Lucara names two largest diamonds found in 2024

2,492 CARAT DIAMOND

Lucara Diamond has unveiled the names chosen of the two largest diamonds recovered this year at its prolific Karowe mine in Botswana.

The 2,488 carat diamond found in August has been named Motswedi, meaning “water spring” or “the flow of underground water that surfaces to bring life and vitality” in the local Setswana language.

The 1,094 carat diamond recovered in September is now known as Seriti, which translates to “aura” or “presence” in Setswana. The name carries deep cultural significance, reflecting identity and legacy.

Lucara said the two diamonds were not just geological phenomena, but a testament to the “incredible potential” of Karowe and the company’s innovative approach to diamond recovery.

“Each stone tells a story millions of years in the making, and we are humbled to be the custodians of these remarkable gems as they prepare to enter the global market,” president and chief executive officer, William Lamb, said in the statement.

To honor the community’s involvement, Lucara awarded the winner of the Motswedi naming competition 100,000 Pula (about $7,325), while the winner for Seriti received 50,000 Pula ($3,660). Both winners will also be invited to tour the Karowe mine.

Lucara said it was considering sale options for both diamonds.

Motswedi and Seriti are two of six diamonds weighing more than 1,000 carat that Lucara has recovered at its Karowe mine since operations began. These include the 1,758-carat Sewelô in 2019, the 1,109-carat Lesedi La Rona in 2015, and the 813-carat Constellation, also in 2015.

Karowe is also credited for having yielded Botswana’s largest fancy pink diamond to date, the Boitumelo.

The mine remains one of the world’s highest-margin diamond mines, producing an average of 300,000 high-value carats each year.

Source: Mining.com

Botswana Diamonds uncovers new kimberlite targets using AI

Botswana Diamonds has analysed and evaluated nearly 400 000 km of airborne geophysical and other exploration data using AI techniques and powerful computing, which would otherwise have been too big for timely analysis by humans.

In particular, the company has identified seven significant kimberlite targets on existing licences that have not been reported before.

The AI programme has also revealed compelling polymetallic targets in areas that are currently unlicensed.

Work is ongoing on these new areas of interest which now focuses on four main deposit types and 11 subtypes. These deposit types include elements such as gold, copper, silver, nickel, zinc and platinum group metals.

Botswana Diamonds used UK-headquartered Planetary AI’s ‘Xplore’ mineral prospectivity platform to perform the detailed analysis.

Xplore Platform is software that enables targeting of any element based on a plethora of geological and topographic information.

Botswana Diamonds chairperson John Teeling comments that these discoveries, in a few short months, are a major step forward in mineral exploration. One anomaly is especially intriguing to the company and the AI programme has reinforced the company’s belief that more diamond mines will be discovered in Botswana.

The company currently operates three diamond mines in Botswana and it also holds assets in South Africa.

Source: DCLA

Botswana holds main interest rate as diamond slump saps economy

Botswana’s central bank left its main lending rate unchanged on Thursday, saying the economy was expected to operate below capacity and not generate demand-driven inflationary pressures because of a slump in the global diamond market.

The Bank of Botswana held its Monetary Policy Rate at 1.90% for the second policy meeting in a row. The rate is based on a seven-day instrument.

“The economy will contract this year primarily due to the downturn in the global diamond market and moderately recover next year,” central bank Governor Cornelius Dekop told a news conference.

The southern African country’s economy is largely dependent on the export of diamonds, and declining earnings from the precious stone have limited government spending.

The central bank also lowered its primary reserve requirement to 0% from 2.5% due to significantly reduced liquidity in the banking system.

Dekop said inflation was expected to average 2.9% in 2024 and 3.3% in 2025, compared with forecasts of 2.8% and 3.1% given at the bank’s previous monetary policy meeting in November.

The Bank of Botswana prefers inflation between 3% and 6% over the medium term. Annual inflation stood at 1.6% in October.

Source: Mining.com

De Beers Cuts Rough Prices

De Beers has reportedly lowered rough prices at its current sight in Gaborone, by as much as 15 per cent in some cases.

It generally uses price cuts only as a last resort, and prefers to offer sight holders the right to refuse or sell back part of their allocation.

Insiders have expressed surprise, and in some cases disappointment at the move, with the holiday buying season now here, and polished prices finally showing signs of recovery.

