Debswana Diamond Sales Plummet Amid Global Market Downturn

Sales of rough diamonds at Debswana Diamond Company plummeted 49.2% in the first half of 2024, driven by a continuing downturn in the global diamond market. Debswana, co-owned by the Botswana government and De Beers, saw sales drop significantly as Botswana aims to increase its revenues from diamond resources.

Sales of rough diamonds at Debswana Diamond Company experienced a drastic fall of 49.2% in the first half of 2024, according to data released by the Botswana central bank late on Wednesday. The decline is attributed to the ongoing downturn in the global diamond market.

Equally owned by the Botswana government and Anglo American Plc's De Beers, Debswana sells 75% of its output to De Beers, with the remaining share taken up by the state-owned Okavango Diamond Company (ODC). Last June, Botswana and De Beers agreed on a new ten-year diamond sales deal, aiming to gradually increase ODC's share of Debswana's output from 30% to 50% by the end of the contract, enhancing Botswana's revenue from its resources.

During the first half of the year, Debswana sold diamonds worth $1.29 billion, a significant drop from the $2.54 billion in the same period last year. In local currency, sales fell 47.3% to 17.555 billion pula. Meanwhile, Anglo American, planning to divest from De Beers, cut diamond production by 19% in the first six months of the year and revised its output guidance down to 23-26 million carats from 26-29 million.

(With inputs from agencies.)