Debswana H1 Sales Drop 49,2%

Reuters reports that the 50/50 Government of Botswana and De Beers owned mining entity Debswana has seen sales nearly halved in the first half of this year, selling US$1.29bn compared to US$2.54bn last year. Currently, the company sells 75% of its production via De Beers, the remainder is allocated to Okavango Diamond Company (ODC). Under the new contract, ODC's share is set to be increased to 50% of Debswana's production by the end of the 10-year agreement. The sharp decrease in sales, reflecting a major downturn in the global diamond market, is a massive blow to the country's financial situation, in which diamonds account for roughly 40% in revenues. Earlier this month, De Beers, reporting a 21% decrease in sales revenues across operations, revised its production guidance down to 23-26m ct from 26-29m ct. 

Photo credit: Debswana