De Beers Makes Dramatic Cut to Production Plan

De Beers has reduced its full-year production guidance by 7 million carats, putting the miner on course for its lowest output since 2009. 

The miner expects to produce between 25 million and 27 million carats in 2020, compared to the 32 million to 34 million in its original projection, it said Thursday. The revised forecast for 2020 was due to the impact of the COVID-19 pandemic on mining activity and consumer traffic in key markets, the miner noted.

Rough-diamond production for the first quarter of 2020 slipped 1% to 7.8 million carats, roughly in line with the previous year. However, the coronavirus shutdown measures were not implemented at the miner’s sites until the end of the period, and had a limited impact on output, De Beers said.

Sales volume rose 19% to 8.9 million carats for the three months ending March 31. The increase was due to a favorable comparison with the same period the previous year, when demand was weak due to an oversupply of polished stones in the manufacturing sector. Additionally, the decline in demand caused by the pandemic — during which De Beers allowed customers to defer some of their allocations to the second quarter — was offset by higher appetite for lower-value goods, the company noted.

Production in Botswana declined 5% to 5.6 million carats, with diamond recovery at De Beers’ Orapa mine falling 7% as result of challenges in commissioning new plant infrastructure. Output at Jwaneng slipped 4% due to a planned shift to lower-grade ore.

Production in Namibia grew 6% to 511,000 carats, and in South Africa jumped 97% to 751,000 carats, as the final ore from the company’s open-pit operations at Venetia was mined prior to the transition to underground.

Output in Canada slid 19% to 844,000 carats, primarily due to the closure of the Victor mine, which reached its end of life in the second quarter of 2019. Output from Gahcho Kué, which the company owns in partnership with Mountain Province, rose 4% to 844,000 carats.

The first quarter featured two sales cycles, with proceeds falling 9% to $906 million. Demand reached a near-yearlong high in January, but fell again in February as the coronavirus began to spread. The company was forced to cancel its third site, which was due to begin at the end of March.

In 2009, the company slashed production by 49% to 24.6 million carats for the year when the global economic slowdown hit diamond demand. 

Source: DCLA

De Beers Makes Dramatic Cut to Production Plan

De Beers has reduced its full-year production guidance by 7 million carats, putting the miner on course for its lowest output since 2009. 

The miner expects to produce between 25 million and 27 million carats in 2020, compared to the 32 million to 34 million in its original projection, it said Thursday. The revised forecast for 2020 was due to the impact of the COVID-19 pandemic on mining activity and consumer traffic in key markets, the miner noted.

Rough-diamond production for the first quarter of 2020 slipped 1% to 7.8 million carats, roughly in line with the previous year. However, the coronavirus shutdown measures were not implemented at the miner’s sites until the end of the period, and had a limited impact on output, De Beers said.

Sales volume rose 19% to 8.9 million carats for the three months ending March 31. The increase was due to a favorable comparison with the same period the previous year, when demand was weak due to an oversupply of polished stones in the manufacturing sector. Additionally, the decline in demand caused by the pandemic — during which De Beers allowed customers to defer some of their allocations to the second quarter — was offset by higher appetite for lower-value goods, the company noted.

Production in Botswana declined 5% to 5.6 million carats, with diamond recovery at De Beers’ Orapa mine falling 7% as result of challenges in commissioning new plant infrastructure. Output at Jwaneng slipped 4% due to a planned shift to lower-grade ore.

Production in Namibia grew 6% to 511,000 carats, and in South Africa jumped 97% to 751,000 carats, as the final ore from the company’s open-pit operations at Venetia was mined prior to the transition to underground.

Output in Canada slid 19% to 844,000 carats, primarily due to the closure of the Victor mine, which reached its end of life in the second quarter of 2019. Output from Gahcho Kué, which the company owns in partnership with Mountain Province, rose 4% to 844,000 carats.

The first quarter featured two sales cycles, with proceeds falling 9% to $906 million. Demand reached a near-yearlong high in January, but fell again in February as the coronavirus began to spread. The company was forced to cancel its third site, which was due to begin at the end of March.

In 2009, the company slashed production by 49% to 24.6 million carats for the year when the global economic slowdown hit diamond demand. 

Source: DCLA

JCK Las Vegas Canceled for 2020

The 2020 JCK Las Vegas and Luxury shows have been canceled, the events’ organizer has confirmed, as the coronavirus continues to sweep across the globe.

“This decision was made in response to the unprecedented challenges faced by JCK’s jewelry community,” Sarin Bachmann, Reed Jewelry Group’s vice president for the shows, said Tuesday. “We know [it] impacts the entire industry and it was not made lightly.”

