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Articles from DIAMONDS BY CUT - BRILLIANT (ROUND) (285 Articles)

De Beers' diamond production and sales volumes dropped in the second quarter
De Beers' diamond production and sales volumes dropped in the second quarter

De Beers’ production and sales decline

New figures indicate a fall in diamond production across all of De Beers Group’s mining operations, with sales volumes also taking a hit.

Overall, De Beers’ diamond production decreased 6 per cent to 8 million carats in the second quarter of 2015, compared to the 8.5 million carats recorded in 2014.

A first half-year comparison also showed a 3 per cent decline from 16 million carats in 2014 to 15.6 million in 2015.

According to a statement released by De Beers’ majority shareholder, Anglo American, the drop in production was mostly the result of lower grades and reduced plant availability at the Orapa mine, located in Botswana, South Africa.

“In addition, operational flexibility at the Venetia and Jwaneng tailings treatment plants was utilised to reduce production marginally in response to softer trading conditions,” the statement added.

From a regional perspective, De Beers Canada reported an 11 per cent decrease to 502,000 carats, while the company’s operations in South Africa showed a 5 per cent drop in production to 1.1 million carats. Production at the mines in Namibia fell 15 per cent from the previous corresponding period, producing a total of 431,000 carats for the second quarter of 2015.

Sales drop

De Beers’ total rough diamond sales volumes also reduced in the first half of 2015, decreasing 26 per cent to 14 million carats compared to 2014. Consolidated sales volumes additionally fell 27 per cent to 13.3 million carats.

“This [result] reflected relatively low levels of re-stocking by the midstream [market] in 2015, in contrast with particularly strong sales conditions in the first half of 2014,” the statement read.

Despite the fact that the global diamond producer’s rough price index was 4 per cent lower for the first half of 2015 compared to the previous year, it was noted that a 7 per cent higher average realised selling price of US$206 (AU$278) per carat was achieved.

Anglo American holds an 85 per cent share in De Beers, with the remaining 15 per cent held by the government of the Republic of Botswana.

More reading
De Beers production up; India moves to cut middlemen
De Beers profit climbs more than 30 per cent

Peter W Beck

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