GOLDNET.MARKET - “We want and are working to provide business with the opportunity to develop a lot of activity areas”

Today, almost all jewellery companies have their own wholesale websites, online stores, and social media pages. But a year ago, GOLDNET.MARKET, the first jewellery wholesale marketplace appeared in Russia, a new effective tool for the jewellery market...

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Platinum’s rare nature gives it additional value and appeal

Huw Daniel is the CEO of Platinum Guild International, overseeing market development activities in China, Japan, India and the USA, on behalf of the platinum producers of South Africa. Before taking up this role in 2015, Huw ran PGI USA for 12 years...

13 september 2021

Marco Carniello: We want to continue to be the engine boosting the jewellery industry

Italian Exhibition Group (IEG) is a leader in Italy in the organisation of trade fairs and one of the main operators in the trade fair and conference sector at European level, with structures in Rimini and Vicenza, as well as further sites in...

06 september 2021

There is a significant need for smart and technological financial solutions in the diamond industry

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30 august 2021

The future for synthetics lies in that it has become possible to grow a stone you want and make what you want out of it

Alex Popov, President of the Moscow Diamond Exchange and head of the Âme jewelry brand, which uses lab-grown diamonds to produce jewelry, sat for an interview with Rough&Polished sharing his views on the coexistence of natural and man-made diamonds in...

23 august 2021

Debswana to Sell 18M Carats in 2009

21 april 2009

Debswana will cut production to less than half its usual level this year in a bid to keep the company profitable through to 2010, after which it expects a recovery in diamond demand, the company announced this week. The decision to cut production by over 60 percent was announced as the company resumed production at its three mines on Wednesday, with 5,800 workers returning to work, RAPAPORT reported citing Mmegi.
The mines have been closed since February in an attempt to save cash by reducing production costs. Production has now resumed at the Orapa, Letlhakane and Jwaneng mines, while operations at the fourth and smallest mine, Damtshaa, and at the Orapa No. 2 plant will remain suspended until the end of 2009 because demand is expected to be depressed for much of this year.
In an interview with Business Week, Esther Kanaimba, Debswana group corporate affairs manager, said production for this year would be in the region of 15 million carats. "In the past few years, we have been producing just over 30 million carats a year, and this year we will produce just under half of that. Our production will depend on the demand.
"If there are indications that demand will improve quickly, then we will increase production. But as it stands now, Diamond Trading Company (DTC) Botswana has indicated that they might only be able to sell between 18 million carats and 20 million carats this year. Hence our decision to cut production to such levels, as we also have some inventory left from the bad sales in December and November last year.”
Market sources speculated early this year that Debswana would cut its production to 13 million carats in 2009, a 62 percent decline from last year. Late in 2008, as the demand for diamonds sunk to its lowest, Debswana forecast that it would only cut production by 20 percent in 2009. Commenting on the amount that the company saved during the shutdown of the mines, Kanaimba was again reluctant to give absolute figures, but said, "The company feels good about the amount of money that [we] have managed to save and it will go a long way in sustaining company operation during this challenging period. Debswana realized substantial savings from the two shutdowns in December-January and February-April, which made much-needed contributions to the company's bottom line,” she said.
However, De Beers, which is a 50 percent shareholder in Debswana, has announced it will cut production at its mines this year to save $1.5 billion (BWP 11.3 billion) in operating costs. In line with the De Beers Group's stated policy, other mines in Namibia, South Africa and Canada are cutting down on production in a bid to avoid stockpiling of rough.
"During the suspension of the operations, Debswana carried out maintenance work on its major assets in readiness for the eventual upturn in the market," Kanaimba said. At the time that it suspended operations, the company was carrying uneconomic quantities of inventory occasioned by very low sales of the diamonds produced during the fourth quarter of 2008. Debswana "was therefore able to continue to sell diamonds during the suspension of operations to meet DTC demand," Kanaimba explained in a statement.
The statement further added that the company and the Botswana Mineworkers Union had agreed to strategies, including redeployment and voluntary suspension, to mitigate the impact of the economic crisis on its employees, who have been affected by the shutdowns. "These strategies include redeployment and voluntary separation."