According to the Bloomberg news website, De Beers “cut prices by 10 per cent to 15 per cent for most of the goods it sells”. It cited anonymous insiders.

De Beers has until now maintained its prices in spite of weak demand, and despite the fact that they are often significantly higher than other sellers.

De Beers no longer publishes Sight revenues, but it is reckoned to have sold no more than $130m at its November Sight (average per 2023 Sight was over $360m).

Last week the company confirmed it would be cutting the number of Sightholders – there are currently 69 – as of 2026 in a move designed to build partnerships that “create value”.

The future of De Beers remains uncertain, with parent company Anglo American planning to sell it off, and Anglo itself again the focus of intense speculation.

Rival miner BHP, which bid unsuccessfully for Anglo six months ago, is now allowed to make a renewed approach.

Source: DCLA

Botswana to become certifier in G7 Russian diamond ban

Major African diamond producer Botswana will join Antwerp as an origin certifier of rough diamonds for export to the G7 which banned imports of Russian stones from the start of this year, a joint statement said on Wednesday.

The addition of Botswana looks set to salvage implementation of the ban. The initial system would have seen all diamonds go through Europe’s diamond hub in Antwerp for verification, backed by a new tracing system.

African diamond producers Angola, Botswana and Namibia, as well as diamond miner De Beers, had said the mechanism was unfair and would hurt their economies.

“Botswana and the G7 diamond technical team are now crafting a roadmap to address any identified gaps, aiming to have the export certification node fully operational in Botswana as soon as possible next year,” the statement said.

The Group of Seven (G7) nations ban on direct Russian diamond imports took effect on Jan. 1, followed by a ban on Russia-origin diamonds via third countries from early March.

The tracing system was meant to be up and running by Sept. 1, but the EU delayed the implementation to March 2025.

Source: Mining.com

Diamond miners face turning point amid weak prices

The diamond industry, once a symbol of timeless stability, finds itself in a state of flux as prices for natural diamonds hit multiyear lows, driven by a mix of evolving consumer preferences, geopolitical upheaval, and the meteoric rise of lab-grown diamonds (LGDs), a new study shows. 

The reversal of fortunes that followed a surge during the covid-19 pandemic has left industry stakeholders grappling with how to adapt to ensure long-term sustainability, consultancy McKinsey & Company says in its latest report.

During the pandemic, diamond prices rose unexpectedly. Supply chain disruptions and the delay of weddings initially dampened sales, but many consumers stuck at home turned to diamonds as a form of self-care. This led to an unanticipated spike in demand and a sharp rise in prices. 

The post-pandemic market has painted a very different picture. As traditional engagement and marriage cycles return and supply chains normalize, prices have tumbled amid changing market dynamics, McKinsey & Co. says.

Ten years ago, young customers were an important segment of the overall demand for precious stones. Today, they seek more affordable and ethical alternatives.

With prices up to 80% lower than mined diamonds, LGDs have swiftly carved out a substantial share of the market, challenging traditional producers, the report shows.

Shifting customer values

Increased awareness of environmental, social, and governance (ESG) issues has also driven consumers to demand greater transparency and sustainability in diamond sourcing. Many buyers now insist on proof that their diamonds were mined under fair conditions with minimal environmental impact. This shift is particularly pronounced among younger generations, who are reshaping the jewelry market with their purchasing power and values.

Generation Z is leading a wave of change, favouring ethical and customizable products over traditional offerings. Younger buyers are more likely to seek out jewelry that aligns with their values, including fair labor practices and sustainability.

Many are turning to digital platforms for their purchases, with online fine jewelry sales growing significantly. In 2021, the average online purchase of diamond jewellery in the US was $2,204, compared to $2,994 in physical stores, signalling a growing comfort with digital transactions for high-value items.

The trend of self-purchasing is another key shift. Rather than waiting for significant life events like engagements or weddings, many consumers are now buying fine jewelry for themselves.

Industry actors Beers Group and Signet Jewelers launched in October their “Worth the Wait” campaign, aimed at reigniting demand for mined diamonds from youngsters, particularly amid “zillennials”, the microgeneration born between 1993 and 1998.

Geopolitical and gov’t factors

Adding to the industry’s challenges are geopolitical tensions. Sanctions targeting Russian diamonds have disrupted the global supply chain, particularly for larger stones. Russia’s Alrosa, once the world’s top diamond producer by output, has been heavily sanctioned by the US and the European Union, creating regional dislocations. 

