Diamond Mining - Page 3 of 4

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:

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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: Don’t Worry about This Sight, But about the Next …

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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 per carat of diamonds. 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, …

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Sight Okay, Retail Not at All

Sight Okay, Retail Not at All - Gem Diamonds

If you are trying to see the half-full part of the glass, you’ll hear the voices that say that “De Beers finally got the message and lowered prices.” From a Sightholder perspective, the conclusion is that the Sight was okay. While that may be true and important, the issue is not only about price, but also about quantity. As the …

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Sightholders Begin New Contract Period Cautiously

Smallish Sight Expected as Sightholders Begin New Contract Period Cautiously

On Monday, 84 Sightholders and two  will begin attending the first Sight of the new contract period – but quite cautiously. The Sight is not expected to be very large, around $400 million, because Sightholders opted to start the contract by scheduling fewer goods for the upcoming Sight. The first Sight of the 2015-2018 Global Sightholder Sales (GSS) contracts will …

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Rethinking the Diamond Model

Rough diamond sorting - De Beers

Sometimes, connecting figures in ways in which they are not usually put together can highlight a great truth – a truth hiding in plain sight. Most people who follow the diamond industry already are familiar with the following figures. All were published in the past and have been discussed in many diamond industry circles to some extent, yet what they …

Refusals, Strops, Contracts and Conspiracies – A Rough Market Review

Refusals, Strops, Prices, New Contracts and Conspiracies – A Rough Market Review

In a way, there were no surprises this past week, and that in itself should be a surprise. De Beers offered a large rough diamond supply to its clients – at slightly higher prices – and the market just could not digest it. Why did the miner offer so many goods in an overloaded market? Why were the prices high …

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The US State of the Jewelry Market Report

US Market report jewelry diamonds consumer expenditure

Millennials spend more on jewelry than any other age group Age group between 25-34 spent 28% more than average household Consumers are buying more jewelry but at a lower price-per-piece Fine jewelry sales in the US reach $68.8 billion Watch sales reach $9.13 billion, increasing 7.7% Buying season spans throughout the year, with sales during traditional holiday season dropping 1.2% …

Interview with Rubel & Menasche

Interview

How lab-grown, transparency, Amazon’s low price-point jewelry, Anglo American’s takeover of De Beers and high retailer fragmentation are influencing the diamond industry today. The second in a series of interviews with Rubel & Menasche’s Marianne Riou is here.