Diamond Mining

The economics of diamond mining, how it works, the leading players involved in the industry, the issues they face, and the diamond value chain.

What Are the Forces Impacting Diamond Mining?

Above all, diamond mining is mostly impacted by consumer demand. Long-term shifts in interest as measured by how much consumers are willing to buy, the amount they are willing to spend, and the type of diamonds they are interested in all have an effect on diamond mining.

The impact of consumer demand may seem direct, however, the midstream – the manufacturing section of the diamond industry – often serves as a buffer between miners and consumers.

The following posts provide insights into exactly how this works, the ways miners sell rough diamonds, and the role mining plays in the economies of producing countries.

Who are the Largest Diamond Miners?

The leading miners by value are:

  1. De Beers

  2. ALROSA

  3. Rio Tinto

  4. Petra

  5. Dominion

Where are Diamond Mined?

Based on the Kimberley Process reported data, the leading diamond-producing countries are:

  • The Russian Federation

  • Botswana

  • Canada

  • Australia

  • The Democratic Republic of Congo

  • Angola

The order may change over time, yet these countries are almost always the largest source of diamonds.

How Are Diamonds Mined?

There are four main mining methods. In some cases, the choice of method is easy. In others, the decision is usually based on the economics of the mine. The four methods are:

  • Open pit

  • Alluvial

  • Underground

  • Marine

For a deeper look into this topic, please see below:

3

De Beers’ Market Share Falls in 2019, Hides a Surprise

De Beers’ Market Share Falls in 2019 - rough sorting - Edahn Golan diamond Research and Data.jpg

After a year of pains, and in the midst of one of the most complicated years since World War II, De Beers’ market share sank in 2019. Not only De Beers, but ALROSA, Rio Tinto, and Petra all lost market share.

4

Diamond Production Dropped, Now It Is Nosediving

Diamond Production Dropped. This Is How It Nosedives - rough diamonds mining - Edahn Golan

Global diamond production sank 6.9% in 2019, the deepest plunge in a decade. By value, diamond production dropped 6.2%. There were good reasons for this, and the updated diamond production forecast calls for an even more significant slide in 2020.

The Golan Diamond Market Report – Q1 2020

Edahn Golan Diamond Market Report-Q1 2020 - Featured image

The Q1 2020 issue of the Golan Diamond Market Report reviews transaction polished diamond prices, changes in midstream inventory & demand, and updates on prices and demand in the LGD market. All that, plus an exploration of consumer attitudes.

The Golan Diamond Market Report – Q4 2019

The Golan Diamond Market Report Q4 2019

The Q4 2019 issue of the Golan Diamond Market Report reviews transaction polished diamond prices, changes in midstream inventory & demand, takes an in-depth dive in to the activity of the main diamond centers, with updates on prices and demand in the growing LGD market. All that, plus an exploration into consumer attitudes towards diamond jewelry and engagement rings, checking who is interested in LGD around the world.

This is How a Confusing Diamond Decade Played Out

This_is_How_a_Confusing_Diamond_Decade_Played_Out-Featured_photo_jeremy-thomas

What’s happened between the time the diamond industry clawed its way out of the Lehman Brothers crises to the current slump? Some surprising findings about the value of freshly mined rough diamonds, global trade, and jewelry retail.

The Golan Diamond Market Report – Q3 2019

Edahn Golan Diamond Market Report Q3 2019

After an extended period of stunted activity in the consumer, wholesale, and manufacturing sectors of the global diamond value chain, at the end of the third quarter, there are a few small signs of improvement. Following the deep decline in the second quarter of the year, US jewelry sales surprisingly picked up in July, although, cyclically, it is a month …

DRC: 3% of Artisanal Diamond Diggers Are Women

Modest Pay and Young - Artisanal Diamond Mining in the DRC

Diamonds and gold are mined in some of the most remote areas of the world, some of which are completely off the radar. Few places are as remote as where alluvial mining is taking place in the Democratic Republic of Congo’s (DRC) northeast where women and men artisanal diamond diggers, some of who are extremely young, dig for these rare …

4

US Diamond Trade: The Figures Reveal Oddities

US Diamond Trade: The Figures Reveal Oddities - featured image

Diamond import and export figures can tell a story, and a good story sparkles with oddities. Good stories start with facts that raise questions. In this case, the question is why a consumer market would import eight times the amount of diamonds it consumes. Or how a country with no diamond mining might export more rough than it imports. Polished …

2

Rough Diamonds’ Loopy Ride

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Two opposing trends arise from the steady series of diamond miners’ annual reports that have come out over the past few days: while rough diamond production increased, the average rough diamond price per carat decreased in 2017. With few exceptions, this resulted in a rise in sales volumes, and a decline in rough diamond sales revenue. There are many reasons …

KP: Production Value Plunges, China Caves, and Manufacturers Focus

KP production plunges china caves manufacturers focus

 A look at the recently released Kimberley Process (KP) figures for 2016 reveals several interesting trends affecting the global diamond industry. First is that the top five producing countries have lost some of their market share, fewer rough diamonds are going through China, and yet this is still a very concentrated industry from a country perspective. In some areas, it is …