Debswana production jumps 10 percent
Brian Benza | Friday July 25, 2014 15:02
Production figures released by parent company Anglo American show that Debswana produced 12.02 million carats in the first half of the year from 10.9 million in the corresponding period last year.
In the period Orapa recorded the highest output ramp of 28 percent in the Debswana stable while Jwaneng production fell by six percent to 4.9 million in the half. On a quarterly basis, production was flat in the second three month of the year falling by a marginally two percent to 6.26 million as output from flagship Jwaneng mine fell 13 percent compared to the second quarter of 2013.
“At Debswana, production benefited from improved productivity at the processing plants, together with the impact of the clean-up of the Jwaneng slope failure in 2013. This was offset by the mining of lower grade areas at Jwaneng. Operations in southern Africa were affected by high seasonal rainfall in Q1 2014, but recovered in Q2 2014, supported by initiatives implemented to better cope with these conditions,” said Anglo American.
De Beers, which traditionally gets about 70 percent of its output from Debswana, also ramped up output 12 percent in the first half of the year to 16 million carats in the period largely on the back increased carat production from Botswana. De Beers is 85 percent owned by Anglo American while the worlds biggest diamond-mining company by value joint equally owns Debswana with the government of Botswana. In 2013, Debswana increased production by 12 percent to 22 million carats to power parent company, De Beers’ output to a five-year high.
The company also owns diamond mines in Canada, South Africa and Namibia. Both De Beers and Debswana have not provided production forecast for this year. From a high of 34 million carats in 2007, diamond production, which contributes just fewer than 30 percent to Botswana’s GDP and 65 percent to foreign exchange receipts, has plateaued in the last few years as De Beers caps production to match market conditions.
Meanwhile, Botswana has retained its position as the global top diamond producer by value, according to annual data published by the Kimberley Process Certification Scheme this week.
In 2013, Botswana’s production rose 22 percent to $3.63 billion with the volume of its production up 13 percent to 23.19 million carats. The average price of Botswana’s rough rose 8 percent to $156.36 per carat.
Russia is ranked the second largest diamond producer by value but was by far the largest producer by volume. Russia’s production grew eight percent to $3.11 billion, with the volume of output up eight percent to 37.884 million carats. In the period, global diamond production by value rose 11 percent year on year to $14.09 billion in 2013, due mainly to an increase in the average price of rough diamonds.
The total rough exports by all Kimberley Process member states increased 11 percent to $55.59 billion.