De Beers Diamond Production & Sales Dip in 2012

De Beers announced a drop in full year group sales of 16% to $6.1 billion over the previous year. Rough diamond sales fell 15% to $5.5 billion, from $6.5 billion in the January to December 31, 2011 period.

The decline in rough sales was largely a result of diminished demand, changing product requirements from Sightholders, and reduced availability of some goods, the diamond company said in a statement. It said sales of rough via De Beers’ auction platform decreased to $356 million in 2012, from $405 million in 2011, due to subdued buyer activity.

On the production side, it said operations continued to focus on maintenance and waste stripping backlogs in light of prevailing diamond market trends as well as operational challenges. The company’s diamond production totaled 27.9 million carats in 2012, from 31.3 million carats in 2011.

Debswana accounted for the vast bulk of its output, producing 20.2 million carats. This was 2.7 million carats lower compared to the previous year, mainly as a result of the Jwaneng Mine slope failure.

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