The diamond market suffered from the effects of the spread of covid-19 in early March, and containment measures have already pushed De Beers, the world's largest producer by value, to cancel April sales.
Russian ALROSA, the No. 1 carat producer, is exploring options for online trading, as global travel restrictions make it virtually impossible to have a physical physical examination of the gemstones.
However, small producers were forced to take more extreme decisions, suspending management for a year and stopping operations. Mines in South Africa, Canada and Lesotho have been put in charge of and maintained for at least a few weeks to stop the spread of the virus.
Petra Diamonds was also forced to cease its production prospects for the fiscal year 2020 after closing its mines in South Africa due to a mandatory 21-day blockage aimed at combating the worsening coronavirus pandemic.
Gemfields, a ruby ??and emerald mining company that returned to the London Stock Exchange in February, suspended “all but critical operations” at its Kagem mine in Zambia and canceled the upcoming auction.
According to VTB Capital estimates, growing interruptions in the mining industry threaten 2.5% of the rough diamond supply expected during the year.
Canadian Lucara Diamond said on Wednesday that it continues to work, but noted that it is impossible to judge how covid-19 can change the business landscape.
The Vancouver company also suspended production and sales for a year. In 2020, production totaled between 370,000 and 420,000 carats. It is estimated that sales totaled between 350,000 and 390,000 carats, which generated revenues of between $ 180 and $ 210 million.
“The global diamond industry is experiencing the widespread impact of covid-19 throughout the value chain, which translates into lower sales, lower prices, and fewer mines,” said Eira Thomas, Executive Director.
