Sourcing

De Beers to Mine More Diamonds This Year Than Originally Planned

SourcingJul 26, 2022

De Beers to Mine More Diamonds This Year Than Originally Planned

The company upped its 2022 production guidance despite warning of a potential slowdown in diamond jewelry sales. Here’s why.

De Beers Group now plans to mine up to 34 million carats of rough diamonds in 2022 due to ongoing sanctions on Alrosa and continued development of tools like its Tracr blockchain platform. (©De Beers Group/Photo credit: Ben Perry @ Armoury Films)
London—De Beers Group is increasing is 2022 production guidance, citing the ongoing sanctions against Russia and continued development of provenance platforms like Tracr, which it says can track diamonds from mine to market.  
 
In reporting its second-quarter production results last Thursday, De Beers said it is increasing its 2022 guidance to 32-34 million carats, up from 30-33 million carats. 
 
“While consumer demand for natural diamonds continued to be robust in the first half, a deterioration of global macro-economic conditions and reduced consumer spending could impact demand for diamond jewelry,” the company said. 
 
“Despite this, the combination of ongoing sanctions against Russia, decisions from a number of U.S.-based jewelry businesses to apply their own restrictions on purchases of Russian diamonds, and continued development of provenance initiatives has the potential to underpin continued demand for De Beers’ rough diamonds.” 
 
De Beers said rough diamond sales totaled 9.4 million carats from three sights in the second quarter, up from 7.3 million from two sights in Q2 2021 and 7.9 million from two sights in Q1 2022. 
 
Diamond prices also continue to rise.
 
De Beers’ average realized price has increased 58 percent in the first half of the year to $213/carat (H1 2021: $135/carat). 
 
The rough diamond price index is up 28 percent, reflecting consumer demand as well as tight supply across the value chain. 
 
 Related stories will be right here … 
 
While De Beers aims to increase production for 2022, treatment of lower-grade ore at its operations in Botswana and Canada led to a dip in Q2. 
 
The company’s rough diamond production was down 4 percent year-over-year to 7.9 million carats compared with 8.2 million carats in Q2 2021.
 
In Botswana, production slipped 4 percent to 5.5 million carats due to the processing of lower-grade ore at both the Jwaneng and Orapa mines. 
 
Production was also down 4 percent in South Africa and fell 28 percent in Canada to 643,000 carats due to the treatment of lower-grade ore, unscheduled plant maintenance and COVID-related absenteeism. 
 
Namibia was the only country to report an increase in production, with recovery climbing 68 percent to 565,000 carats due primarily to the performance of the Benguela Gem, the new marine mining vessel that launched in the first quarter.

Year-to-date, De Beers’ production is up 10 percent, totaling 16.9 million carats compared with 15.4 million at the same time last year. 
 
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

WatchesAug 19, 2022
WatchBox Names Jack Forster Global Editorial Director

He was previously editor-in-chief at Hodinkee.

CollectionsAug 19, 2022
Piece of the Week: Akaila Reid’s ‘Wavy’ Bangle

It’s the hero piece of the emerging designer’s new “Wavy Baby” collection.

Supplier BulletinAug 18, 2022
Why Online Auctions Are Ideal For Selling Hard-To-Find Jewelry

Sponsored by HiBid

Brought to you by
The American Mined™ Collection: Ethical Sourcing That Matters

Rio Grande provides a pathway to responsibly sourced gemstones.

ColumnistsAug 18, 2022
Squirrel Spotting: The Travails of Attracting and Retaining Talent

The job market is tight, making it paramount for employers to have the type of culture employees really crave, Peter Smith writes.

Weekly QuizAug 18, 2022
This Week’s Quiz
Test your knowledge of the latest jewelry news with this quick test.
Take the Quiz
MajorsAug 18, 2022
Pandora Charms Pet Owners with New Accessories

The jewelry company has also hired a new chief marketing officer.

CollectionsAug 18, 2022
Hearts On Fire’s Latest Collection Reaches for the Sky

“Aerial” is edgy and glamorous, inspired by nature’s wild forms.

