Anglo American Raises De Beers' Diamond Output Guidance

Mining and Exploration
12/12/2018 14:57

De Beers' parent company Anglo American has announced a slight rise in its guidance for diamond output this year to 35-36 million carats (previously 34-36 million carats), marking a rise from the 33.5 million carats recovered in 2017. They estimate a reduction in 2019 volumes down to 31-33 million carats due to declining open pit production at the Venetia mine in South Africa as it transitions underground, and the Victor mine in Canada reaching its end-of-mine-life. Thereafter, production should rise again in 2020 (to 33-35m carats, previously 32m) and 2021 (a new guidance of 35-37m carats). The underground Venetia mine is scheduled to begin production in 2022, climbing to full production in 2025. Over the course of its life, the underground mine is expected to deliver an estimated 94 million carats, extending its life to 2046.

The announcement was part of Anglo's investor update, announcing its current and projected operational and financial performance. Anglo American said its overall production will rise by more than previously expected between 2018 and 2021, while 2018 production will be 2 percent higher than its previous forecast, driven by increases in diamonds, copper and platinum group metals, while costs will be 5 percent below earlier guidance. The future increases in diamond production are based on expectations of robust consumer demand.