International diamond mining corporation De Beers said it has cut diamond production in 2024 by 22% to 24.712 million carats.
"Rough diamond production was reduced by 22% to 24.7 million carats (2023: 31.9 million carats), reflecting a proactive production response to a prolonged period of lower demand and higher than normal levels of inventory in the midstream," the company said in a statement on Thursday.
The statement noted that in Botswana, production fell by 27% to 17.935 million carats; in Namibia, production decreased by 4% to 2.234 million carats; in Canada, production decreased by 16% to 2.377 million carats; while in South Africa, it increased by 8% to 2.166 million carats. Diamond sales last year totaled 17.883 million carats, down 27.5%.
"Difficult trading conditions resulted in a year-on-year reduction in revenue of 23% with total revenue of $3.3 billion (2023: $4.3 billion) … The average realized price, however, increased marginally by 3% to $152/ct (2023: $147/ct)," the statement read.
The company believes that market conditions will remain challenging in the short term this year. In the medium term, the company expects lower production, stabilizing demand in China, and normalization of inventory levels to lead to a modest increase in rough diamond prices, while long-term expectations remain favorable.