De Beers Group, a prominent player in the diamond industry, faced a notable setback in its production figures for the year 2023. According to the company’s recently released fourth-quarter and year-end production report, its production experienced an 8 percent decline compared to the previous year. This downturn was primarily attributed to a significant decrease in demand for rough diamonds, coupled with ongoing construction activities at its sole operational mine in South Africa, Venetia.
In specific figures, De Beers Group recovered approximately 31.9 million carats of diamonds throughout 2023, contrasting with the 34.6 million carats retrieved in 2022. Despite this decline, the production fell within the company’s projected range of 30 million to 33 million carats for the year.
Venetia mine, a critical asset for De Beers, witnessed a substantial drop in production by 64 percent, yielding only 2 million carats during the year. Operations at the open-pit section of the mine halted in December 2022, leaving De Beers to process lower-grade surface stockpiles while progressing with the construction of the underground segment.
Signs of progress emerged as De Beers announced the recovery of initial diamonds from the $2.2 billion underground expansion of the Venetia mine in July. With the project nearing 70 percent completion, the two underground ore bodies are projected to collectively contribute 4.5 million to 5.5 million carats annually upon full operation.
Meanwhile, in Botswana, the primary source of 77 percent of De Beers’ diamond output, production experienced a modest 2 percent increase, reaching 24.7 million carats in 2023. Namibia reported a 9 percent rise in production to 2.3 million carats, while Canada maintained a steady output of 2.8 million carats from the Gahcho Kué mine, a joint venture between De Beers and Mountain Province Diamonds.
The fourth quarter of 2023 saw a 3 percent decline in production, totaling 7.9 million carats. Despite a 6 percent increase in Botswana’s production, driven by heightened activities at the Orapa mine, it failed to compensate for the notable decrease observed in South Africa.
Looking ahead to 2024, De Beers Group maintains its production guidance within the range of 29 million to 32 million carats. However, the company remains open to adjusting its production levels in response to market dynamics and demand fluctuations.
