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.

The production holidays and reducing shifts worked came in response to low market demand for rough diamonds on the heels of the economic fallout.

The first quarter production figure, reported Thursday by majority shareholder Anglo American, come therefore as no surprise. Compared to the preceding December 2008 quarter, De Beers’ diamond production declined 90 percent.

Second quarter production will increase from the first as the major Debswana mines, which accounted for over 65 percent of total De Beers production in 2008, are have commencing production, according to Anglo.

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