The main JCK Las Vegas trade fair was originally scheduled to begin June 2, while its sister event, Luxury, was due to start on May 31. Reed Exhibitions said last month that it was planning to postpone both events to an undetermined later date. However, the organizer has now confirmed that the next editions will take place at the Venetian Resort & Sands Expo in June 2021.

Reed Jewelry Group will host a remote event called JCK Virtual 2020 this summer, it said, noting it was “creating other virtual tools to assist jewelry professionals.” These will supplement the online education and webinars that it has already launched to address challenges related to the coronavirus.

In addition, the organizer said JCK exhibitors would have the opportunity to participate in JIS October, which is slated to run from October 13 to 16 in Miami.

“We will continue to listen to our customers and to facilitate the personal and business connections that our industry is built on, so we can all evolve and emerge stronger and better-connected than ever,” Bachmann added.

Source: DCLA

JCK Las Vegas Canceled for 2020

The 2020 JCK Las Vegas and Luxury shows have been canceled, the events’ organizer has confirmed, as the coronavirus continues to sweep across the globe.

“This decision was made in response to the unprecedented challenges faced by JCK’s jewelry community,” Sarin Bachmann, Reed Jewelry Group’s vice president for the shows, said Tuesday. “We know [it] impacts the entire industry and it was not made lightly.”

The main JCK Las Vegas trade fair was originally scheduled to begin June 2, while its sister event, Luxury, was due to start on May 31. Reed Exhibitions said last month that it was planning to postpone both events to an undetermined later date. However, the organizer has now confirmed that the next editions will take place at the Venetian Resort & Sands Expo in June 2021.

Reed Jewelry Group will host a remote event called JCK Virtual 2020 this summer, it said, noting it was “creating other virtual tools to assist jewelry professionals.” These will supplement the online education and webinars that it has already launched to address challenges related to the coronavirus.

In addition, the organizer said JCK exhibitors would have the opportunity to participate in JIS October, which is slated to run from October 13 to 16 in Miami.

“We will continue to listen to our customers and to facilitate the personal and business connections that our industry is built on, so we can all evolve and emerge stronger and better-connected than ever,” Bachmann added.

Source: DCLA

Ernie Blom Steps Aside as President of WFDB

Ernest “Ernie” Blom, who has served as president of the World Federation of Diamond Bourses for the last eight years, has temporarily resigned from the post.

Yoram Dvash, the president of the Israel Diamond Exchange and a member of the group’s executive committee, was elected as the global group’s acting president during a Zoom meeting with the WFDB’s executive committee.

A letter from Blom, obtained by JCK, said that due to “personal reasons,” he was “unfortunately temporarily unable to continue in office as President.… Therefore, I need to step aside for a period of a time.”

The news comes as Blom’s company, Ernest Blom Diamonds, is engaged in litigation with a WFDB-member bourse, the Dubai Diamond Exchange (DDE), in a dispute over the jurisdiction of an arbitration.

Blom’s claim, filed Jan. 28 in the court of first instance in Dubai, United Arab Emirates, asks that a DDE arbitration award dated Dec. 12 be ruled “void and of no effect.” It asks that the dispute between Blom and three companies be subject to the rules of South Africa and that the arbitration award not be publicized.

Marc De Block, Blom’s lawyer in Antwerp, Belgium, where a similar complaint has been filed, writes via email that it is “regrettable” that Blom had to file the suit but felt he had no choice.

“Mr. Blom has always served and protected the interests of the diamond industry, and this time is no different. Essentially, Mr. Blom was treated very unfairly by the DDE, and I leave it up to the DDE to defend their actions in a court of law…. While the DDE is well aware to have committed very grave errors against my client, and even explicitly acknowledged this, they stubbornly refuse to correct such actions.”

The Dubai Diamond Exchange did not return requests for comment by  publication time.

Blom tells JCK that while the suit probably “played a role” in his stepping aside, he also felt that it was time to move on. He notes that he has now served close to five two-year terms as WFDB president—he also held the job from 2006 to 2008—making him the longest-serving president in the group’s history. He adds that he had planned to step down as president at this year’s Congress in Hong Kong, which is currently still scheduled to be held in November.

“There comes a time when I need to be moving on to other interests,” he says. “I put my heart and soul into the WFDB, and I’m very proud of the legacy I have left.”

His successor, Dvash (pictured below), had been spearheading the new Get Diamonds exchange the group plans to unveil this month, in a challenge to the RapNet platform.

Acting World Federation of Diamond Bourses president Yoram Dvash

“Our industry changed so much,” Dvash tells JCK. “The world is changing, and we have to make huge adjustments. We have a lot to do.”

He hopes to increase initiatives with other groups and mining companies.

