Latest news with #diamondmarket
Times
23-07-2025
- Business
- Times
Gem Diamonds cuts jobs and pay to ride out rough times
Rough times in the diamond market have forced Gem Diamonds to unveil a swathe of cost-cutting measures. The owner of the famed Letseng mine in Lesotho said it planned to cut 250 jobs or a fifth of its workforce, temporarily cut the salaries of its directors, executives and management, and sharply curtail its waste mining activities. 'Considering the prolonged weakness in global diamond prices, compounded by a weak US dollar and ongoing US tariff uncertainties, Gem Diamonds has implemented decisive measures to conserve cash and protect shareholder value,' it said. The shares fell by 13 per cent to 5¼p after it outlined what it described as 'necessary operational changes and cost management measures' in response to 'continued challenging market conditions'. The one-time FTSE 250 company is now worth just £7 million.
Reuters
06-06-2025
- Business
- Reuters
Botswana's Debswana curbs diamond production as weak demand persists
GABORONE, June 6 (Reuters) - Botswana's Debswana Diamond Company is temporarily pausing production at some of its mines, cutting output in response to prolonged weakness in the global diamond market, it said on Friday. The global diamond market has experienced a downturn since the second half of 2023, which caused Debswana to cut production by 27% to 17.93 million carats in 2024. Debswana, which accounts for about 90% of Botswana's diamond sales, reported a 46% drop in sales revenues last year. The company, a 50-50 joint venture between Botswana's government and global giant De Beers, now plans to reduce output to 15 million carats in 2025, it said in a statement. "Debswana Diamond Company continues to prudently navigate the challenging market conditions, including sustained low demand across the diamond pipeline and emerging pressures such as U.S.-imposed tariffs," it said. Debswana is temporarily pausing production at Jwaneng Cut 9 and Orapa mines, after suspending operations at its Letlhakane tailing plant and Jwaneng Modular plant in April. The temporary stoppages are expected to deliver significant cost savings across fuel, electricity, and other production consumables, Debswana added. Long-term initiatives such as the Jwaneng underground project, to convert Debswana's flagship open pit mine to an underground operation, will continue, but selected capital projects will be slowed down to save costs. No job involuntary cuts are planned, although the company continues to offer voluntary separation, it added. Botswana gets 30% of its revenue and 75% of its foreign currency earnings from diamonds and the current market downturn resulted in the economy contracting by 3% in 2024. The International Monetary Fund has forecast a further 0.4% contraction this year.
