JOHANNESBURG (miningweekly.com) – India’s demonetisation programme has contributed to a “temporary slowdown” in De Beers’ rough diamond sales for the tenth sales cycle.
In November, India announced that it would scrap its existing 500 and 1 000 rupee banknotes in a bid to crack down on black market activities. Citizens were given 50 days to exchange 500 and 1 000 rupee banknotes for new 500 rupee or 2 000 rupee banknotes or deposit the money into bank accounts.
The 500 and 1 000 rupee notes are said to represent about 85% of cash trade in the country and the programme has, therefore, had a significant impact on commerce in the country, particularly in rural regions.
The latest sales cycle generated revenues of $418-million, $58-million lower than the $476-million generated in the ninth sales cycle and the lowest sales for this year.
Sales were, however, higher than the $248-million generated in the tenth sales cycle of 2015.
De Beers CEO Bruce Cleaver on Tuesday assured shareholders that the company continued to see good demand for its rough diamonds.
“While the trade in lower-value rough diamonds is experiencing a temporary slowdown as a result of the demonetisation programme in India, demand across the rest of the product mix continued to be healthy and overall sales remained in line with seasonal expectations,” he stated.