Sunday, September 20, 2020

De Beers’ Q3 diamond production shows Uptick

De beers reported a recovery in its diamond production in the third quarter ended 30 September 2016 compared to the corresponding period in 2015 when production took a knock due to market indigestion. 

The production report, released by the mining Group Anglo America, cites that production increased by 4 percent to 6.3 million. Although this reflects a slight increase, the recovery warrants a mention given that it happened on the backdrop of a tough trading environment.   

“At Debswana (Botswana), production increased by 12% to 4.5 million carats with production at Jwaneng increasing by 47% as a result of planned maintenance inQ3 2015 being prioritized in light of trading conditions. This was partly offset by a planned 22% decrease at Orapa to align aggregate production to trading conditions,” cites the production report.  

Production at DBCM in South Africa is reported to have increased by 6 percent to 1.1 million carats largely as a result of processing higher grades at Venetia and increased throughput at Voorspoed. “This was partly offset by the early completion of the sale of Kimberley Mines in January 2016,” indicates the report.  

In Namibia, production at Namdeb Holdings (Namibia) decreased by 13 percent to 0.4 million carats with lower grades at Namdeb Land, and the Debmar Pacific vessel being in port for planned maintenance in the third quarter of 2016 at Debmarine Namibia.

In terms of comparison, the production report for the second quarter (Q2) ended 30 June 2016 indicated that De Beers’ diamond production decreased by 19 percent to 6.4 million carats in comparison to the corresponding period in 2015. The decline, as was indicated in the report, reflected the decision to reduce production in response to the tough trading conditions in the second half (H2) of 2015. Specific to Debswana the third quarter report shows that between the third and second quarter of 2016, production decreased by 12 percent. 

Regarding rough diamond sales, which in August had showed an improvement, reported an increase as cited in the production report, “Consolidated rough diamond sales in Q3 2016 increased by 77% to 5.3 million carats. This increase reflected improved trading conditions from those experienced inQ3 2015, when higher pipeline stock impacted midstream demand.”

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Sunday Standard September 20 – 26

Digital copy of Sunday Standard issue of September 20 - 26, 2020.