De Beers Considering Production Reduction

De Beers is considering reducing its diamond production. The main reason is deteriorating market conditions resulting from weak consumer demand in China. 

“With higher-than-normal levels of inventory remaining in the midstream and an expectation for a protracted recovery, we are actively assessing options with our partners to further reduce production to manage our working capital and preserve cash,” the company said Thursday.

During the second quarter, De Beers' overall production fell by 15%, due in part to work on the vessels operating at the Debmarine Project in Namibia and as De Beers reduced production at the Jawaneng mine to eliminate existing lower-grade inventories. This decline was partially offset by an 8% increase in production at the Venetia mine in South Africa.

Picture Credit: De Beers