Steady Demand of De Beers Rough Diamonds Persists
- Ninth sales cycle of 2020 amounted to $450 million
- But De Beers’ worldwide rough production decreased by 4%
- Botswana production down by 15%
Constant demand for rough diamonds at leading diamond mining company De Beers continued in the ninth sales cycle of the year, the company’s Chief Executive Officer (CEO), Bruce Cleaver, said in an Anglo American media statement released recently.
The steady demand for rough diamonds reflects stable consumer demand for diamond jewellery at the retail level in the United States and China and expectations for reasonable demand to continue throughout the December holiday season. “However, the resurgence of Covid-19 infections in several consumer markets presents ongoing risks,” Cleaver said.
The De Beers Cycle 9 2020 provisional sales represents sales as at 16 November 2020. According to the statement, the value of rough diamond sales (global sight holder sales and auctions) for De Beers’ ninth sales cycle of 2020 amounted to $450 million.
“Owing to the restrictions on the movement of people and products in various jurisdictions around the globe, De Beers Group has continued to implement a more flexible approach to rough diamond sales during the ninth sales cycle of 2020, with the sight event extended beyond its normal week-long duration,” reads the statement.
“As a result, the provisional rough diamond sales figure quoted for Cycle 9 represents the expected sales value for the period 2 November to 16 November and remains subject to adjustment based on final completed sales.”
Meanwhile, Anglo American last month announced that rough diamond production at De Beers declined by 4 percent to 7.2 million carats in the third quarter (Q3), which ended 30 September 2020. “Botswana’s production decreased by 15 percent to 4.8 million carats due to the planned treatment of lower grade material at both Jwaneng and Orapa mines, with production targeted at levels to meet lower demand,” Anglo American said.
De Beers Group is a multinational company that specialises in diamond exploration, diamond mining, diamond retail, diamond trading and industrial manufacturing. The company is active in open-pit and large-scale alluvial, coastal and deep mining. It operates in 35 countries, including Botswana from where it generates 75 percent of its earnings.
De Beers’ major shareholder is Anglo American, which owns 85 percent of the company. The remaining 15 percent is owned by the Government of Botswana. De Beers Group and its partners produce around one third of the world’s rough diamonds by value. De Beers sells rough diamonds to the global diamantaires through its diamond trading and auctions businesses. It sells polished diamonds and diamond jewellery via its Forevermark and De Beers Jewellers businesses.