South African production decreased by 4% to 1.2-million carats owing to lower tonnes treated.
In Botswana, production decreased by 4% to 5.5-million carats owing to lower-grade ore being processed at both Jwaneng and Orapa.
Namibian production increased by 67% to 600 000 ct, primarily driven by continued strong performance from the Benguela Gem since the early delivery of the new diamond recovery vessel in the first quarter.
Production in Canada decreased by 28% to 600 000 ct owing to the treatment of lower-grade ore, unscheduled plant maintenance and the impact of Covid-19-related absenteeism.
De Beers says strong demand for rough diamonds continued into the second quarter, with rough diamond sales totalling 9.4-million carats from three sight sales, compared with 7.3-million carats from two sight sales in the comparative period last year, and 7.9-million carats from two sight sales in the first quarter, both of which benefited from strong demand recovery following the impact of Covid-19 in 2020.
“While consumer demand for natural diamonds continued to be robust in the first half, a deterioration of global macroeconomic conditions and reduced consumer spending could impact demand for diamond jewellery.
“Despite this, the combination of ongoing sanctions against Russia, decisions from a number of US-based jewellery businesses to apply their own restrictions on purchases of Russian diamonds, and continued development of provenance initiatives, such as the Tracr blockchain platform, has the potential to underpin continued robust demand for De Beers’ rough diamonds,” the company points out.
The first half consolidated average realised price increased by 58% to $213/ct from the previous year, driven by a larger proportion of higher-value rough diamonds sold, as well as higher prices.
The rough price index increased by 28% compared with the previous year, reflecting positive consumer demand for diamond jewellery, as well as tightness in inventories across the diamond value chain.
Production guidance for the year has been increased to 32-million to 34-million carats, from 30-million to 33-million carats, subject to trading conditions and the extent of further Covid-19-related disruptions."
SOURCE: Mining Weekly