De Beers rough diamond production falls 4%

ByDavid L. Juliano

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The De Beers Group has noted that rough diamond production fell by 4% to 7.9 million carats in the second quarter of 2022 (Q2), in spite of a “strong” desire for tough diamonds continuing in the quarter.

In Botswana, output lowered by 4% to 5.5 million carats due to decreased grade ore currently being processed at equally Jwaneng and Orapa, and output in Canada reduced by 28% to .6 million carats amid unscheduled plant maintenance and the effects of Covid-19 similar absenteeism.

In addition, South Africa production reduced by 4% to 1.2 million carats because of to reduced tonnes treated.

Having said that, Namibia generation grew by 67% to .6 million carats, amid ongoing “strong” general performance from the Benguela Gem since the early shipping of the new diamond restoration vessel in Q1 2022.

Meanwhile, De Beers reported a “strong” need for rough diamonds continued into the Q2, with rough diamond profits totalling 9.4 million carats from a few Sights. This compares with 7.3 million carats from two Sights in Q2 2021 and 7.9 million carats from two Sights in Q1 2022, each of which reportedly noticed “strong” need restoration adhering to Covid-19 in 2020.

The company included that whilst shopper need for all-natural diamonds ongoing to be sturdy in the first half, a deterioration of world-wide macroeconomic situations and diminished buyer spending could affect need for diamond jewellery.

In spite of this, the combination of ongoing sanctions in opposition to Russia, choices from a number of US-centered jewellery enterprises to apply their personal limits on buys of Russian diamonds, and ongoing improvement of provenance initiatives “has the prospective to underpin ongoing robust demand” for De Beers’ rough diamonds.

In addition, the H1 2022 consolidated average realised rate improved by 58% to $213/ct (£178.48/ct), up yr-on-12 months from $135/ct (£113.12/ct), owing to a larger proportion of greater worth tough diamonds bought, as properly as larger prices.

The rough selling price index also increased by 28% as opposed to H1 2021, reflecting “positive” customer demand for diamond jewellery as well as tightness in inventories throughout the diamond benefit chain.

Wanting ahead, generation direction for 2022 is greater to 32–34 million carats (beforehand 30-33 million carats), issue to trading problems and the extent of even more Covid-19 associated disruptions.

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