Diamond sales on track to smash six-year record
Mbongeni Mguni | Monday August 8, 2022 06:00
The exports in the half-year to June 30 compare favourably to the P38.1 billion full-year sales figure for 2021, which in turn represented the highest level since 2016.
Debswana sells 25% of its production to state-owned diamond trader, Okavango Diamond Company and the balance through the De Beers sales platform. While some rough diamonds sold by De Beers to cutting and polishing firms are in turn sold as jewellery locally, the majority of Debswana’s production is exported abroad.
Recent figures from the Bank of Botswana underline the continuing resurgence of rough diamond demand seen since the robust sales last year. According to the data, Debswana’s sales reached P12.7 billion in the first three months of the year, before accelerating to P18.3 billion for the last three months of the half-year.
De Beers' executive vice president responsible for diamond trading, Paul Rowley told a media briefing last Thursday that rough diamond sales in the first half of the year were supported by strong US consumer demand for diamond jewellery and tightness in supply due to the sanctions imposed on Russia.
De Beers, which holds 50% equity in Debswana, alongside government, saw its rough diamond sales for the half year to June rising to $3.3 billion (P41.3 billion) from $2.6 billion (P32.5 billion) over the corresponding period last year.
“We are very happy with the positive results for the half year,” Rowley said. “The period was very solid with our mines working very robustly across the board.”
De Beers’ recently released production results for the half year indicate that Debswana’s production rose nine percent year-on-year to 11.7 million carats. Debswana accounted for about 70% of De Beers’ production in the first half of the year.
Average prices for Debswana rose to $189 per carat over the period to June, compared with $131 per carat over the corresponding period last year.
Debswana’s sales are the primary contributor to government’s budget revenues and foreign currency receipts.