De Beers reschedules sales amid plummeting demand

Baitshepi Sekgweng
African nations dominate the diamond production landscape

As the diamond industry faces low demand and dropping sales, De Beers has called off its August sight and rescheduled sale dates for later this year as the industry battles high inventories.

As a result, the miner has combined the August and October trading sessions into one sight that will take place in September.

This comes at the wake of a production cut in India which is estimated at 50 percent.

Therefore, the merged sight 7 and 8 will run from September 23 to 27, as according to the communication to sight holders.

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Previously, sight 7 was scheduled for August 26 to 30, while sight 8 was due to take place from October 7 to 11.

Sight 9 will occur from November 4 to 8, having previously been set for November 11 to 15.

Sight 10 will take place from December 2 to 6, instead of December 9 to 13 as planned.

The belief is that the revised scheduling will better support sight holders’ business needs as they head towards the end-of-year season.

“Following extensive discussion and feedback from sightholders, this decision has been taken to support sight holder businesses in navigating the prevailing midstream trading conditions, as well as to avoid timing issues with a UN conference set to take place in Botswana in mid-December,” read a note from De Beers to sightholders.

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Lately Okavango Diamond Company sold $55.5 million worth of rough diamonds from its August spot auction which is a decline from $66.6 million made in June which showcases a declining demand.

Meanwhile, the latest statistics from the Kimberley Process Certification Scheme (KPCS), the global authority overseeing the trade and production of diamonds, underscore Africa’s vital role in the global diamond industry.

According to the statistics, African nations dominate the diamond production landscape, with eight of the continent’s countries ranking among the top ten diamond producers worldwide.

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Botswana stands at the forefront, reinforcing its position as Africa’s leading diamond producer and securing the second spot globally, just behind Russia.

Botswana’s diamond industry continues to make a significant impact on the international stage, with a remarkable production volume of 24.5 million carats valued at $3.2 billion.

Angola shines brightly as the second-largest diamond producer in Africa, with a production volume of 9.7 million carats and a production value of $1.5 billion.

The Democratic Republic of Congo (DRC) comes in third place having produced 8.3 million carats of diamonds, with a value of $64 million, showcasing its strong presence in the industry.

Renowned for its historical significance in diamond production, South Africa ranks fourth among African countries with a production volume of 5.8 million carats and a production value exceeding $793 million, reflecting its enduring excellence in diamond mining.

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