Sourcing

De Beers’ Diamond Production Flat in Q1

SourcingApr 26, 2023

De Beers’ Diamond Production Flat in Q1

De Beers said the main reason production leveled off in the first quarter is Venetia, which is transitioning to an underground operation.

This photo shows trucks at De Beers Group’s Orapa mine in Botswana. The country’s diamond production increased 12 percent year-over-year in the first quarter, due in part to the robust performance of the processing plant at Orapa. (©De Beers Group/Photo credit: Ben Perry @ Armoury Films)
London—Diamond production was flat in the first quarter for De Beers Group, due mainly to South Africa’s Venetia mine being in a transitional period.

First-quarter diamond production totaled 8.93 million carats for De Beers, compared with 8.94 million carats in the first quarter 2022, the company reported Tuesday.

Compared with the fourth quarter 2022 (8.2 million carats), production was up 10 percent.

In three of the countries where De Beers operates—Botswana, Namibia, and Canada—first-quarter production was positive year-over-year, but those gains were offset by South Africa, where production fell 56 percent to 739,000 carats as the country’s only diamond mine moves from an open-pit to an underground operation. 

The open pit at Venetia closed at the end of 2022, and workers there currently are only processing lower-grade surface stockpiles while the mine transitions.

De Beers began working on taking Venetia underground in 2013, a $2 billion project expected to extend the life of the mine to 2046 and produce around 94 million carats.

In Botswana, which accounts for more than 75 percent of De Beers’ total production, diamond production increased 12 percent year-over-year in the first quarter to 6.9 million carats, driven by planned treatment of higher-grade ore and the continued robust performance of the processing plant at the Orapa mine. 

 Related stories will be right here … 

De Beers and the government of Botswana are in the midst of renegotiating their sales agreement, which originally expired at the end of 2020. The two parties have extended the deadline to reach a new agreement three times.

The current sales contract is set to expire in June.

Production in neighboring Namibia, meanwhile, was up 37 percent to 619,000 carats due to the continued output of the new marine mining vessel, the Benguela Gem.

In Canada, production rose 11 percent to 673,000 carats despite unplanned maintenance challenges, De Beers said.

De Beers’ release on its Q1 production results repeated what new CEO Al Cook said earlier this year—sightholders are pushing rough diamond purchases until later in the year because of economic uncertainty.

In volume terms, rough diamond sales have totaled 9.7 million from three sights so far this year compared with 7.9 million carats from two sights in the first quarter 2022, and 7.3 million carats from two sights in the fourth quarter 2022.

De Beers said its production guidance for the year remains unchanged at 30 million to 33 million carats, down from the 34 million carats it mined in 2022.

The Latest

Chrono24 ChronoPulse
WatchesDec 04, 2023
Chrono24 Debuts the ‘Dow Jones’ for Luxury Watches

The watch seller’s new index tracks sales data from 14 brands, including Rolex and Patek Philippe.

David Bouffard Signet Jewelers
MajorsDec 04, 2023
David Bouffard to Leave Signet, RJC

The industry veteran will step down from both roles in April 2024.

David Webb turquoise and lapis ring
TrendsDec 04, 2023
Amanda’s Style File: Decadent December

Tanzanite, turquoise, and zircon are all options for December babies, who sometimes “get the birthday shaft,” Amanda Gizzi writes.

De Beers | Diamonds Falling
Brought to you by
The Most Important “C” in Diamonds: Confidence!

Without the ability to instill confidence within the industry and directly to the consumer, a diamond holds very little value.

Lightbox x Roséate Light Wand pendants
Lab-GrownDec 01, 2023
Lightbox Teams Up With Brand Founded by Former Tiffany Exec

The lab-grown diamond brand also collaborated with the website The Future Rocks on a collection launching today.

Weekly QuizNov 30, 2023
This Week’s Quiz
Test your jewelry news knowledge with this short test.
Take the Quiz
Lila Moss Calvin Klein campaign
FinancialsDec 01, 2023
Movado Lowers Guidance Again After Q3 Sales Dip

The company said it is facing a “challenging retail environment” but is prepared for the holiday season.

