Bengaluru — Petra Diamonds, which has the world’s third-largest useful resource of diamonds, mentioned on Wednesday it had delayed the sale of gems from its Cullinan Mine in SA till there was better readability across the influence of US tariffs.
The corporate, as a part of its periodic tenders, had already offered diamonds from its Finsch mine, additionally in SA, and its Williamson mine in Tanzania earlier than US President Donald Trump unleashed a barrage of tariffs final week.
These tariffs, relevant on US imports starting from dental floss to diamonds, have left corporations globally scrambling to rethink their enterprise and sparked issues of a commerce struggle that might stunt financial progress.
SA is among the greatest exporters of diamonds to the US, together with India.
Petra, already combating widening losses because of extended weak spot within the diamond market, is within the midst of a restructuring plan.
Furthermore, the enduring Cullinan mine, from the place the most important ever gem-quality diamond was recovered 120 years in the past, has been producing fewer high-quality diamonds lately.
That has added to Petra’s woes when it enters the market to promote diamonds through tenders, that are timed round particular calendar occasions and to suit with different regional diamond gross sales.
“The US tariffs announcement late final week has resulted in appreciable diamond market uncertainty,” the diamond miner mentioned.
Petra offered 176,000 carats in gems from its Finsch and Williamson mines for a complete of $18m in its fifth tender this yr, a 9% soar in common value from the fourth tender.
That was regardless of withdrawing about 200,000 carats of Cullinan materials from the newest tender.
Nonetheless, it has made $103m in gross sales general from the primary 5 tenders this yr, a 25% drop from the $138m it made within the first 5 tenders final yr.
Reuters
