CHAMWE KAIRA
Production in Namibia decreased by 14% to 500 000 carats, reflecting intentional action to lower production at Debmarine Namibia, partially offset by planned higher grade mining and better recoveries at Namdeb, the Anglo American production report for the third quarter ended 30 September revealed.
Anglo American owns De Beers, which in turn is a 50-50 partner with the government in Debmarine Namibia, Namdeb Holdings and Namibia Trading Diamond Company (NDTC).
De Beers said overall rough diamond production in Namibia, Botswana, South Africa and Canada decreased by 25% to 5.6 million carats, reflecting a production response to the prolonged period of lower demand, higher than normal levels of inventory in the midstream and a continued focus on managing working capital.
In Botswana, production decreased by 32% to four million carats as actions to lower production at Jwaneng were delivered. In South Africa, production increased by 41% to 0.5 million carats as Venetia underground ramps up. Production in Canada decreased by 11% to 0.6 million carats due to the planned treatment of lower-grade ore.
The company said trading conditions during the quarter continued to be challenging in light of higher than normal midstream inventory levels and the prolonged period of depressed consumer demand in China.
Consolidated average realised price increased by 4% to US$160 per carat, reflecting a larger proportion of higher-value rough diamonds being sold, partially offset by an 18% decrease in the average rough price index.
“De Beers Jewellers delivered consistent performance with growth in design-led pieces, while bridal and solitaire demand remained challenged by macro-economic headwinds and slower Chinese recovery. Forevermark’s global operations ramped down, consistent with the strategy to focus the brand on India.
New natural diamond marketing collaborations were established with world-leading diamond jewellery retailers: Signet in the US and Chow Tai Fook in China, with further opportunities planned. The collaborations focus on driving long term desirability for natural diamonds in two of the world’s leading consumer countries for natural diamonds. The collaborations will also benefit from promotional messages being amplified through the wide reach of these leading retail businesses,” the company said.
Production guidance for 2024 is unchanged at 23–26 million carats; however, as the midstream continues to hold higher than normal levels of inventory and the expectation of a recovery remains protracted, De Beers is actively assessing options with our partners to reduce production going forward, the company said.
The report said that, on a consolidated basis, sales volumes in the third quarter were 1.7 million carats, the third quarter of 2023 was 6.7 million carats, and the second quarter of 2024 was 7.3 million carats.
Consolidated sales volumes, according to the company, do not include the 50% proportionate share of sales to entities outside De Beers Group from the Diamond Trading Company Botswana and the Namibia Diamond Trading Company.
