The global diamond industry continues to recover from the impacts of the Covid-19 pandemic during 2021, as a result of the cooling of economies and the adaptation of national markets.
In the first half of the current year, according to the De Beers report, consumer sales of diamond jewelry in the United States of America and China recorded positive growth, not only in the revenues affected by Covid-19 in 2020, but also compared to 2019 before the start of the pandemic. Global consumer markets initially saw a less pronounced recovery due to the uneven timing of the pandemic’s impacts across the world, but the second half of 2021 saw a more positive recovery trend across the international diamond value chain. In Southern Africa, despite operational issues and heavy rains, in the first quarter of 2021 production was increased to meet stronger demand for rough diamonds.
In Angola, for example, close to 9 million carats of the gemstone were produced in 2021, earning the Government a total of US$1.7 billion. With the recovery of the market, the country expects to produce 10 million carats in the current year and a turnover relatively higher than in 2021, in which exports earned the state diamond company around US$1.7 billion. The intention is that at least 20 percent of the average annual local production is processed in terms of cutting in Angola. In Botswana, production was 35 percent higher at 22.3 million carats (2020: 16.6 million carats) as production increased in response to stronger prevailing demand. Production at Jwaneng increased 71 percent to 12.9 million carats (2020: 7.5 million carats) due to planned processing of higher grade ore and as a result of Covid-19-related lockdowns in the previous year.
Production at Orapa increased marginally by 5% to 9.4 million carats (2020: 9.0 million carats), despite the impact of heavy rains earlier in the year and the planned closure of Plant 1 in late 2020. In Namibia, production came in line at 1.5 million carats (2020: 1.4 million carats), reflecting an increase in the remobilization of most vessels towards the end of 2020, partially offset by planned maintenance. In South Africa, production rose 41 percent to 5.3 million carats (2020: 3.8 million carats), due to the impact of Covid-19 lockdowns in the first half of 2020 and planned processing. of higher grade ore from the final cut of the Venetia open pit. In Canada, production was marginally lower by 3.2 million carats (2020: 3.3 million carats), mainly due to a temporary Covid-19-related shutdown in the first quarter of 2021. Continued rise in consumer demand has led to strong growth rates in US sales, with holiday season departures increasing by about a third from 2020.