McKinsey & Company warns that, by March 2025, these restrictions will tighten further, targeting stones of 0.5 carats and above, exacerbating supply chain issues.

The upheaval comes at a time when natural-diamond production is already constrained. Growth in supply is expected to remain sluggish, with an annual increase of just 1–2% through 2027, far below historical trends. Major mining companies are grappling with depleting resources, forcing them to shift from open-pit mining to more expensive underground operations. Companies like De Beers have invested billions to extend the life of their mines, but these efforts are costly and time-consuming.

Government intervention is also reshaping the industry. In diamond-rich regions, including Botswana, public authorities are taking larger stakes in mining operations, emphasizing the need for transparent and sustainable practices. 

Despite the challenges, there are opportunities for companies willing to adapt, the consultancy says. Producers can diversify their offerings by incorporating LGDs or recycled diamonds into their portfolios. They can also emphasize the unique, intrinsic value of natural diamonds, appealing to consumers who value rarity and tradition. Investments in sustainability and digital commerce are likely to pay dividends, as consumers increasingly demand ethical and seamless shopping experiences.

The consultants conclude that by embracing innovation and aligning with shifting consumer values, the industry may find a way to shine brightly once more.

Source: Mining.com

Lucara releases Q3 results, diamond mine shaft-sinking progress

Lucara Diamond Corp. said the long-term natural diamond price outlook remains resilient due to favourable supply and demand dynamics as a result of decreasing production volumes from major operating mines.

“However, the smaller size stones market remains soft as demand is impacted by a weak Asian market and the increasing uptake of laboratory grown diamonds,’’ Lucara said in a press release containing its results for the third quarter of 2024.

“Demand for stones larger than 10.8 carats remains robust, as reflected in the company’s sales in the plus 10.8 category,’’ the company said. It said the G7 sanctions on Russian diamonds over one carat, effective March, 2024, caused some trade delays with import times returning to normal during the quarter.

Lucara shares eased 8.7% or $0.04 to 42 cents. The shares trade in a 52-week range of 63 cents and 25 cents.

Lucara is a member of the Lundin Group of companies. Its currently operating open pit mine at Karowe in Botswana is a conventional load and haul operation. The mine is a producer of large, high-value type 2a diamonds. It is the only mine to have produced four diamonds in excess of 1,000 carats in size.

The open pit mine operations are expected to terminate mid-2025. However, the mine currently has over three years of surface stockpiled reserves, which will be consumed as required while the underground mine operations ramp up to commercial production.

During the third quarter, Lucara said significant progress was made in shaft sinking and lateral development connecting the production and ventilation shafts, with the critical path ventilation shaft being ahead of the July 2023 rebase schedule. At the end of the third quarter, the production shaft had reached a depth of 686 metres and the ventilation shaft a depth of 582 metres below surface. During Q3, the company invested $24.1 million into the Karowe Underground Project (UGP). The UGP is designed to access the highest value portion of the Karowe orebody and is expected to extend the life of the mine beyond 2040.

Highlights from the third quarter included the recovery of two exceptional diamonds larger than 1,000 carats, including the epic 2,488-carat diamond and the 1,094-carat diamond. The company said a total of 116,221 carats of diamonds were sold, generating revenue of $44.3 million in the third quarter.

A total of 104,390 carats were recovered in Q3, 2024, including 96,597 carats from direct ore feed from the pit and stockpiles, at a recovered grade of 13.4 carats per hundred tonnes and an additional 7,793 carats recovered from processing of historic recovery tailings.

On October 4, 2024, the company sold its interest in Clara Diamond Solutions Ltd. Partnership, Clara Diamond Solutions B.V., and Clara Diamond Solutions GP. Clara is a secure web-based digital marketplace designed to transact single diamonds between 1.0 and 10 carats, in higher colours and quality.

Source: DCLA

De Beers Finds High-Potential Kimberlite Sites in Angola

De Beers says it has identified eight new high-potential kimberlite sites in Angola, according to the Portuguese news agency Lusa.

It resumed explorations in the country in 2022, after a 10-year gap, and signed a memorandum of understanding (MoU) in February with Angola’s National Mineral Resource Agency, and its state-owned mining and trading companies, Endiama and Sodiam.

