De Beers clears stockpiles that built up after India’s bank note shock
The Anglo American unit sold more than 14-million carats in the first quarter — the most since at least the start of 2016, when it first published data
London — De Beers sold almost twice the diamonds it mined in the first quarter, as the top producer cleared stocks that piled up after India torpedoed demand in the local gem industry by abolishing large-denomination bank notes. The Anglo American unit sold 14.1-million carats, the most since at least the start of 2016, when it first published data, and mined 7.4-million carats, it said in a statement on Monday. De Beers, which does not disclose inventories, built up stocks late in 2016. That followed India’s shock decision to abolish 500 rupee (about R101) and 1,000 rupee (R200) bank notes, saying it was seeking to tackle corruption. The policy hit cheaper gems in particular, as local polishers and traders often rely on cash transactions. As much as 90% of the world’s rough diamonds pass through India to be cut, polished or traded. De Beers reacted to the Indian policy by allowing clients to refuse more of the company’s cheaper stones at its sales than typically allowed under compl...
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