Muzo emerald and argyle pink diamond necklace
CollectionsDec 01, 2023
Piece of the Week: Muzo’s Emerald and Argyle Pink Diamond Necklace

It’s the hero piece of the newest "Green Jewel" collection, a collaborative offering from the two mines.

Platinum  Guild International Diamond Rings
Brought to you by
If It’s Custom, Make It Platinum

With holiday proposals right around the corner, encourage your customers to go for platinum when making the big purchase.

Pink Supreme Diamond
AuctionsNov 30, 2023
This Pink Diamond Reigned Supreme in Hong Kong

The 15.48-carat fancy intense “Pink Supreme” topped Christie’s fall jewelry auction in Asia, while a Patek Philippe led the watch sale.

Claire’s CFO COO Chris Cramer
MajorsNov 30, 2023
Claire’s Hires Former Bath & Body Works Exec as CFO, COO

Chris Cramer, who also spent time at Gen Z intimates brand Parade, will take on the dual role.

133 carat yellow diamond
AuctionsNov 30, 2023
Sotheby’s To Auction 133-Carat Yellow Diamond

The stone headlining the upcoming sale could fetch up to $5 million.

Kwiat diamonds
IndependentsNov 30, 2023
Frank Adams Rolls Out Kwiat’s ‘Mine to Shine’ Program

The retail offering lets customers track their diamond’s journey.

Holiday shoppers holding bags
SurveysNov 29, 2023
Holiday Shoppers Broke a Record This Weekend, Says NRF

From Thanksgiving through Cyber Monday, 200.4 million consumers shopped online and in stores.

Cast StyleBar Nordstrom
MajorsNov 29, 2023
Cast Debuts at Nordstrom, Closes on More VC Funding

The growing company also plans to open more of its own boutiques.

20180509_Buffett-header.jpg
EditorsNov 29, 2023
Warren Buffett on Success, Mistakes and Betting on America

The best quotes from the Oracle of Omaha and his right-hand man Charlie Munger from the 2018 Berkshire Hathaway shareholders meeting.

J. Dostie Jewelers
IndependentsNov 28, 2023
Maine Jeweler to Relocate After 76 Years

J. Dostie Jewelers will move from Lewiston to Yarmouth this spring.

Finks Jewelers new store
IndependentsNov 28, 2023
Fink’s Jewelers Opens 10th Store

It’s the company’s second location in Tennessee.

Mary Tyler Moore and a pair of Elsa Peretti Bone Cuffs
AuctionsNov 28, 2023
Mary Tyler Moore’s Jewelry Is Up For Auction

You can have this jewelry, why don’t you take it?

Original Miami Beach Antique Show 2024
Events & AwardsNov 28, 2023
The Original Miami Beach Antique Show Is Celebrating 60 Years

Next year’s milestone show will be full of educational programming and collaborations.

De Beers Metamorphosis high jewelry earrings
EditorsNov 27, 2023
10 Tips for Selling Diamonds This Holiday Season

Sales experts and a diamantaire share their best advice on how to send customers home with diamond jewelry.

Platinum Born new collection
CollectionsNov 27, 2023
See the New ‘Platinum Born’ Jewelry

The brand has released five new collections.

Frank Adams Jewelers
IndependentsNov 27, 2023
Frank Adams Jewelers Named ‘Family Business of the Year’

The Albany Business Review recently honored the 100-year-old company.

GIA Dr. John W. Valley
GradingNov 27, 2023
Dr. John W. Valley Retires from GIA Board of Governors

To honor his legacy, GIA has set up a scholarship in his name.

Stock image of police car with its lights on
CrimeNov 22, 2023
JSA Warns of Surge in Attacks on Jewelers on the Road

There have been eight attacks in the last month, spanning from a jewelry store parking lot in Rhode Island to highways in California.

Buddha Mama citrine bangle
TrendsNov 22, 2023
Amanda’s Style File: November Glow

These 15 pieces of jewelry celebrate November babies and the hues of citrine and topaz that reflect the colors of the season.

Columbia Gem House fundraiser
SourcingNov 22, 2023
Columbia Gem House Raises $12K for Wildlife

The money will help a nonprofit rehabilitate sea turtles.

Facet Barcelona factory opening
MajorsNov 22, 2023
Facet Barcelona Opens New Factory in Spain

The jewelry manufacturer said it can now better serve the North American market.

×

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