De Beers Diamond Production Plunges 91% in Q1

De Beers’ diamond production came to a near halt in the first quarter of the year, dropping to just 1.082 million carats, a 90.8 percent year-over-year plunge. The company temporarily halted production at most of its diamond mines in December 2008, and currently operates many of them at a reduced production level.

Compared to the preceding December 2008 quarter, De Beers’ diamond production declined 90 percent.

Second quarter production will increase from the first quarter of the year as the major Debswana mines in Botswana, which accounted for over 65 percent of total De Beers production in 2008, have commenced production again, according to De Beers majority shareholder Anglo American.

Nevertheless, year-over-year, second quarter production is still expected to be low.