Production at major diamantaires De Beers Group and Rio Tinto were down in the second quarter of 2024 mainly due to a combination of market uncertainties and operational setbacks.

De Beers said rough diamond production during the period in review dipped by 15 per cent to 6.4 million carats, reflecting a previously set lower production guidance in response to higher-than-normal midstream inventory levels and expectations of slow recovery in demand.

Meanwhile, first-half results showed a 19 per cent decrease to 13.3 million carats.

Demand for rough diamonds recovered slightly at the start of 2024 following the lifting of a voluntary moratorium on rough diamond imports into India in late 2023, and improved yearend demand for diamond jewellery in the US, noted De Beers.

“However, with midstream polished inventories remaining higher than normal and continued cautious restocking from retailers, demand for rough diamonds deteriorated in the second quarter of the year. Market conditions are expected to reflect a protracted recovery in demand,” added De Beers.

Rough diamond sales in Q2 2024 totalled 7.8 million carats from three Sights, compared with 7.6 million carats from two Sights in Q2 2023, and 4.9 million carats from two Sights in Q1 2024.

Consolidated average realised price in H1 2024 remained broadly flat at US$164 per carat, reflecting a larger proportion of higher-value rough diamonds being sold. De Beers also announced that it will stop announcing results of rough diamond Sights moving forward. Reports will instead be done quarterly. Production guidance for 2024 is unchanged at 26 to 29 million carats.

Production could dip further to manage working capital and preserve cash due to a supply bottleneck in the midstream and expectations of slower market recovery.

Rio Tinto, meanwhile, said second-quarter production at Diavik diamond mine fell 28 per cent to 702,000 carats as operations were impacted by a tragic plane crash earlier in the year as well as cessation of A21 open pit mining in the third quarter of 2023. First-half results were down 25 per cent to 1.44 million carats.