Debswana said it will maintain its production plans for the year, despite the weak global demand for rough diamonds.
Botswana’s leading diamond company will keep its target of 24 million carats for the year.
“It should be noted that the De Beers Group’s production guidance for the year was initially set to be in the range of 31-33 million carats and has recently been revised down to the bottom of this range at 31 million carats,” the group’s corporate affairs manager (external communication), Agatha Sejoe was quoted as saying by BusinessWeek.
“Therefore, the production guidance for the year remains within the initially guided range.
“As such, Debswana has not changed its production plans but as always retains the flexibility to adjust production up or down as per prevailing demand conditions.”
Debswana’s maintenance of its production despite De Beers’ reduced target was due to the fact that other De Beers mines are expected to lower their production.
Sejoe, however, said Debswana was closely monitoring trends in the rough diamond market and was confident it had the plans to cope.
“We remain positive because the robust business plan that we have in place and strategic management of our operations, enable us to handle ebbs and flows in demand for rough diamonds,” she said.
The market for both rough and polished diamonds remains challenging due to an excess supply of polished diamonds and reduced credit available in the mid-stream of the supply chain. Liquidity issues and concerns over manufacturers' profitability have resulted in weaker demand, while global trade disputes and unrest are also contributing factors, resulting in lower prices for rough diamonds.