Aerial surveys by De Beers have so far identified eight sites in Lunda Sul, the northeastern province that is home to the huge Catoca mine. De Beers is now exploring six more areas, together with Endiama.

Angola has yet to explore 60 per cent of its diamond-rich territories. It opened its new Luele diamond mine last November, in a move that is forecast to increase annual production from 9.7m carats in 2023 to 14.6m carats this year.

Under the terms of the MoU there will be a review of kimberlite deposits to be explored and the transparency and traceability of diamond production will be promoted.

Source: IDEX

WFDB Call for Five-Year Marketing Campaign

The natural diamond industry needs coordinated and consistent marketing campaigns to counter declining demand, says Yoram Dvash, president of the World Federation of Diamond Bourses (WFDB).

In an open letter he calls on every member of the industry to help create a five-year plan, rather than relying on “short-term initiatives when the situation is particularly dire”.

He acknowledges that De Beers and the Natural Diamond Council are both spending millions of dollars on campaigns with leading retailers, but says it’s not enough.

“I am concerned that this is too little and too late,” he says. “To be successful, campaigns need to be coordinated and to be consistent throughout the year.”

He says there hasn’t been a major generic marketing campaign for natural diamonds for almost 20 years, when De Beers halted its “A Diamond is Forever” promotion.

“An entire generation of consumers has come of age without having been exposed to promotional campaigns with positive messages about natural diamonds,” he says in a letter to all the WFDB’s 29 member bourses.

Source: DCLA

De Beers Diamond Production Down by a Quarter

De Beers’ diamond production fell by 25 per cent during the quarter ending 30 September, and could fall even further.

Parent company Anglo American said output for Q3 was 5.6m carats, compared to 7.3m for the same period last year. It reduced production because of challenging market conditions and warned that it would “continue to assess the options to reduce production going forward”.

Anglo also provided an update on plans to sell or demerge its platinum and steelmaking coal assets as part of its “accelerated portfolio simplification” to focus on copper and other more profitable parts of its business, but make no mention of De Beers.

The UK-based company announced in May that it would be seeking a new owner for De Beers, following a bid by mining rival BHP to buy out Anglo.

Duncan Wanblad, chief executive of Anglo American, said: “As previously announced, we reduced rough diamond production from De Beers in response to market conditions.

“The diamond market remains challenging as the midstream continues to hold higher than normal levels of inventory and the expectation remains for a protracted recovery.”

So far this year De Beers has produced 18.9m carats, a 21 per cent drop on YTD 2023.

Source: IDEX

De Beers to Disclose Diamonds' Country of Origin

 De Beers to Disclose Diamonds’ Country of Origin

De Beers says it will, for the first time, disclose the country of its diamonds’ origins – Botswana, Namibia, South Africa, or Canada.

The move is designed to meet growing consumer demand for ethical sourcing and transparency, together with a desire to understand the journey of their particular diamond.

De Beers currently sells its rough output to sightholders in aggregated boxes marked only as DTC (Diamond Trading Company) without indicating the country in which they were mined.

It says it will initially provide data on the country of origin for all diamonds over 1.25 carats that are newly registered on its Tracr traceability platform, and over 1.0 carats from January 2025.

De Beers says advanced algorithmic matching enabled by artificial intelligence now allows it to digitally “disaggregate” diamonds to confirm their specific country of origin.

“For the first time in history, we have the technology to provide our customers with the provenance of their diamonds at scale,” said Al Cook, CEO of De Beers Group.

“We know that our clients care deeply about sustainability and want to understand the good their diamonds have done. Our ambition is to offer them the story of every De Beers-sourced diamond, tracing its journey and positive impact from its origin to its crafting.”

Source: DCLA

De Beers Group Managed Operations

The global supply of natural diamonds has already peaked, according to Moses Madondo, CEO of De Beers Group Managed Operations. Speaking at the Joburg Indaba, a major mining and resources conference in South Africa, he explained that production is on the decline, with several mine closures on the horizon and no significant new discoveries in sight.

Madondo highlighted that this limited supply could push diamond prices higher. “Since the turn of the century, we’ve only seen one major commercial discovery, the Luele mine in Angola, where we aim to start production by the 2030s. But on a broader scale, global diamond production is set to decline,” he said. This trend, while concerning from a supply perspective, offers the potential for price growth.

