Debswana production down 12%

SHARE   |   Monday, 25 July 2016   |   By Kabelo Adamson
Mark Cutifani, CEO of Anglo American Mark Cutifani, CEO of Anglo American

Production at Debswana has decreased by 12 percent during the second quarter of 2016 to 5.2 million carats with Orapa reduced by 27 percent while another of Debswana mines, Damtshaa has been placed under care and maintenance. De Beers’ parent company, Anglo American reported this week that diamond production at De Beers decreased by 19 percent to 6.4 million carats which is a reflection of the decision to reduce production in response to the prevailing trading conditions in H2 2015.

De Beers also saw production decrease across its diamond operations, including in South Africa where output went down by 26 percent to 0.8 million carats while in Namibia production decreased by 31 percent to 0.3 million carats. The mining company’s full year production is forecast between 26-28 million carats which is subject to trading conditions. Mark Cutifani, CEO of Anglo American said: “We continue to demonstrate discipline in our key markets, particularly diamonds and platinum, in line with our focus on higher margin and lower cost assets. The decisive actions taken by De Beers last year led to more normal trading conditions in the first half of 2016 with sales volumes increasing as a result, but we maintain a cautious outlook.”

Consolidated rough diamonds sales are in Q2 2016 are reported were 9.6 million carats (from three Sights) compared with 4.9 million carats (from two Sights) in Q2 2015. part from the addition Sight in 2016, the increase is reported to reflect higher mainstream restocking from lower inventory levels in 2015. onsolidates sales volumes for H1 2016 were 17.2 million carats, compared with 13.3 million carats for H1 2015. The De Beers rough price index was on average 16% lower in H1 2016 compared with H1 2015. The average realised price at $177/ct was 14% lower than H1 2015.