GABORONE, Nov 30 (Reuters) - Sales of rough diamonds by
Debswana Diamond Company jumped 73% in the first nine months of
2021, statistics released by the Bank of Botswana showed on
Tuesday, driven by the reopening of U.S. and China's consumer
markets.
Debswana, a joint venture between Anglo American
business De Beers and the Botswana government, sells 75% of its
output to De Beers, with the balance taken up by state-owned
Okavango Diamond Company.
Debswana sales fell by 30% in 2020 as the COVID-19 pandemic
hit demand while global travel restrictions hurt trading.
Botswana closed its borders for eight months last year in an
effort to curb the spread of the virus, effectively locking out
foreign buyers from centres such as Mumbai, Antwerp and China,
who traditionally travel to Gaborone 10 times a year to view and
buy diamonds from De Beers.
Since mid-2020 De Beers has shifted some of its rough
viewings to places closer to international diamond centres, such
as Antwerp, to cater for customers unable to travel to Gaborone.
According to data published by the central bank, exports of
diamonds from Debswana stood at $2.589 billion in the first nine
months of the year compared with $1.498 billion in the same
period last year.
Botswana makes about 30% of its revenue and 70% of its
foreign exchange earnings from diamonds. While it has taken
measures to diversify its dependence on a single commodity,
diamond sales continue to be its main revenue earner.
De Beers' sales softened by 4% in the current sales period,
which ended last week, as Indian manufacturers closed factories
ahead of the Diwali festival, though the company said diamond
jewellery demand remained strong in the United States.
(Reporting by Brian Benza
Editing by Promit Mukherjee and David Goodman
)
Anglo American (AAL)