Brought to you by
Knowledge and Skills for Today’s Hot Topics

From laboratory-grown diamonds to design to country-of-origin, GIA's Alumni Collective™ has a seminar to suite your needs.

GradingAug 18, 2022
VDB, Lab Grown Source Add 8X to Cut Grade Search Filter

8X is now the top cut grade on both platforms, above Ideal.

CollectionsAug 17, 2022
Playing Doubles: Monica Rich Kosann, Chris Evert Team Up on Tennis Bracelets

It is the first tennis bracelet collab for the legend, whose lost-and-found moment put the term “tennis bracelet” in the jewelry lexicon.

FinancialsAug 17, 2022
Watches of Switzerland’s US Sales Double in Q1

The company posted a strong start to the year but is cautious about the second half.

Events & AwardsAug 17, 2022
6 Things to Know About the Second HardRock Summit

The event will bring gems, minerals, and fossils under one roof from Sept. 8-11 in Denver.

Lab-GrownAug 16, 2022
Pandora’s Lab-Grown Diamond Line Heads to the U.S.

The announcement preceded the Danish company’s release of its second-quarter results.

ColumnistsAug 16, 2022
The PR Adviser: Describe Your Customer

Columnist Lilian Raji continues her tour of the customer journey by asking, who is your customer? And, what do they like?

EditorsAug 16, 2022
Tiffany’s ‘Lock’ Bangle May Be Its Answer to Cartier’s ‘Love’ Bracelet

The unisex style succeeds in several ways while saying a lot about what’s trending in jewelry, writes Senior Editor, Fashion, Ashley Davis.

CrimeAug 16, 2022
3 Packages Containing $6.9M in Fake Watches, Jewelry Seized in Ohio

Customs officers in Cincinnati intercepted the shipments in early August, finding counterfeit Cartier jewels and Rolex watches.

Events & AwardsAug 15, 2022
David Webb to Hold an Exhibition of Its Animal Jewelry

“A Walk in the Woods” will open at the brand’s Madison Avenue flagship this fall.

Events & AwardsAug 15, 2022
Plumb Club, JVC to Hold Webinar on Sustainability Marketing

The Jewelers Vigilance Committee’s Sara Yood will give an overview of what the FTC guidelines currently say and what may be changing.

Lab-GrownAug 12, 2022
Report: State Bank of India to Begin Lending to Lab-Grown Producers

The loans will go mostly to the import of machinery rather than working capital, according to a recent article from The Economic Times.

FinancialsAug 12, 2022
Brilliant Earth’s Fine Jewelry a Hit in Q2

The company is also continuing its retail expansion.

AuctionsAug 12, 2022
2 Rolexes Paul Newman Gave to Stuntman Stan Barrett Head to Auction

The sale also will include a third Rolex, with all three watches tied to Barrett’s 1979 attempt to break the world record for land speed.

CollectionsAug 12, 2022
Piece of the Week: İTÄ Jewelry’s ‘Danza’ Ring

It mixes diamond shapes and colors.

Supplier BulletinAug 11, 2022
AGTA GemFair™ Denver – Back and Better Than Before!

Sponsored by AGTA

AuctionsAug 11, 2022
Sotheby’s Is Preparing its First Art Jewelry Auction This Fall

“Art as Jewelry as Art” features works from artists like Salvador Dalí, Alexander Calder, and Max Ernst.

IndependentsAug 11, 2022
Martin Katz Is Moving to a Penthouse

The jeweler is relocating his Beverly Hills store after 20 years and has begun developing a lifestyle brand.

MajorsAug 11, 2022
Brilliant Earth Opens First Missouri Showroom in St. Louis

It’s the company’s seventh showroom opening this year.

Events & AwardsAug 11, 2022
HRD Antwerp Is Bringing Back Its Jewelry Design Competition

The Belgian organization is calling for entries from all over the world, with an eye on attracting emerging talent.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy