Anglo American Plc curbed its plan to expand diamond production over the next two years after sales slumped in 2019 amid a wider industry crisis.
Anglo’s De Beers unit will mine 1 million carats less than previously forecast in both 2020 and 2021, according to an investor presentation on Tuesday. That equates to less than 1% of global output, but slows the pace of the company’s expansion as an oversupply of rough diamonds weighs on the industry.
De Beers’s buyers have grown increasingly frustrated with the cost of rough stones as the price of polished gems slump. That’s led to wafer-thin margins and losses for some of the traders buying stones from De Beers and Russian rival Alrosa PJSC.
The crisis has spread to engulf the world’s diamond miners as well. De Beers, which dictates prices to its select group of clients, reported sales through November were more than $1.2 billion lower than the same period in 2018.
The company, which says it mines to meet demand, has responded by offering more flexibility to its customers, allowing them to reject some purchases. Last month, De Beers cut prices across the board by about 5%.
Even so, the company’s production is still set to rise to as much as 34 million carats next year, from 31 million carats in 2019.
Usher in hope and new beginnings this Akshaya Tritiya with the resilience of a Forevermark Diamond
LR Natarajan’s book ‘The 9 Nuggets of Innovation’ doles out lessons on how jewellers’ can imbibe innovation in everyday business
HRD Antwerp Authenticity Jewellery Report Launch
C Krishniah Chetty Group of Jewellers introduce CKC Live and Virtual Try-On feature for Akshaya Tritiya
This Akshaya Tritiya, Reliance Jewels wishes Good Health, Happiness and Prosperity
Under the leadership of GJEPC, Gem & Jewellery Industry voices concerns at USTR public hearing
Akshaya Tritiya 2021: Jewellers better prepared for technology enabled sales amid second wave, foresee no panic buying unlike last year
PP Jewellers by Pawan Gupta unveils Akshaya Tritiya offer
Subscribe to our newsletter and stay tuned with latest trends and updates in the “Jewellery Industry”.