Anglo's De Beers division sees huge slide in diamond sales

Mining giant Anglo American saw another big slide in diamond sales at its latest tender of De Beers, blaming continuing macroeconomic "challenges".

De Beers sold just $80m of rough diamonds through Sightholder sales and auctions in its ninth sales cycle of the year, down from $200m at the previous tender and $454m in the ninth tender of 2022.

"Macro-economic challenges continue to affect the diamond sector," said De Beers chief executive Al Cook, citing a slow retail recovery in China and the recently announced voluntary moratorium by major producers to curb supply to the Indian market, which is hoped to bring some stability and support to prices.

Specifically, Cook said the Indian moratorium will see "extended Diwali holidays and factory closures in the world's largest diamond cutting centre".

"In recognition of these conditions, De Beers continued with reduced rough diamond availability in the ninth sales cycle of 2023. De Beers maintained support for its Sightholders with full purchase flexibility as the midstream re-establishes an equilibrium between wholesale supply and demand," Cook said.

De Beers operates diamond mines across Botswana, Canada, Namibia and South Africa, and sells 90% of its stones by value through Sightholder sales. The sales events, known as Sights, are held 10 times a year. The other 10% of its diamonds are sold via auctions.