Sarah Kuijlaars has been appointed De Beers CFO, effective September 1
Diamond miner De Beers reported a 54% year-on-year decrease in production to 3.5-million carats in the second quarter of the year.
This was due to the Covid-19 lockdown measures in South Africa, Namibia, Botswana and Canada, where the miner operates.
The miner noted that, even when operations were allowed to resume, demand for rough diamonds globally remained weak.
In Botswana, production decreased by 68% year-on-year to 1.8-million carats, principally owing to a nationwide lockdown from April 2 to May 18 and the implementation of Covid-19 measures to safeguard the workforce.
Operations restarted from mid-May, with production targeted at levels to meet the lower demand.
The company’s production in Namibia increased by 7% year-on-year to 400 000 ct. De Beers explains that, notwithstanding targeted regional lockdowns in Namibia in response to Covid-19, the company’s marine operations were able to implement measures to enable operational continuity while safeguarding the workforce.
This more than offset the decrease in production through Covid-19 at the land-based operations.
South African production decreased by 3% year-on-year to 600 000 ct, mainly owing to Covid-19 measures. The production shutdown was partly offset by higher grades from the openpit material prior to the underground transition of the Venetia mine.
The company’s treatment plant in South Africa could restart in mid-April and ramped up to normal capacity by the end of April.
Production in Canada decreased by 27% to 800 000 ct, mainly owing to the Victor mine reaching the end of its operating life in the second quarter of last year.
At the company’s Gahcho Kué joint venture mine, production decreased by 11% to 800 000 ct, owing to Covid-19 measures.
De Beers commented on July 16 that, during the second quarter, demand for rough diamonds was significantly impacted on 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, owing to lockdowns, particularly in India.
Rough diamond sales for the quarter totalled 300 000 ct, or 200 000 ct on a consolidated basis, compared with nine-million carats in the second quarter of last year, or 8.3-million carats on a consolidated basis.
Therefore, rough diamond consolidated sales in the quarter under review decreased to $56-million, compared with $1.3-billion of consolidated sales reported in the prior corresponding quarter – driven by lower volume and prices.
The company’s consolidated sales volumes exclude De Beers’ joint venture partners’ 50% proportionate share of sales to entities outside the De Beers group from Diamond Trading Company Botswana and the Namibia Diamond Trading Company, which are included in total sales volumes.