Diamond production rises as demand strengthens
Mbongeni Mguni | Wednesday July 21, 2021 14:14
Debswana’s output in the second quarter was 214% higher than the amount produced in the corresponding quarter of 2020, a period hit by COVID-19 restrictions and global demand weakness. The latest figures underline the cautious recovery of the rough diamond sector, which in turn is underpinned by rising consumer demand in the key markets of the United States and China.
In a commentary earlier today, Anglo American officials said consumer demand for polished diamonds continues to recover, leading to strong demand for rough diamonds from midstream cutting and polishing centres.
This is despite the impact on capacity from the severe Covid-19 wave in India during April and May. Anglo American holds 85% equity in De Beers, which in turn holds 50% shareholding in Debswana, with the balance held by the Government of Botswana. Debswana’s second quarter production accounted for about 70% of De Beers’ total production of 8.2 million carats for the quarter.
Half year production for Debswana reached 10.7 million carats or 43% higher than the corresponding period last year. Average diamond prices across the De Beers mines globally were 13% higher in the first half of the year due to an “increased proportion of higher value rough diamonds sold,” officials said.