De Beers Output Slumps Amid Venetia Mine Transition

De Beers’ production slid 23% year on year in the third quarter as the company transitioned its Venetia deposit in South Africa to underground mining.

Total output came to 7.4 million carats for the three months ending September 30, compared to 9.6 million during the same period a year ago, De Beers said Tuesday. The miner had planned to reduce production during the move from open-pit mining as it began the underground ramp-up, it explained. Until that transition is complete, the company will only process lower-grade surface stockpiles from the site.

Production in South Africa dropped 78% to 365,000 carats for the period. Output in Botswana fell 12% to 5.8 million carats due to planned maintenance at the Orapa site, De Beers noted.

Output in Namibia — where most diamonds come from marine mining — was flat at 530,000 carats. Production in Canada slipped 9% to 676,000 carats as the miner processed lower-grade ore.

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Demand was sluggish in the third quarter, with sightholders remaining cautious due to high inventory levels in the midstream and an uncertain macroeconomic environment, De Beers said. Sales decreased to 7.4 million carats from three sights from 9.1 million carats from the same number of sights during the third quarter of 2022. The company will continue to help reestablish equilibrium in the market by providing full flexibility for rough allocations and its final two sights of the year.

De Beers expects production for the full year to reach between 30 million and 33 million carats, it added.

Main image: Rough diamonds. (Ben Perry/Armoury Films/De Beers)