The company lowered its full-year diamond target in April to between 26m and 29m carats. It will now likely reduce that further.
Anglo American Plc is looking to cut more diamond production as the industry continues to struggle with weak demand and too much stock.
While Anglo maintained its production target for now at its De Beers unit, the company said that it’s looking at how it can reduce output further. ADVERTISEMENT CONTINUE READING BELOW The continued poor performance of the diamond market will add to Anglo’s frustrations as it looks sell or separate its De Beers business.
Anglo drew up a radical plan to restructure its business while it fended off a $49 billion approach from BHP Group earlier this year. That included exiting platinum, coal and diamond mining.The company would prefer to wait for a recovery in the diamond market, as the internal view at the company is that De Beers should command a price that reflects its status as a trophy asset.
The market came to an almost complete halt last year as weak global demand combined with too much supply. That’s continued this year with poor demand from the crucial Chinese market.The company lowered its full-year diamond target in April to between 26 million and 29 million carats. It will now likely reduce that further.
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