Anglo American Cuts Diamond Output Due To Glut

Anglo American Plc has revised its diamond production target for the year downward as the industry grapples with excess inventory following a disastrous 2023, reported Thomas Biesheuvel for Bloomberg News.

Diamond production nearly came to a complete standstill in the second half of last year as Anglo-owned De Beers and Alrosa PJSC almost halted supplies in a desperate attempt to stem a slump in prices. I Photo: Anglo American Facebook

The sector nearly came to a complete standstill in the second half of last year as Anglo-owned De Beers and Alrosa PJSC almost halted supplies in a desperate attempt to stem a slump in prices.

While these efforts helped the market to pick up slightly, they led to soaring stock levels at the two biggest diamond miners.

Even as demand slowly recovers this year, clearing that inventory is taking time.

Anglo has announced that its De Beers unit will now aim to produce 26 million to 29 million carats this year, down from a previous target of as much as 32 million carats. The mining company maintained the rest of its production goals.

The more stable output will come as a relief after the company startled the market late last year by announcing deep production cuts across its portfolio to reduce costs and address operational challenges.