In the short term, Madondo expects production to dip, but he anticipates a recovery after 2025, driven by the Luele mine ramping up and South Africa’s Venetia mine shifting to underground operations. However, the looming closure of Canada’s Diavik mine in 2026 and the shutdown of several mines in Russia will further tighten supply.

Lucara recovers sixth diamond larger than 1,000 carats at Karowe mine in Botswana

Canada’s Lucara Diamond has dug up a 1,094 carat diamond from its Karowe mine in Botswana.

This is the sixth diamond weighing more than 1,000 carats to be recovered at the mine, and it comes only weeks after the recovery of a 2,492 carat diamond the second-largest diamond ever recovered.

“This remarkable stone bears striking similarities to the 692 carat diamond announced in August 2023, which was polished by HB Antwerp and yielded polished diamonds that sold for in excess of $13 million,” the company said in a press release.

“This newly recovered 1,094 carat stone will also be polished by HB Antwerp, as part of the ongoing partnership between the two companies,” Lucara said.

The Karowe mine has produced several large diamonds in recent years, including the 1,758-carat Sewelô in 2019, the 1,109 carat Lesedi La Rona in 2015, and the 813 carat Constellation, also in 2015. The mine is also credited for having yielded Botswana’s largest fancy pink diamond to date, the Boitumelo.

Botswana is the world’s largest producer of diamonds, and the trade has transformed it into a middle-income nation.

Karowe remains one of the highest margin diamond mines in the world, producing an average of 300,000 high value carats each year.

Shares of Lucara rose 8% by 11:40 a.m EDT in Toronto. The miner has a market capitalization of C$221 million ($162 million).

Source: mining.com

De Beers Supports New G7 Restrictions on Diamond Imports

Diamond giant De Beers is fully prepared for the expanded G7 restrictions on diamond imports from Russia, which took effect on September 1st. These restrictions now include diamonds weighing 0.5 carats and above, according to Rough&Polished.

De Beers stated that its customers will continue to provide proof of the origin of the diamonds they sell, even as the sanctions now cover rough diamonds weighing 0.5 carats and above, instead of 1 carat and above, as previously stipulated.

The company added that it welcomes the G7’s measures, which stand alongside the diamond industry and diamond-producing nations, aiming to trace the origin of diamonds. “De Beers fully supports the work being carried out by the G7 to prohibit the trade in Russian diamonds, and we are committed to working with the G7, the diamond industry, and our partner governments to ensure there is an effective system put in place,” said De Beers CEO Al Cook.

Diamond giant De Beers

Source: DCLA

 $300m Loan to Boost Okavango Diamond Purchases

Botswana’s state-owned diamond marketing company will increase its borrowing to fund additional rough purchases.

Finance Minister Peggy Serame said last Thursday (29 August) that the government had arranged a $300m credit facility, with the Standard Chartered Bank for the Okavango Diamond Company (ODC).

It hopes to capitalize on a long-awaited recovery the global diamond market.

At the moment ODC’s limited cash reserves mean it can only buy $70m of its allocation of diamonds produced by Debswana, the 50/50 joint venture between De Beers and the Botswana government.

ODC holds 10 auctions a year to sell its 25% allocation from Debswana. That share is set to double to 50 per cent over the next decade, as part of a deal agreed last year between Botswana and De Beers.

Last October ODC halted its rough sales amid weak demand.

Source: DCLA

Namibia bemoans popularity of lab-grown diamonds on global market

Namibia is one of Africa’s top five diamond exporters, right behind Angola, Botswana, and South Africa. In 2022, the country exported more than $940 million worth of diamonds.

The world’s demand for natural diamonds has bounced back from a slump during the COVID-19 pandemic, with Namibia’s largest marine dining company, Debmarine, reporting a sales increase of 83% in 2022 from the previous year.

Still, Debmarine CEO Willy Mertens is worried about competition from synthetic diamonds, sector of the business that could cost many Namibians their jobs.

Though trained jewelers can tell the difference between lab-grown and natural diamonds, there’s nothing obvious to distinguish lab-grown diamonds from natural ones.

The Modern Mining publication recently said that in 2022, lab-grown diamond jewelry surpassed 10% of the market of global jewelry sales for the first time. The publication said artificial diamond sales are forecast to continue growing at an annual double-digit percentage rate in coming years.

Namibia, where workers extracted 2.1 million carats in diamonds in 2022, is embarking on a campaign to tout natural diamonds as environmentally sound and holding greater value for the money.

