De Beers is ramping up production as sanctions squeeze its main Russian rival.
The diamond miner has increased its expectation for 2022 rough diamond output to 32m to 34m carats, up from a prior range of 30m to 33m. That was despite fears that an economic downturn could hit overall global demand.
Russia is the world’s biggest producer of natural diamonds and Kremlin-owned firm Alrosa is responsible for 90 per cent of the country’s diamond mining capacity.
Sparkling: De Beers has increased its expectation for 2022 rough diamond output to 32m to 34m carats, up from a prior range of 30m to 33m
The US and the UK have both imposed sanctions on the company as a result of Vladimir Putin’s invasion of Ukraine.
De Beers, which is controlled by London-listed mining giant Anglo American and extracts the precious stones in Botswana, Canada, Namibia and South Africa, stands to shine as a result. It has also been helped by initiatives aimed to ensure that jewellery is not sourced from conflict zones.
In a production update, Anglo American said consumer demand for diamonds remained ‘robust’ in the first half of the year.
The company warned that ‘a deterioration of global macro-economic conditions and reduced consumer spending could impact demand for diamond jewellery’.
Anglo American’s update also saw it report a 9 per cent fall in overall quarterly production, mainly blamed on its copper, coal and iron ore operations. Its shares rose 0.9 per cent.
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