Global Diamond Production Continues to Decline
Rio Tinto's Rough Output -37%
Rio Tinto’s total rough diamond output declined 37% year on year to 2.841 million carats during the fourth quarter that ended on December 31. The company attributed the sharp reduction in output to a maintenance shutdown and the transition from open pit to underground mining at its Argyle mine in Australia, and a shift toward processing lower-grade ore at its Diavik mine in Canada.
Production at Argyle fell 43% to 1.813 million carats during the quarter. Rio Tinto’s share from Diavik fell 25% to 927,000 carats. The company’s 78% share of output from the Murowa mine in Zimbabwe fell 4% to 101,000 carats. For the calendar year, Rio Tinto’s annual rough diamond production dropped 14% to 13.872 million carats.
Diavik Production -25%
The Diavik diamond mine's production dropped 25% year on year to 1.54 million carats in the fourth quarter that ended on December 31. Diamond recovery weakened as a result of lower realized grades in all three ore bodies at Diavik and a higher proportion of the lower grade from A154 North. A new mine plan and budget for calendar 2015 has been approved by both parties. Diavik is expected to produce 6.7 million carats this year. Mining activity will be exclusively underground.
ALROSA Production down 2%
ALROSA's diamond production fell 2% year on year to 36.21 million carats in 2014. ALROSA noted that its rough diamond prices rose 7% on average during the year. Total sales rose 8.3% year on year to $5.05 billion, with $4.9 billion in rough diamond sales. Sales volume is expected to grow 1% to 40 million carats, with 2 million carats being sold out of existing inventory in 2015.
De Beers Production down 8%
De Beers rough diamond production fell 8% year on year to 8.366 million carats during the fourth quarter of 2014. Production during the quarter at Debswana, De Beers Botswana subsidiary, fell 6% to 5.989 million carats across the Orapa, Jwaneng, Damtshaa and Letlhakane mines. De Beers Canada saw production decline by 18% to 479,000 carats from the Snap Lake and Victor mines. Production from De Beers Consolidated Mines (DBCM) in South Africa dropped 19% to 1.402 million carats from the Kimberley, Venetia and Voorspoed mines.
Petra Diamonds also experiences production declines
Petra Diamonds' production fell 2% year on year to 1.601 million carats during the first half that ended on December 31.. Company revenue rose 16% to $214.8 million, boosted by $38.7 million in proceeds from two sales of large and exceptional diamonds. The average carat price during the period rose 18%.
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