The sales of rough diamonds sourced at the Gahcho Kue mine in Canada have dropped to an unprecedented low in the face of declining demand and an unsteady market environment. Two major diamond industry players, Mountain Province and De Beers, who own almost an equal share of the mine production are affected by the change.
Reports indicate an over 30% drop in raw diamond sales with the average prices reaching as low as 70 dollars per 1 ct. This can be partially attributed to the lower volume of these stones sold as well as plunging prices caused by several factors.
Amid the global economic challenge, the diamond industry is also taking a hard blow. China, one of the largest consumers of diamonds, has unprecedentedly decreased its jewelry demand. The situation is worsened by the midstream oversupply and the fact that smaller gems became less popular when compared to even the previous year. The market experienced the most recent surge in small stone sales during the first three months of 2023. However, from there, things have started to go downhill for the smaller diamonds.
Furthermore, the quality of the ore sourced at the mine has decreased by almost 10% compared to the previous year, resulting in a 4% drop in the output which fell from 1.35 to 1.3 million cts.
Mountain Province CEO Mark Wall stated that the first quarter is usually the most difficult. However, with the improved index of ore treated per day and general plant efficiency, the CEO is hopeful about the Gahcho Kue mine’s future. The enterprise posted its full business report on May 8, 2024.
