The drop in diamond recoveries is a response to market conditions, but also a reflection of diminishing prospects for viable new mines.
Diamond miners are postponing sales and reviewing their production plans amid the weak market environment.
“We have taken the proactive decision to defer the upcoming August-September tender from our South African operations, to support steps taken by major producers to restrict supply in this weaker demand period,” Petra Diamonds said in an August 6 statement.
Yet Petra wasn’t the first mining company to withhold goods in the current sales cycle. De Beers allowed sightholders to refuse more of their allocations than usual and raised the threshold for buybacks at its July sight. It’s also combined its August and October sights into one sale, which will take place in September — just before the Diwali break.
For the rest of this article: https://rapaport.com/analysis/is-diamond-production-on-the-decline/