Debswana Diamond Company's rough diamond sales increased by 37.5% in the first nine months of 2022. In addition, the Bank of Botswana released statistics on Tuesday showing steady jewelry demand.
A joint venture between Anglo American AAL.L unit De Beers and the Botswana government, Debswana sells 75% of its output to De Beers. State-owned Okavango Diamond Company takes up the balance.
Botswana's Debswana Posts 37.5% High In Diamond Sales Of 9-Month
From January to September, the sales of Debswana rose from $2.602 billion a year to $3.578 billion. Data from the central bank showed this.
In the pula currency of Botswana, the sales of Debswana's rough diamond rose 52.5%. That is 43.237 billion pula, which reflects a stronger dollar in the period.
In pula and dollar terms, the nine-month sales top the full-year result of the company in 2021 when sales totalled 38.134 billion pula and $3.466 billion.
Debswana accounts for almost all the diamonds that are produced in Botswana. The other only operating diamond mine in Botswana is Lucara's LUC.TO Karowe mine.
The country generates about 30% of its revenue from diamonds. It generates 70% of its foreign exchange earnings from diamonds as well.
However, De Beers sees the possible risk that the market might slow down in the coming months.
The slowdown in the market is due to a deterioration in global economic conditions, continued Chinese COVID-19 lockdowns, and reduced spending by consumers.
In a statement last week by the parent firm Anglo American, the firm said, "In line with normal seasonal trends, we anticipate that in the final quarter of the year 2022, sales will be affected by the normal temporary closure of cutting and polishing factories for the religious holidays in India."
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