“We’ve seen in the past couple of years that lab-grown diamonds, or synthetics as you call them, have sort of infiltrated the natural diamond market,” said Mertens. ” … people were first marketing them as real diamonds and we’ve done a lot of work around trying to differentiate them.”

One of the challenges of marketing Namibian natural diamonds is the environmental impact that diamonds have on the landscape.

Mertens said Debmarine invests a significant amount of its profits into environmental rehabilitation and restoration of landscapes and the seabed damaged by mining.

“The restoration of the seabed actually happens naturally as the waves move,” Mertens said. “So what we are doing is that we are monitoring that, and what we do is we mine out a specific area and we leave an area next to it vacant, and over time we monitor how the area where we have recovered diamonds looks like compared to the one that was not touched and we’ve seen that it takes about three to 10 years maximum for that to completely restore. By completely restoring, mean about 70% of the organisms have returned to that place. On the land, it is sand that we are moving and what we do now is that we are using that same sand to keep the sea walls in tact.”

Mertens recently paid a courtesy call on Namibian President Nangolo Mbumba, to introduce the De Beers global ambassador for natural diamonds, Hollywood actor Lupita Nyong’o, and talk to the president about challenges facing Namibia’s diamond industry.

De Beers Natural Diamonds Global Ambassador Lupita Nyong’o, left, Namibia President Nangolo Mbumba, center, and Debmarine CEO Willy Mertens in Windhoek, Namibia, July 19, 2024. (Vitalio Angula/VOA)
De Beers Natural Diamonds Global Ambassador Lupita Nyong’o, left, Namibia President Nangolo Mbumba, center, and Debmarine CEO Willy Mertens in Windhoek, Namibia, July 19, 2024. (Vitalio Angula/VOA)
President Mbumba lamented a proposal for the Kimberley process — the process meant to screen out so-called “conflict diamonds” from entering the international market — to begin certifying all diamonds in Antwerp, Belgium.

The Group of Seven largest economies said that is an effort to prevent Russian diamonds from being sold abroad.

Mbumba said the measure would hurt African diamond producers.

“Recently, the decision was made by the G7 countries to route all rough and polished diamonds destined for G7 countries via Belgium,” said Mbumba. “This decision poses a serious risk and threat to our economies, especially the economies of Angola, Botswana and Namibia by increasing the cost as well as curtailing freedom of trade for our countries’ products.”

Namibia’s president said he and his counterparts from Angola and Botswana have written a letter to the G7 to ask them to halt their plans.

Source: DCL

Botswana aims to negotiate bigger stake in HB Antwerp diamond dealer

Botswana intends to renegotiate its proposed purchase of a stake in Belgian gem dealer HB Antwerp to double the size of its shareholding at no extra cost following the downturn in the diamond market, the country’s mines minister said on Tuesday.

Botswana is the world’s biggest diamond producer by value, meaning its economy has been disproportionately hit by a drop in demand for diamonds caused by a global economic slowdown.

Lefoko Moagi told Parliament the weaker diamond market had also affected the company’s valuation, giving the country room to renegotiate.

“We will not be injecting more capital, but we will get more shares for the same amount proposed in 2023,” Moagi said. “Instead of the 24%, we will negotiate to get 49.9% for the same amount initially proposed.”

Finance ministry budget documents showed in February that the country had set aside 890 million pula ($65.95 million) for the 24% stake, valuing the Belgian company at about $275-million.

The HB Antwerp deal was announced during Botswana’s negotiations for a new sales contract with Anglo American’s diamond unit De Beers in March 2023.

As Botswana sought to increase its power to market its stones outside a decades-old agreement with De Beers, it said the HB Antwerp deal would strengthen its presence in the downstream diamond industry.

It includes supplying the trader with rough diamonds for five years through the state-owned Okavango Diamond Company (ODC).

Source: miningweekly

Botswana’s diamond market suffers major blow as sales drop by 49% in first half of 2024

According to Botswana’s central bank data, sales of rough diamonds at Debswana Diamond Company fell by 49.2%, amounting to $1.29 billion compared to $2.54 billion in the same period last year.

In local currency, sales of rough diamonds decreased by 47.3% to 17.555 billion pula compared to the same period last year.

This decline in sales is a major blow to the South African nation, which derives 30%-40% of its revenue, 75% of its foreign exchange earnings, and a third of its national output from sales of rough diamonds.

