Connect with us

Hi, what are you looking for?

Business

Diamond dilemma

Diamond dilemma
ON THE ROCKS: Diamond

Industry under pressure as Covid hits India

Signs that the diamond industry was slowly starting to sparkle again have been dented by the outbreak of the second wave of Covid-19 in India.

Having started the year on a positive note, the devastating impact of Coronavirus in India, a key market for diamonds, threatens to plunge the industry into disarray once again.

Since the middle of April, India has been recording around 300, 000 new cases every day, with the daily death rate regularly exceeding 3, 000.

Meanwhile, the recent figures availed by Anglo American, De Beers parent company, show rough diamond sales value amounted to US$380 million (P3.8 billion) for the 4th cycle of the year.

This is a decrease from US$450 million registered during the third cycle of sales. It is, however, a vast improvement on the US$56 million recorded in the fourth cycle last year when most countries went on lockdown.

Although De Beers group Chief Executive Officer (CEO), Bruce Cleaver says they continue to see robust demand for jewelry in the key U.S and China markets, he notes the outbreak in India has hurt the market ‘badly’.

Advertisement. Scroll to continue reading.
Diamond dilemma

DE BEERS GROUP CEO: Clever

“The scale of the second wave of Covid-19 in India, where the majority of the world’s diamonds are cut and polished, has led to reduced midstream capacity and subsequently lower rough diamond demand, during what is already a seasonally slower time of year for midstream purchases,” said Cleaver.

In response to the circumstances brought about by the pandemic, particularly the global restrictions on the movement of people and products, De Beers had continued to implement a more flexible approach to rough diamond sales during the fourth sales cycle of 2021. This included extending the sighting event, where prospective buyers get to view the diamonds, beyond their normal week-long duration.

Due to the pandemic’s far-reaching impact, last year De Beers saw its rough diamond production go down by 14 percent to 6.7 million carats as measures were put in place to respond to the lower demand for rough diamonds. The drop in demand is said to have been caused by the Covid-19 pandemic as well as operational challenges at Orapa that led to lower than expected production.

De Beers has previously revised its production guidance to 32-34 million carats for 2021, from 33-35 million carats which subject to trading conditions, due to ongoing operational challenges and lower expected production from the final cut at Venetia, De Beers’ Canadian mine.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement
Advertisement
Advertisement

You May Also Like

News

*Yul Moncho demands P250k in damages

News

Jealous man shoots rival, lands lover in hospital A shooting incident at Moletamane Primary school that left a farmer dead and a teacher fighting...

News

• Wildlife demands to see captured live python • Old woman, pastor, charged P5,000 each A Tobane old woman whose yard was haunted by...

Entertainment

Shaya has been following former President Ian Khama’s expenditure and has realised that he never uses his own money. The recent event that comes...

News

‘I take good care of your daughter and provide for my children. Where will I get a cow to pay you when I am...

Entertainment

Congratulations are in order to Member of Parliament for Selibe Phikwe West, Dithapelo Keorapetse and his wife for a second baby. Shaya spotted the...

News

Father suspected of poisoning son to avoid child maintenance The estranged father of a toddler who died after eating yoghurt about four months ago...

News

“I was arrested on the way to the police station,” Kangootui A 37-year-old man of Toteng village was on Friday last week acquitted and...

Entertainment

Online Comedy Show, The Jonny Pula and Triccs show launched its season 2 last week. The show features online comedians and will air 30minutes...

Entertainment

Shaya joined Batswana this week as we followed the LEGABIBO appeal Live on the Voice Newspaper Online Platform. Whilst I listened carefully to the...

News

The organisational restructuring at Water Utilities Corporation (WUC) has cost 450 employees their jobs, it has emerged. Appearing before the Committee on Statutory Bodies...

Entertainment

Famously known for posting funny, blurry pictures and short video skits on his Facebook page, local upcoming comedian Raz Doko, 22, has established a...

Entertainment

In her “Tribute to the world on Covid-19” single Oosi Lemo puts her soul in God’s hands and presents the human race at his...

Entertainment

Batswana ga ba ile batho ba ba matanyola, Akere ba bitswa jalo ,mme legale ha se gore Batswana ba dumalana le matanyola-Advocate Sydney Pilane

News

A mother who trusted her brother to babysit her five-year-old daughter got the shock of her life when she got back to reports of...

Entertainment

Conquering football In football circles, he’s one of the most enterprising and shrewd administrators. From the moment he was elected Chairman of Zebras Supporters...

Advertisement

Copyright © TheVoiceBW. (Since1993) made with ❤️ in Botswana.