Economic Bulletin

• Polished diamond exports fell 6 percent to $2.23 billion.
• Rough diamond imports jumped 10 percent year on year to $53 million.
• Rough diamond exports fell 30 percent to $28 million.

Belgium’s Polished Exports Decline
   Belgium’s polished diamond exports fell 20 percent year on year to $1.25 billion, according to the Antwerp World Diamond Centre (AWDC). By volume, polished diamond exports dropped 23 percent to 702,220 carats as the average price increased 4 percent to $1,782.78 per carat.

• Polished diamond imports declined by 20 percent to $942.7 million.
• Rough diamond imports fell 45 percent to $785 million during the month.
• Rough diamond exports dropped 34 percent to $1.23 billion.

Japan’s Polished Imports Jump
   Japan’s polished diamond imports for the month of June 2012 rose 28 percent year on year to $91 million. The country imported 190,672 carats, an increase of 43 percent from one year earlier.
  For the first six months of the year, Japan’s polished diamond imports have risen nearly 20 percent to $440 million. However, the volume of polished carats imported has fallen 8 percent year on year to 918,972.

Bostwana’s Exports Slump
   Botswana’s diamond exports fell 51 percent year on year to $352.6 million in June 2012, according to data released by the Bank of Botswana (BOB). During the first six months of the year, the country’s diamond exports declined by 29 percent to $1.89 billion. Exports during the second quarter dropped 41 percent to $889.5 million.
   The bank’s data is a representative sample of the country’s full diamond trade and is sourced from the Diamond Trading Company Botswana (DTCB), Leo Schachter Botswana, Teemane Manufacturing Co. and the Central Statistics Office (CSO).

Lucara Loss Widens
   Lucara Diamond Corporation increased its loss in the second quarter of 2012 and lowered its sales outlook for the rest of the year. The junior mining company reported a loss of $7.6 million for the period, compared with a loss of $5.9 million a year earlier.
   The company stated that it expects to sell 230,000 carats of diamonds in 2012, lowering its previous guidance of 300,000 carats, due to insufficient water supply to the plant at Karowe, which was commissioned in April.
   For the first six months of 2012, Lucara posted a net loss of $11.8 million, compared with a net loss of $7.8 million in the same period a year earlier.

Gem Diamonds Delays Expansion
   Gem Diamonds reported that revenue fell 8 percent year on year to $180.2 million in the first half of 2012 as rough diamond demand softened. Net profit slumped 51 percent to $24.9 million for the period.  The company also noted that due to the weak economic conditions and the resulting drop in rough prices, the company has delayed its Letseng expansion project and development of its Gaghoo mine in Botswana.

Gemfields’ Production Down
   Gemfields plc reported production of emerald and beryl for the fiscal year that ended on June 30 fell 36 percent year on year to 21.1 million carats. The company concluded that despite a slightly reduced  demand for lower-quality goods at its last auction, demand for ethical emeralds continues to remain firm across all major markets.
   Gemfields told investors that illegal mining activity continues within the boundaries of its Kagem mining license in Zambia, but noted that it is working with the government to stem this problem.

Article from the Rapaport Magazine - September 2012. To subscribe click here.