Anglo American revises diamond production forecast

Anglo American Plc has revised its diamond production forecast for the year downwards due to ongoing challenges in the industry stemming from excessive inventory following a tumultuous 2023, Bloomberg reported on Tuesday.

In the latter half of last year, the sector nearly ground to a halt as both Anglo-owned De Beers and Alrosa PJSC drastically reduced supplies in a bid to halt plummeting prices. While these measures helped to stabilise the market somewhat, they also resulted in a significant buildup of stockpiles for the two largest diamond miners.

Despite a gradual recovery in demand this year, clearing this surplus inventory is proving to be a slow process.

On Tuesday, Anglo announced that its De Beers unit now targets a production range of 26 million to 29 million carats for the year, down from the previous projection of up to 32 million carats. However, the company maintained its other production objectives.

This adjustment brings some stability to output levels following last year’s dramatic production cuts across its portfolio, aimed at cost reduction and addressing operational issues.

Anglo’s shares dipped 1.8 per cent in London trading, mirroring a broader decline in mining stocks.