Pro­duc­tion set to ex­ceed fore­cast

The Star Early Edition - - COMPANIES & NEWS -

DE BEERS, the world’s big­gest di­a­mond pro­ducer by value, said its unit in Botswana was on track this year to pro­duce the most since 2014, ex­ceed­ing its an­nual pro­duc­tion fore­cast. It is likely that Deb­swana, as the lo­cal di­vi­sion is known, will pro­duce 22 mil­lion carats this year, ex­ceed­ing its tar­get of 20.5m carats, Gareth Mostyn, De Beers’s ex­ec­u­tive head of strat­egy, said in an in­ter­view on July 27 in Gaborone. De Beers, which also has op­er­a­tions in Canada, Namibia and South Africa, kept its to­tal fore­cast for the year at 31m to 33m carats. Global di­a­mond sales edged up 0.3 per­cent last year to $80 bil­lion (R1 tril­lion) as ris­ing de­mand from the US, which ac­counts for more than half of the world’s pur­chases, off­set de­clines in In­dia and China, ac­cord­ing to a De Beers re­port in June. The An­glo Amer­i­can unit is fore­cast­ing more de­mand from Asia this year, lead­ing to “mar­ginal” growth. “The mar­ket has been look­ing quite ro­bust, and we have de­cided to pro­duce in or­der to sup­ply that,” Mostyn said. Botswana pro­duc­tion has been helped by the re­turn of a pro­cess­ing plant at Orapa, which was par­tially idled in De­cem­ber 2015 be­cause of weak de­mand. – Bloomberg

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.