Diamond Production Down, Guidance Revised At De Beers
De Beers, which released its 2Q production results Thursday, said rough diamond production was down 14% to 7,699 carats recovered.
Mine closures, lower grades and planned maintenance schedules affected many of De Beers mines.
De Beers said Botswana (Debswana) production decreased by 9% to 5.7 million carats due to a planned plant shut down. De Beers said its Namibia production decreased by 35% to 0.3 million carats, driven by Elizabeth Bay transitioning onto care and maintenance in Q4 2018 and planned maintenance for the Mafuta crawler vessel.
In Canada, De Beers said production was off by 9% to 1.1 million carats due to planned lower grades at Gahcho Kué. Victor production decreased by 4% to 0.2 million carats as it reached the end of its life during Q2 2019.
De Beers said the market is also soft, and has revised its production guidance downwards to about 31 million carat.
"Demand for rough diamonds remains subdued as a result of challenges in the midstream with higher polished inventories, and caution due to macro-economic uncertainty, including the US – China trade tensions," said the company in its production report.