How Russkiye Samotsvety is coping with the current downturn

One of the key issues facing most Russian companies today is the need for an objective assessment of the new consumption decline due to the quarantine, as well as making forecasts for a way out of it. According to a RBC-Petersburg’s study made in June...

Yesterday

Global rough diamond sales down 80-90% in value in Q2 –Zimnisky

The COVID-19 pandemic, which is spreading across the globe, having originated from China’s Wuhan has left diamond traders and buyers at sixes and sevens. Traditional diamond tenders were cancelled around March as governments imposed travel restrictions...

27 july 2020

Indian diamond and polishing industry requires forward integration - Dinesh Navadiya

Dinesh Navadiya is now the Regional Chairman (Gujarat Region) of The Gems & Jewellery Export Promotion Council (GJEPC) of India for the 3rd term. He is also the Director on the Board of the Gem & Jewellery Skill Council of India (GJSCI)...

20 july 2020

GJEPC will focus on demand generation for diamonds and jewellery in the next two years

Mr. Vipul P Shah, Vice Chairman, GJEPC and also CEO & Managing Director of Asian Star Co. Ltd. has a rich experience in the diamond industry. His business acumen and professional conduct have contributed significantly in transforming a diamond manufacturing...

13 july 2020

The need for significant capital investments will be the main trend in the diamond mining industry in 2021-2030

The prospects of the diamond industry in the post-crisis period are discussed by the Rough&Polished correspondent with Sergey Mityukhin, Candidate of Geological and Mineralogical Sciences, Honored Geologist of the Russian Federation.

06 july 2020

De Beers Q2 output halves as Covid-19 wreaks havoc

17 july 2020
de_beers_logo.pngDe Beers’ second quarter rough diamond production has dropped by more than half primarily due to the Covid-19 lockdowns in southern Africa, according to Anglo American. 
The diamond group, which is 85%-owned by Anglo, registered a 54% drop in output to 3.5 million carats compared to 7,7 million carats, a year earlier. 
Botswana production eased by 68% to 1.8 million carats, mainly due to a nationwide lockdown from 2 April to 18 May and the implementation of Covid-19 measures to safeguard the workforce. However, operations resumed from mid-May, with production targeted at levels to meet the lower demand.
In Namibia, production jumped by 7% to 400 000 carats as the Mafuta crawler vessel was under planned maintenance in the comparative quarter.
“With targeted regional lockdowns in Namibia in response to Covid-19, marine operations implemented measures to enable operational continuity while safeguarding the workforce,” said Anglo.
“This more than offset the decrease in production from Covid-19 at the land operations.”
South African production decreased by 3% to 600 000 carats, again due to Covid-19 measures.  
However, the production shutdown in South Africa was partly offset by higher grades from the open pit material prior to transition to the underground. 
Anglo said production in Canada dropped by 27% to 800 000 carats, primarily due to Victor reaching the end of its life in the second quarter of 2019.
Production at Gahcho Kué also decreased by 11% to 800 000 carats due to Covid-19 measures.
Meanwhile, Anglo said demand for rough diamonds during the second quarter was heavily impacted by a combination of Covid-19 restrictions impacting consumer demand and access to southern Africa, as well as severely limited midstream cutting and polishing capacity due to lockdowns, particularly in India.  
De Beers’ rough diamond sales totaled 300 000 carats compared with 9 million carats, a year earlier.
“The third Sight of 2020 was cancelled due to Covid-19-related travel restrictions and, in response to the unprecedented industry conditions, De Beers also offered Sightholders the option to defer up to 100% of their allocations at the fourth and fifth Sights,” it said.
Rough diamond consolidated sales in the second quarter also eased to $56 million compared with $1.3 billion in the comparative period last year, driven by lower volumes and prices.
Anglo said production guidance remains unchanged at between 25 and 27 million carats, subject to continuous review based on the disruptions related to Covid-19 as well as the timing and scale of the recovery in demand.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished