De Beers unable to sell diamond stock worth $2 billion
The international diamond mining corporation De Beers has accumulated a stockpile of diamonds worth around $2 billion, which it is unable to sell due to low demand in China and increasing competition from synthetic diamonds, according to the Financial Times.
A prolonged decline in demand, which began during the coronavirus pandemic, forced De Beers to take steps to limit the supply of gemstones. As a result, De Beers reduced its mining output by approximately 20% compared to last year’s levels and lowered prices on its products.
"It has been a disappointing year for rough diamond sales", said the company's CEO, Al Cook, according to the newspaper. It was noted that in the first half of this year, the group’s revenue dropped to $2.2 billion, compared to $2.8 billion during the same period in 2023.
Earlier, De Beers' Chief Operating Officer Moses Madondo stated that the peak of natural diamond production in the global industry has passed, and there is now a trend towards declining global production. He mentioned that the company will focus on the production of synthetic diamonds in the future.
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