De Beers Group, one of the world’s largest diamond producers, reported a 15 percent drop in diamond production in the second quarter of 2024. This decline is in line with the company’s lowered annual production guidance announced earlier this year.
The miner’s second-quarter report, released on July 18, revealed that production fell to 6.4 million carats from 7.6 million carats in the same period last year. The drop was particularly significant in Botswana, where production decreased by 19 percent to 4.7 million carats.
The decrease in production at the Jwaneng mine in Botswana was attributed to short-term changes in the plant feed mix to work through existing surface stockpiles. Unfortunately, the mine also experienced a worker fatality in June, prompting an ongoing investigation by Debswana, the joint venture between De Beers and the Botswana government.
While production in Namibia and Canada experienced decreases, production in South Africa increased by 8 percent, driven by the processing of higher-grade underground ore at the Venetia mine. Despite these production challenges, De Beers reported an increase in rough diamond sales in the second quarter.
Looking ahead, De Beers is working to offload non-core assets as part of its “Origins” strategy to reduce operating costs. The company recently announced the sale of a royalty right for an iron ore deposit in Australia for $150 million, demonstrating its commitment to streamlining the business and focusing on core diamond production.
