- Decrease primarily due to planned reduction in South Africa as Venetia transitions to underground operations, partly offset by higher production from Botswana
GAZETTE REPORTER
Rough diamond production at the world’s leading diamond company, De Beers, decreased by 3 percent to 7.9 million carats, in the fourth quarter (Q4) of 2023 that ended 31 December 2022.
According to a recent report released by De Beers’ parent company, Anglo American, this decrease is primarily due to a planned reduction in South Africa as Venetia transitions to underground operations, partly offset by higher production from Botswana.
The report highlights contrasting performances across different regions. Anglo American says in Botswana, production increased by 6 percent to 6.1 million carats, principally driven by increased plant throughput at Orapa due to planned lower maintenance.
Lower grades in Namibia
“Production in Namibia decreased by 4 percent to 0.6 million carats, due to marginally lower grades at the land operations,” the report reads.
In South Africa, the Anglo American report shows that production decreased by 54 percent to 0.4 million carats due to the planned end of Venetia’s open pit operations in December 2022.
The report reads that Venetia will continue to process lower grade surface stockpiles as the underground operations ramp-up production over the next few years.
“Production in Canada decreased by 3 percent to 0.8 million carats, due to planned treatment of lower grade ore,” the report says.
Full flexibility
It indicates that De Beers offered full flexibility for rough diamond allocations in Sights 9 and 10, as sightholders continued to take a cautious approach to their purchasing during the quarter as a result of the prevailing market conditions and extended cutting and polishing factory closures in India.
“This followed a two-month voluntary import moratorium on rough diamonds into India during the period,” says the report.
“Consequently, rough diamond sales totalled 2.7 million carats (2.7 million carats on a consolidated basis) from two Sights, compared with 7.3 million carats (6.6 million carats on a consolidated basis) from two Sights in Q4 2022, and 7.4 million carats (6.7 million carats on a consolidated basis) from three Sights in Q3 2023.
Lower value rough
“The full year consolidated average realised price decreased by 25 percent to $147/ct (2022: $197/ct), reflecting a larger proportion of lower value rough diamonds being sold, as well as a 6 percent decrease in the average rough price index.”
Offering production 2024 guidance, the report shows guidance for 2024 is unchanged at 29-32 million carats (100 percent basis). However, it says De Beers will assess options to reduce production in response to prevailing market conditions.
Meanwhile, De Beers Group prides itself as the world’s leading diamond company, with expertise in diamond exploration, mining, grading, marketing and retail.
20,000 people
Together with its joint venture partners, the Group employs more than 20,000 people across the global diamond pipeline, with many of these people in the source countries of Botswana, Canada, Namibia and South Africa.
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