Diamond Mining Research and Analysis - Page 2 of 3

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:

Deconstructing De Beers’ $540M Cycle Sales

Deconstructing De Beers’ $540M Cycle Sales - featured

De Beers announced on Tuesday that the total value of rough diamonds it supplied during the first sales cycle of 2016 was $540 million. This number, and the context in which it was revealed, requires some explanation. It is not the value of the Sight, but rather that and beyond. Just what does this number include? Basically, all the rough …

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Fine Jewelry Sales Up, Rough Prices Down, Optimism Ensues (Unjustly)

Fine Jewelry Sales Up, Rough Prices Down, Optimism Ensues (Unjustly)

Fine jewelry sales in the US posted a rise in November, and there are signs that December was alright too. In the last couple of weeks of December, Mumbai diamond traders had a sudden rise in sales, both from the US and China, leading to a burst of optimism that drove demand for Sight goods. De Beers in turn lowered prices …

This is the Lost Year in Rough Diamonds

This is the Lost Year in Rough Diamonds - feature image

What a horrible year it was. Miners, traders and retailers will remember 2015 as the year of lost capital, walking on the cusp of bankruptcies, lost opportunities and diminishing value of diamonds. How did it happen, could it been avoided and what lessons can be drawn from it – short term and long? The Last Cycle of 2015 – Sight …

Waddling Forward, Will Sight 9 Total Less than $100 Million?

Waddling Forward, Will Sight 9 Total Less than $100 Million? - Edahn Golan

A quick note before Sight 9 – it’s going to be small, but it will take place. De Beers is adapting to the market, or as some may say, they are playing it by ear. The company is trying to meet the changing needs of its clients. Sadly, these changing needs seem mostly like detrition. According to one definition, detrition …

Sightholders Don’t See Relief in Sight

Sightholders don’t see relief in sight - featured image

Pop quiz: Rough diamond prices were reduced at Sight 7 by: 13%, 9% or 5%? If you examine the price list, you’ll see that the price of some goods decreased by as little as 2.5%, whereas others were cut by as much as 20%. One report may have been based on a simple average of the discounts and came close …

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Has De Beers Unveiled Deep KP Mistake? Russia & Dubai on the Rise

Has De Beers Unveiled Deep KP Mistake? Russia & Dubai on the Rise - featured image

The return from the summer break has been anything but smooth. While the focus has been on the Sights, there are other issues, such as long-term trends, that are becoming clearer as we dive deeper into the current crisis. The recent Kimberley Process (KP) figures are at odds with De Beers’ diamond production report. Which is more accurate? After initially …

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How Sightholders Take Care of Business – A Market Report

How Sightholders Take Care of Business - Botswana Sight

From retailers in Middle America to jewelry manufacturers in India, from polishers in Israel to rough traders in Antwerp and miners in Africa – the global diamond industry seems tired, pessimistic and gloomy. Everyone in the pipeline is seeing their sales decline and their turnover shrink, with improvement resting on a distant horizon – constantly receding. However, there is a …

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Is the Diamond Market Screeching to a Halt?

diamond market - Is the Diamond Market Screeching to a Halt

From top to bottom, the diamond market is changing, and in most places the change is anything but positive. The upcoming Sight, business failures in India and Israel and the languishing retail market all have issues. Not all is bad though, there is some good news as well. Rough Diamond Market: Worry about the Next Sight The upcoming Sight is …

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Buying and Crying, the Longest Diamond Recession

Buying and Crying, the Longest Diamond Recession

Sometimes, when talking with Sightholders, they have a strong, even passionate opinion about their Sight supplies, prices and the state of the market. This happens at times of instability. At other times, their views are quite moderate, yielding to the market and everything that is happening in it at the moment. However, during a turbulent period, it is very rare …

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What is the Price of a Diamond?

What is the price of a diamond? Diamond polishing

Not too long ago, I posted a question on Twitter, asking people what they thought was the average price of a diamond. Specifically, I wondered how much, in informed people’s opinion, was the average wholesale price per carat of polished diamonds. Just for fun, pick a figure before reading on, and keep it in mind. In response to my question, …