De Beers today announced that its total production of rough diamonds for the year 2018 had risen by 6% to 35.2 million carats (2017: 33.5 mn cts), even as rough diamond sales declined by 4% to 33.7 mn cts (31.7 mn cts on a consolidated bases) as compared to 35.1 mn cts (33.1 mn cts on a consolidated bases) in 2017.

The mining giant said that the rise in production was due to a planned increase at Orapa mine, but added that its total figure for the year was still in the lower half of the production guidance range of 35 to 36 million carats.

2018 sales volumes were also lower than production, driven by lower demand for lower value rough diamonds in the second half of 2018, De Beers said.

During the last quarter, rough diamond production increased by 12% to 9.1 million carats.

The Company also released the detailed figures for each of the countries in which it operates:

Botswana (Debswana) production increased by 15% in Q4 to 6.3 million carats. Orapa production increased by 20% to 3.6 million carats driven by planned favourable grade and higher plant utilisation. Jwaneng production increased by 9% following an increase in tonnes treated. For 2018, Botswana production rose to 24.1 mn cts, or 6% above the 22.7 mn cts produced in 2017.

Namibia (Namdeb Holdings) production increased by 3% to 0.5 million carats, driven by the Mafuta crawler vessel at Debmarine Namibia spending fewer days in port. This was partly offset by the land operations following the transition of Elizabeth Bay to care and maintenance. For the year as a whole, Namibia production rose 11% to 2.0 mn cts from 1.8 mn cts a year earlier.

South Africa (DBCM) production increased by 7% to 1.2 million carats as a result of planned higher grade ore at Venetia. For 2018, South Africa production dropped 10% to 4.7 mn cts from 5.21 mn cts in 2017.

Canada production increased by 5% to 1.0 million carats due to higher grades at Victor as it reaches the end of its life. This was partially offset by planned lower grades at Gahcho Kué. In 2018, production jumped by 19% from 3.76 mn cts in 2017 to 4.48 mn cts in 2018.

Rough diamond sales volumes for Q4 totalled 9.9 million carats (9.3 million carats on a consolidated basis3) from three sales cycles, compared with 8.2 million carats (7.5 million carats on a consolidated basis3) from the same number of sales cycles during the equivalent period in 2017. Fourth quarter rough sales revenues increased year on year as the re-phased allocations of some lower value rough diamonds from Sight 7 (in September) were realised in Sights 9 and 10.

The consolidated average realised price of US$ 171/ct for 2018 was 6% higher (2017: US$ 162/ct), due to a lower proportion of lower value rough diamonds sold in 2018.

As announced earlier, De Beers reiterated that 2019 production guidance stood at 31 to 33 million carats, subject to trading conditions. The lower production is driven by the process of exiting from the Venetia open pit with the underground becoming the principal source of ore from 2023. Associated with this, an increased proportion of production in 2019 is expected to come from De Beers Group’s joint venture partners, a proportion of which generates a trading margin, which is lower than the mining margin generated from own mined production.