“All of us have to work together,” he says. “Alone, we are not strong. We need leadership to bring everyone forward. I believe in this industry. I believe we have a future.”

He also paid tribute to Blom, saying, “He’s a great guy. He put a lot of years into the federation. I wish him all the best.”

Source: DCLA

Ernie Blom Steps Aside as President of WFDB

Ernest “Ernie” Blom, who has served as president of the World Federation of Diamond Bourses for the last eight years, has temporarily resigned from the post.

Yoram Dvash, the president of the Israel Diamond Exchange and a member of the group’s executive committee, was elected as the global group’s acting president during a Zoom meeting with the WFDB’s executive committee.

A letter from Blom, obtained by JCK, said that due to “personal reasons,” he was “unfortunately temporarily unable to continue in office as President.… Therefore, I need to step aside for a period of a time.”

The news comes as Blom’s company, Ernest Blom Diamonds, is engaged in litigation with a WFDB-member bourse, the Dubai Diamond Exchange (DDE), in a dispute over the jurisdiction of an arbitration.

Blom’s claim, filed Jan. 28 in the court of first instance in Dubai, United Arab Emirates, asks that a DDE arbitration award dated Dec. 12 be ruled “void and of no effect.” It asks that the dispute between Blom and three companies be subject to the rules of South Africa and that the arbitration award not be publicized.

Marc De Block, Blom’s lawyer in Antwerp, Belgium, where a similar complaint has been filed, writes via email that it is “regrettable” that Blom had to file the suit but felt he had no choice.

“Mr. Blom has always served and protected the interests of the diamond industry, and this time is no different. Essentially, Mr. Blom was treated very unfairly by the DDE, and I leave it up to the DDE to defend their actions in a court of law…. While the DDE is well aware to have committed very grave errors against my client, and even explicitly acknowledged this, they stubbornly refuse to correct such actions.”

The Dubai Diamond Exchange did not return requests for comment by  publication time.

Blom tells JCK that while the suit probably “played a role” in his stepping aside, he also felt that it was time to move on. He notes that he has now served close to five two-year terms as WFDB president—he also held the job from 2006 to 2008—making him the longest-serving president in the group’s history. He adds that he had planned to step down as president at this year’s Congress in Hong Kong, which is currently still scheduled to be held in November.

“There comes a time when I need to be moving on to other interests,” he says. “I put my heart and soul into the WFDB, and I’m very proud of the legacy I have left.”

His successor, Dvash (pictured below), had been spearheading the new Get Diamonds exchange the group plans to unveil this month, in a challenge to the RapNet platform.

Acting World Federation of Diamond Bourses president Yoram Dvash

“Our industry changed so much,” Dvash tells JCK. “The world is changing, and we have to make huge adjustments. We have a lot to do.”

He hopes to increase initiatives with other groups and mining companies.

“All of us have to work together,” he says. “Alone, we are not strong. We need leadership to bring everyone forward. I believe in this industry. I believe we have a future.”

He also paid tribute to Blom, saying, “He’s a great guy. He put a lot of years into the federation. I wish him all the best.”

Source: DCLA

De Beers Pauses Botswana Mining

De Beers’ mining operations in Botswana have been on hold for more than two weeks amid a national lockdown, the company told Rapaport News.

Debswana, the company’s joint venture with the government, paused activities on April 2 when the coronavirus-related restrictions began, a De Beers spokesperson said Friday. The miner had not previously disclosed its full response to the Botswana lockdown, and will publish an updated production forecast in its operational results this Thursday.

Operations at Debswana are currently limited to essential services, with a small number of staff members still working.

De Beers’ current production outlook for 2020 is 32 million to 34 million carats — a plan that’s been in place since December, when it reduced its guidance due to inventory rebalancing taking place in the industry. It had previously expected to unearth between 33 million and 35 million carats for the year.

Botswana initially instituted a 28-day lockdown, and later extended the state of emergency for six months. Mining has received the status of an essential service, De Beers noted, adding that it was discussing how it could restart operations with health precautions in place.

“Debswana has been engaging with key stakeholders and considering the appropriate recommencement of operations, albeit at a significantly reduced level,” a company spokesperson said.

The country is De Beers’ largest source of rough diamonds, with the Jwaneng and Orapa deposits last year contributing 23.3 million carats of its global output of 30.8 million carats. The pandemic also forced it to cancel its March-April sight in Gaborone, the capital, as buyers were unable to attend or ship goods.

De Beers has also reduced the number of workers at Venetia, its only mine in South Africa, by 75% in response to a lockdown there. In addition, the company has introduced precautions at its Gahcho Kué mine in Canada’s Northwest Territories, including changing workers’ shift patterns to minimize travel.

Source: DCLA