(IDEX Online News) – Anglo American today (Friday) announced that De Beers’ full year production for 2014 increased 5 percent to 32.6 million carats, up from 31.2 million carats in 2013.

 

Total sales rose 11 percent to $7.1 billion, with rough diamond sales up 12 percent to $6.5 billion. Higher rough diamond revenue was driven principally by a 12 percent increase in consolidated sales volumes to 32.7 million carats.

 

The company said the average realized diamond prices were in line with 2013 at $198/carat, driven by 5 percent higher average rough price index in 2014, offset by a marginally lower product mix.

 

Debswana performed strongly, although its results were partly offset by slightly lower production at Snap Lake and Kimberley.

 

Efficiency increased at Debswana’s processing plants following operational improvement initiatives, leading to production of 24.2 million carats (Orapa 12.9 million and Jwaneng 11.3 million). Anglo American said performance was enhanced by recovery from the carry-over effects of the Jwaneng slope failure clean-up as well as the Orapa No. 1 plant maintenance stoppage in 2013.

 

Jwaneng Cut-8 waste mining is progressing well, with just over 50 percent of the 500 million tons of waste stripping required to expose the ore now complete. During 2018, Cut-8 will become the main source of ore for Jwaneng and extend the life of the mine to at least 2033, providing access to an estimated 91 million tons of ore, containing approximately 110 million carats.

 

Production was marginally higher in Namibia at 1.9 million carats (Namdeb [land operations] 0.6 million and Debmarine Namibia 1.3 million), driven by strong operational improvement by the MV Mafuta vessel.

 

Namdeb production was broadly in line with the previous year, despite a 19-day strike in the third quarter. Namdeb Holdings has received a 15-year license extension for both land and sea operations to 2035.

 

Output at De Beers’ South African operations decreased 2 percent to 4.6 million carats (Venetia 3.2 million, Voorspoed 0.7 million and Kimberley 0.7 million), principally because of lower grades at Kimberley.

 

In Canada, production was slightly lower at 1.8 million carats (Snap Lake 1.2 million and Victor 0.6 million). Snap Lane’s production declined 0.1 million carats due to flooding, forest fire smoke protocols and reviewing and implementing revised ground support standards.

 

Looking forward, diamond production for 2015 is forecast at 32 to 34 million carats.

 

Downstream, Forevermark experienced strong growth in 2014, with retail outlets up by 20 percent. The brand is now available in more than 1,500 outlets in 34 markets.

 

In 2014, De Beers Diamond Jewellers opened a new store in Selfridges in London and a concession in Saks Fifth Avenue, New York, increasing the number of De Beers stores worldwide to 35 in 12 key consumer markets globally.  

 

Anglo American said consumer demand for diamond jewelry showed positive growth in local currency terms in all the main markets in 2014.

 

Sales were especially healthy in the US, owing to the ongoing recovery in the economy. Demand for diamond jewelry continued in China, but at modest levels that reflect a slowing in that country’s economy. Improving macro-economic conditions in India are leading to hopes that demand will increase in 2015.