The De Beers Group faced off tricky macro-economic conditions to record first-half earnings before interest tax depreciation and amortisation (Ebitda) of $0.3-billion, with the diamond company's 50% mining margin the highest within the Anglo American stable.

"Operational performance at De Beers has been really good," Anglo CE Duncan Wanblad told investment analysts and journalists at this week's half-year results presentation, at which Anglo's overall half-year Ebitda was reported to be a 49%-lower $5.1-billion.

"The macro-economic conditions have indeed impacted on rough diamond demand, as they always do, and we are likely, given what's happening in China, to remain challenged during the second half of this year. The consequent result of that is there will be a little bit of build-up in midstream inventory levels," said Wanblad.

In producing 16.5-million carats in the half-year, De Beers achieved increases across most assets.

An exception was South Africa's Venetia in Limpopo province, which, as planned, transitioned from open pit to underground, in what is described as "a really hard-earned milestone". (Also watch attached Creamer Media video.)

Regarding the macro headwinds faced, De Beers Group CFO Sarah Kuijlaars told Mining Weekly in a Teams interview: "The macro-economic conditions have been tougher than we would like. It's easy to forget, but 2021/2022 were outstanding for the diamond industry, and we've come off that a bit. You'll recall there was fiscal stimulus in the US and as that's unwound, it has provided softer conditions in the diamond market.

"India demand has been strong and then if you look across to China, where we all hoped for the pent-up demand to come through, as it had in the US, that's been a bit slower than we expected, so overall tough macro environments for us in the first half," said Kuijlaars.

Diamonds are a discretionary purchase and consumers have got to feel confident to go out and purchase their diamonds.

"We're looking for signals, particularly in the US and China, to see how that flows through to the end of this year. If we take a step back, we still remain confident of the long-term supply/demand fundamentals. We know demand is going to grow. We know more middle-class income people are going to aspire to buy diamonds, and supply is going to support that demand growth in the longer term."

Mining Weekly: What benefits are on the way from the Venetia Underground Project now that first production has been achieved?

Kuijlaars: I think we've got to be very conscious that we've got a quite an extensive ramp-up coming through the system, but I'm really proud of how the team has worked together and delivered this key milestone.

When will all the i's be dotted and the t's crossed in the extension of the Botswana agreement to 2043?

The agreement with the government of Botswana is a really important agreement. I'm delighted that we reached agreement in principle at the end of June, but, as you say, that was an agreement in principle, and we have to work through the long form agreements, which will take months, not weeks, and then ultimately will go to both shareholders for support.

Why is the new 25-year Debswana mining licence so important to De Beers?

It secures our access to real tier-one assets, some of the best diamond mines in the world. We've been a partner with the government of Botswana for 50-odd years and we look forward to the next 50 with the people of Botswana.

When will all the details be sorted out in the new sales arrangement to 2033?

For us, it's been very much a negotiation of two halves, of the sales agreement and the mining licence, and they were both being progressed in parallel, but it was great that at the end of June, we did agree to maintain the sales agreement on the previous terms until the new sales agreement is fully signed.

Regarding the Diamonds for Development Fund, and the benefits that will accrue to the people of Botswana from De Beers' initial $75-million, one b...