Rough diamond production up as demand surges

Kabelo Adamson
PRODUCTION UP: Diamonds

De Beers has seen its rough diamond production increase by 28 percent to 9.2 million on the backdrop of a surge in demand.

Information availed this week by De Beers parent company, Anglo American indicates that during the third quarter of this year, the increase reflects planned higher production to meet stronger demand for rough diamonds.

The bulk of De Beers’ rough diamond production during the period came from Debswana, a joint venture between De Beers and the Botswana government.

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In Botswana mines, a total of 6.4 million carats of rough diamonds were extracted, which was an increase of 33 percent from the same period last year when 4.8 million carats were mined.

The increase in rough diamond production in Botswana is said to have been primarily driven by the planned treatment of higher ore at Jwaneng, which was partly offset by lower production at Orapa due to the planned closure of Plant 1.

The remaining carats were recovered from other mines in South Africa, Canada, and Namibia.

The diamond company says demand for rough diamonds continued to be robust, with positive midstream sentiment reflecting strong demand for polished diamond jewelry, particularly in the key markets of the US and China.

Rough diamond sales totaled 7.8 million carats from two Sights, compared to 6.6 million carats from three Sights in the third quarter of 2020, and 7.3 million carats from two Sights in the second quarter of 2021.

De Beers has tightened its production guidance to minus 32 million carats which were previously 32 -33 million carats.

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This is due to continuing operational challenges, subject to the extent of any further COVID-19 related disruptions.

“We are broadly on track to deliver our full-year production guidance across all products while taking the opportunity to tighten up the guidance for diamonds, copper, and iron ore within our current range as we approach the end of the year,” said Anglo American Chief Executive, Mark Cutifani.

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