The report highlighted the downturn in the global diamond market as the primary reason for this sharp decline.

In response to the weak consumer demand, Anglo American cut its diamond production by 19% in the first six months of the year.

The report highlighted the downturn in the global diamond market as the primary reason for this sharp decline.

Botswana derives 30%-40% of its revenue, 75% of its foreign exchange earnings, and a third of its national output from sales of rough diamonds.

The Debswana Diamond Company is a joint venture between the government of Botswana and Anglo American Plc’s De Beers. Anglo American Plc’s De Beers sells 75% of its output to De Beers, while the balance is taken up by the state-owned Okavango Diamond Company.

Despite the current economic challenges, Botswana and De Beers signed a ten-year diamond sales agreement in June.

This deal will gradually see the share of Debswana’s output sold by the state-owned company increase from 25% to 30% before it goes up to 40% in five years and eventually 50% by the end of the new contract.

According to the key points in the agreement, this strategic move aims to boost Botswana’s revenue from its diamond resources.

Source: africa.businessinsider

De Beers Rough Production Down 15%

De Beers reported a 15 per cent drop in its global diamond production in Q2, as demand remained weak for yet another quarter.

The H1 figure (16.5m carats) is down 19 per cent on the same period in 2023.

The total number of carats recovered during Q2 2024 was 6.4m, down from 7.6m year-on-year. Botswana, which accounts for around two thirds all De Beers’ production, was worst hit, with output down 19 per cent.

De Beers blamed “intentional lower production from short-term changes in plant feed mix at Jwaneng to process existing surface stockpiles”.

Jwaneng, De Beers’ biggest deposit saw output drop 36 per cent during the quarter, from 2.5m carats to 1.9m.

Production in Namibia was down 8 per cent, Canada slipped 1 per cent and South Africa increased by 8 per cent.

In its Production Report for the Second Quarter of 2024, De Beers said guidance for the year remained unchanged at 26m-29m carats.

But parent company Anglo American has indicated that production for the year (originally given as 29m-32m carats) could well be further reduced to manage working capital and preserve cash in a weak market.

Source: DCLA

De Beers cut diamond production

In a significant move, the world’s largest diamond mining company by value has announced further production cuts, adding to its already implemented plan to curtail output by 10 percent. This decision led to a 15 percent year-on-year decline in second-quarter production, dropping to 6.4 million carats, as reported in an update on Thursday.

The potential sale or listing of De Beers was a crucial component of Anglo’s broader strategy to fend off a £39 billion takeover bid from industry giant BHP earlier this year. However, the ongoing slump in the diamond market poses a challenge to achieving this goal by the end of 2025.

“Trading conditions became more challenging in the second quarter as Chinese consumer demand remained subdued,” stated Duncan Wanblad, Anglo’s chief executive.

High inventories for diamond traders and manufacturers, coupled with expectations of a slow recovery, have prompted the company to consider further production cuts. This strategy aims to manage working capital and preserve cash amid the tough market conditions.

The prospect of deeper production cuts comes as the company disclosed the impact of other setbacks in its second-quarter production update, which had been anticipated by analysts.

Anglo has downgraded its full-year guidance for metallurgical coal from 15-17 million tonnes to 14-15.5 million tonnes following a fire at its Grosvenor mine in Australia, which has been out of action for months. Costs for the coal business are also expected to rise significantly this year, estimated at $130 to $140 per tonne, up from $115 per tonne.

The company is prioritising the sale of its metallurgical coal division due to strong buyer interest, with plans to divest De Beers, its platinum unit, and nickel operations to follow.

Additionally, an impairment on the Woodsmith fertiliser mine in North Yorkshire, UK, is expected in the upcoming half-year results, as spending on the project is drastically cut back as part of the turnaround plan.

Despite these challenges, shares in Anglo rose by 2 percent in early trading in London on Thursday, buoyed by production results for most commodities exceeding consensus analyst forecasts. The company achieved record second-quarter iron ore production in Brazil and is on track to meet its guidance for the copper unit.

Wanblad reaffirmed his commitment to streamlining the company to focus on just copper, iron ore, and fertiliser within 18 months. “We are working at pace to execute on the asset divestments, including steelmaking coal,” he said. “Work is progressing with the aim of substantively completing this transformation by the end of 2025.”

Source: DCLA