De Beers' production decreased by 23% in the third quarter; India's "Diamond King" will no longer distribute cars to employees this year
De Beers' production decreased by 23% in the third quarter; India's "Diamond King" will no longer distribute cars to employees this year
De Beers announced today that due to the diversion of Venetia mine in South Africa to underground mining and the maintenance of Botswana mine, the output of rough diamonds in the third quarter of this year (as of September 30, 2023) was 7.408 million carats, down 23% year on year.
From four different mining countries:
·The output of Botswana is 5.837 million carats, a year-on-year decrease of 12%, of which the output of Orapa mine has declined due to maintenance.
·Namibia's production is 530000 carats, which is the same as the same period last year.
·South Africa's production reached 365000 carats, a year-on-year decrease of 78%. The open-pit section of the Venetia mine has ceased mining as planned in December 2022 and will complete its transfer to the underground mine in the coming years.
Canada's production was 676000 carats, a year-on-year decrease of 9%, as some lower grade ores were mined as planned this quarter.
De Beers stated in a statement that due to the uncertainty of the overall environment and the relatively high inventory of bare diamonds in the midstream, buyers are very cautious about purchasing raw materials this quarter.
This quarter, a total of three trade shows were held, with a total sales volume of 7.4 million carats, which is not only lower than 9.1 million carats in the same period last year, but also lower than 7.6 million carats in the second quarter of this year (two trade shows).
De Beers stated that the group will continue to support the onlookers and provide them with complete flexibility in the remaining two onlookers this year to help rebuild the supply and demand balance at the wholesale level.
At present, De Beers has not changed its production plan for 2023, which is 30 to 33 million carats.
According to The Blunt Times, Savji Dholakia, Chairman of the Board of Directors of Shree Hari Krishna Exports, the "King of Diamonds" in Surat, India, "will not give prizes to outstanding employees" this year.
For many years, Savji has been known in Surat for generously rewarding outstanding employees during Diwali Festival. It is said that it once presented cars, jewelry, and even apartments as "year-end bonuses" to the company's outstanding employees. But for the first time this year, it was decided not to distribute prizes.
The reason is the decline of the diamond industry
The commentary said that the Russia-Ukraine conflict last year, the recent Palestinian Israeli conflict, the economic recession in the United States, and the weak recovery of the Chinese market have all brought serious blows to the Indian diamond industry. Many factories have adopted a double week off system, and small factories even enter the Diwali Festival holiday ahead of schedule. In this context, the Indian diamond industry voluntarily stopped importing rough diamonds from October 15th to December 15th.
The diamond industry is undergoing significant changes, and we will continue to monitor news from India and share it with industry partners in a timely manner.
