Ghaghoo production halved on soft diamond prices

In a trading update released on Wednesday, promoters of the mine, Gem Diamonds said they will downsize output, in order to preserve its balance sheet until prices for diamonds have improved.

Ghaghoo had an original production target of 720,000 tonnes per annum, but will now cut it to 300,000 tonnes. Prices for diamonds mined from Ghaghoo averaged around $150 per carat at the firm’s latest round of sales, a decline on the average $165 per carat and $210 per carat fetched in the firm’s two previous sales.