Sourcing

De Beers’ Production Drops 15% in Q2

SourcingJul 23, 2024

De Beers’ Production Drops 15% in Q2

The company also reported the $150 million sale of an iron ore royalty right, part of its ongoing effort to divest “non-core” assets.

De Beers rough diamond display
De Beers Group mined 6.4 million carats of diamonds in the second quarter of 2024, down from 7.6 million in the same period last year. (©De Beers Group/Photo credit: Ben Perry @ Armoury Films)
London—Diamond production fell 15 percent in the second quarter for De Beers Group, in line with the lower annual production guidance announced in Q1 report, it said.

According to the miner’s Q2 report released July 18, production dropped to 6.4 million carats from 7.6 million carats in the second quarter 2023.

In Botswana, which accounts for more than 70 percent of the company’s annual output, production fell to 4.7 million carats in the second quarter, down 19 percent from 5.8 million carats in Q2 2023.

De Beers said the drop was driven by lower production at the Jwaneng mine, where it intentionally made short-term changes to the plant feed mix in order to work through existing surface stockpiles.   

Jwaneng also experienced a worker fatality. In a statement released June 18, Debswana (the joint venture between De Beers and the Botswana government) said the worker was killed in an accident involving a crane and drill rig on the morning of June 17. 

“An investigation to understand the circumstances surrounding the incident is ongoing and relevant stakeholders will be updated accordingly,” the statement reads.

“Debswana is providing full support to the family and we kindly request that they be accorded due respect and privacy during this difficult time.”

Production in Namibia fell 8 percent year-over-year from 612,000 carats to 561,000, due in part to planned vessel maintenance at Debmarine Namibia.

In South Africa, production rose 8 percent, jumping from 466,000 carats in the second quarter last year to 505,000 carats. 

De Beers attributes the increase to processing more higher-grade underground ore as it continues to transition its only remaining mine in the country, Venetia, to an underground operation.

Production in Canada was broadly unchanged at 673,000 million carats, a slight dip from 683,000 carats in Q2 last year.

While the market for rough diamonds recovered slightly at the beginning of the year, the miner said demand deteriorated in the second quarter due to higher-than-normal polished inventory in the midstream as well as retailers’ caution in restocking.

Second-quarter 2024 rough diamond sales totaled 7.8 million carats from three sights, up from 7.6 million carats from two sights in Q2 2023 and 4.9 million carats from two sights in Q1 2024.

The first-half 2024 consolidated average realized price remained broadly flat year-over-year at $164 per carat, reflecting a larger proportion of higher-value rough diamonds being sold, offset by a 20 percent drop in the average rough price index compared to H1 2023

As previously reported, De Beers will cease rough diamond sight sale announcements following its Q2 production report. Moving forward, the miner said it will report the information quarterly. 

Its 2024 production guidance, lowered in the previous quarter, remains at 26-29 million carats. Unit cost guidance also remains unchanged at $90 per carat. 

Because of the congested midstream and an expected prolonged recovery, De Beers said it is seeking to further reduce production to save money. 

 Related stories will be right here … 

De Beers also is working to offload non-core assets in an effort to cut costs, a key part of its “Origins” strategy unveiled during the Las Vegas shows earlier this summer. 

The company announced Monday it has sold a royalty right for an iron ore deposit associated with the Onslow Iron project in West Pilbara, Australia, for $150 million. 

De Beers discovered the iron ore deposit while exploring for diamonds in the area. It subsequently sold the ground for cash and a royalty right. 

Taurus Funds Management will acquire De Beers Exploration Australia, the subsidiary that owns the royalty, for $125 million upfront and up to $25 million of deferred consideration. 

“As part of our Origins strategy, we committed to streamlining the De Beers business. We have already seen significant progress in reducing our overhead costs by reshaping our workforce in support of the new strategy, and the sale of this royalty right continues the process of business streamlining as we exit this non-core asset at the right time and for value,” De Beers Group CEO Al Cook said.  

“With a simpler and more efficient corporate structure, we will sharpen our focus on our core business of producing the world’s most beautiful natural diamonds and bringing them to market through the most value-adding channels.” 

The sale is expected to close at the end of 2024, pending customary closing conditions. 

The Latest

Sylvie Jewelry Auranova Collection Campaign Imagery
CollectionsApr 25, 2025
Sylvie Looks to Water in New Sculptural Bridal Collection

“Shell Auranova” is the next generation of the brand’s bridal line, featuring half-bezel engagement rings with bold and fluid designs.

Pomellato Nudo toi et moi ring
FinancialsApr 25, 2025
Kering’s Jewelry Brands Persevere as Q1 Sales Sink 14%

Boucheron and Pomellato performed well in an otherwise bleak quarter for Kering amid struggles at Gucci.

Deborah Meyers Experience The Birds Earrings
EditorsApr 25, 2025
Piece of the Week: Deborah Meyers Experience’s ‘The Birds’ Earrings

Designer Deborah Meyers created her birds from oxidized sterling silver, rose-cut diamond eyes, and Akoya Keshi pearl feathers.

ejap cohort 1872x1052.png
Brought to you by
Emerging Jewelers Accelerator Program Announces Second Cohort of Aspiring Jewelry Entrepreneurs

Six new retail businesses were selected for the 2025 program, which began in January.

LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (1).jpg
Supplier BulletinApr 24, 2025
Protect Your Customers and Your Business

Sponsored by the Gemological Institute of America

Weekly QuizApr 24, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Wolf CEO Simon Wolf
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. Expansion

Simon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.

Iowa jeweler Herman Ginsberg
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99

A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.

gia1d100 btyb.jpg
Brought to you by
Protect Your Customers and Your Business

The risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.

Charles & Colvard moissanite ring
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to Noncompliance

The company failed to file its quarterly reports in a timely manner.

Mined + Found "Hope" Matchbox Locket
TrendsApr 24, 2025
Amanda’s Style File: So Charming

Charms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.

Bulgari’s expanded factory in Valenza, Italy
MajorsApr 23, 2025
Bulgari Doubles Size of Jewelry Factory in Italy

Located in Valenza, the now 355,000-square-foot facility includes a new jewelry school that’s open to the public, Scuola Bulgari.

Jason McNary accepting FGI Fine Jewelry Rising Star award for Paola Sasplugas
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ Award

Paola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.

1999 Cosmograph Daytona, Ref.16516
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to Auction

A platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.

Carmelo Anthony and Jaylen Brown David Yurman campaign
MajorsApr 23, 2025
David Yurman’s New Campaign Stars Carmelo Anthony, Jaylen Brown

The basketball stars wear men’s jewelry from the “Curb Chain” collection.

Woman wearing Zales jewelry
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine Jewelry

The Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.

JAR Apricot Blossom bracelet
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry Collection

The 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.

National Jeweler columnist Lilian Raji
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of Mouth

Lilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.

Avi Levy
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth Officer

GCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.

Scottsdale Fine Jewelers store exterior
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow Independent

The Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.

Cartier Exhibition Installation at Victoria & Albert Museum
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display

“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.

Bill and Birdie Levine of Van Cott Jewelers
IndependentsApr 21, 2025
New York Jeweler to Close After 111 Years

Van Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.

IJO Director Samantha Larson
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise Strategy

Industry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.

Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host Convention

The two organizations will hold the educational event together this fall in Mississippi.

Daymond John
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las Vegas

The entrepreneur and “Shark Tank” star will share his top tips for success.

Dukachi Easter Bread Pendant
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ Pendant

The Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.

Bremer Jewelry
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated Store

The jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.

Tiffany & Co. Strong Like Mom campaign
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day Campaign

The “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.

×

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