Botswana’s Diamond Exports Climb 38.5% in 2010

(IDEX Online News) - Botswana exported $149.6 million worth of diamonds in December 2010, bringing the country’s annual diamond exports total to $3.02 billion at current exchange rates, rising 38.5 percent as the global diamond industry recovered and prices rebounded.

Botswana, very much dependent on its diamond resources, suffered from the global economic crisis and the drop in demand for luxury items in general and diamonds in particular. As global demand improved, the country’s diamond exports were nearing pre-crisis levels.

The 2010 exports follow a sharp drop in exports in 2009 as the country’s diamond production was drastically curtailed. However, while last year’s exports are a clear revival, they are still below the export levels in 2005-2008.

De Beers, which is the main diamond miner in Botswana, plans to increase production in 2011, probably aiming for 40 million carats. In 2010, the company is believed to have produced around 34 million carats.

The December export figures, released by Bank of Botswana, are low. The figures represent a 25.6 percent year-over-year decline and a 56.9 percent decline from the preceding month, November.

Source: Bank of Botswana, Botswana monthly central bank report