Diamond Mining - Page 4 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:

De Beers Sales +11% in 2014

Rough diamond sorting - De Beers

Anglo American announced its results this morning and with it De Beers‘ results: Sales: $7.114 billion (+11%) Carats sold: 32.73 million carats (+5%) Underlying EBITDA: $1.818 bln CAPAX: $689 million Return on CAPEX: 15% Highlights from the 2014 financial report: De Beers’ underlying EBIT increased by 36% to $1.4 billion (2013: $1.0 billion). The increase was due primarily to solid demand across …

Rio Tinto’s Diamond Sales +5.8% in 2014

Rio Tinto’s Diamond Sales +5.8% in 2014 The Argyle Pink Jubilee Diamond

A strong rise in rough diamond prices have led to an increase in Rio Tinto’s gross revenue from diamonds in 2014 despite a sharp drop in production. Gross revenue increased to $901 million, up 5.8% from $852 million in 2013. In 2014, the company mined 13.87 million carats, a 13% year-over-year decrease. The decrease coincides with the move from open-pit …

Large December Sight

Sorted rough in bags. Photo: De Beers

As expected, De Beers has an uncharacteristically large December Sight. According to early estimates, the Sight this week offered ~$650 million worth of rough diamonds. There was very little ex-plan reported and box assortments are leaning towards smaller size goods, which possibly explains the somewhat lower prices.

ALROSA Returns to Dubai

Palm Dubai

ALROSA has reopened its ARCOS East DMCC sales office in Dubai in November after suspending activity in the emirate during the market downturn in 2009. In a press release published today, ALROSA said the decision to reopen is connected to the rapid growth of Dubai as a global diamond-trading center. Among the Russian diamond miner’s goals for the Dubai presence …

Rough Diamond Market Report: Subdued Market Ahead of Diwali

Even with a very small supply of rough diamonds from the major diamond suppliers De Beers and Alrosa during this diamond cycle, premiums in the secondary market were so low that in some categories it meant selling at a loss for the first hand buyers – the Sightholders and Alrosa clients. There are several reasons for this, the upcoming Diwali holiday …