Diamond mining behemoth, De Beers this week announced another round of strong rough diamond sales in the company’s sixth sales cycle of the year, selling diamonds worth $630 million, slightly lower than the previous cycle that netted $657 million.
Bruce Cleaver, De Beers Chief Executive says the company continued to see steady demand for its rough diamonds, following “a period of consistently robust demand in the first half” of this year.
Owing to the restrictions on the movement of people and products in various jurisdictions around the globe, De Beers Group has continued to implement a more flexible approach to rough diamond sales during the sixth sales cycle of 2022, with the Sight event extended beyond its normal week-long duration.
De Beers, which is 85 percent owned by Anglo American and 15 percent by Botswana government, sells rough diamonds through ten Global Sightholder Sales and Auction Sales held every year in Gaborone, with the sights or auction sales restricted to its top 80 Sightholders who buy the diamond packages at a price determined by the company.
With Russian diamonds off-limits due to sanctions against companies, including Alrosa, the world’s largest producer of rough diamonds that competes with Botswana linked – De Beers, demand for rough diamonds has risen this year.
According to Anglo American, De Beer’s major shareholder, a combination of ongoing sanctions against Russia and decisions by a number of US-based jewellery businesses to apply their own restrictions on purchases of Russian diamonds has the potential to underpin continued robust demand for De Beers’ rough diamonds. Also working in De Beers’s favour is the continued development of provenance initiatives such as the TracrTM blockchain platform.
Given the development, Anglo American has since revised its production forecast backed by the anticipated increase in demand for diamonds that are from non-conflict zones.
In 2021, the diamond mining juggernaut staged a strong recovery, selling $4.81 billion of rough diamonds in all of the ten sales circles, eclipsing the $2.79 billion earned in 2020 after Covid-19 roiled the diamond industry, reducing the gains made in 2019 after the diamond miner sold $4 billion worth of rough diamonds.
Meanwhile Anglo American says it has increased its 2022 production target to 32–34 million carats (previously 30-33 million carats), subject to trading conditions and the extent of further Covid-19 related disruptions.