Botswana’s Minister Moagi and De Beers’ CEO Bruce Cleaver in an interview speak of the challenges in renewing their contracts and the impact of lab grown. They debunk some sustainability claims and discuss the importance of empowering the people of Botswana, changes in KP, a flat production forecast, and what role smart mining may play in the future.
Diamond Production
The economic activities of diamond producers and diamond-producing countries, their role in the value chain, and rough diamond sales.
What Is Diamond Production?
Diamond production is the set actions relating to the extraction of rough diamonds from sites all around the globe, and includes alluvial, open pit, and underground mining, as well as mining at sea.
Are Diamond Produced Wherever There are Diamonds?
For a resource to be developed into a mine, it first needs to be economical. Resources that produce only very low value diamonds, or that are very expansive to mine are not developed or mined. This means that there are many places around the world with known diamond resources that fall into this category.
What Issues Effect Diamond Production?
Consumer demand is the single most important force affecting diamond production. Changes in consumer demand are slow, but meaningful. Diamond production is also impacted by the cost of energy, weather, safety issues, and environmental concerns.
Each factor can lead to a complete halt in production.
What Countries Are the Biggest Source of Diamonds?
Currently, the leading diamond producing countries are:
- The Russian Federation
- Botswana
- Canada
- Australia
- The Democratic Republic of Congo
- Angola
In the past, several hundred years ago, India was the world’s largest source of diamonds. Then Brazil became the leading diamond producer until diamonds were discovered in southern Africa, and South Africa was the leading producer for many years.
What Companies Are the Largest Diamond Producers?
The leading diamond miners by value are:
- De Beers
- ALROSA
- Rio Tinto
- Petra
- Dominion
The following posts provide insights into how exactly this works, the ways miners sell rough diamonds, and the role production plays in the economies of producing countries.
For a deeper look into this topic, please see below:
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De Beers and ALROSA Market Share 2021
The major diamond-mining companies increased their market share in 2021. The sole exception was Rio Tinto, which closed Argyle. This year, it is ALROSA that is expected to lose market share. Although rough diamond supply to the market decreased in volume compared to 2019, total value increased.
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Global Diamond Production +12% in 2021 – But Really Declining
Global diamond production increased 12% to 120 million carats in 2021. And yet, last year’s production fell short compared to 2019 and was one of the lowest production levels in more than a decade. There are reliable reports of smuggling out of some diamond-mining countries.
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De Beers’ Market Share Falls in 2019, Hides a Surprise
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. The reason is changes in diamond production by smaller firms.
This is How a Confusing Diamond Decade Played Out
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
After an extended period of stunted demand 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 …
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Rough Diamonds’ Loopy Ride
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, rough diamonds’ average 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 for …
KP: Production Value Plunges, China Caves, and 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 as diamond production plunged, fewer rough diamonds are going through China, and yet this is still a very concentrated industry from a country perspective. …
Global Diamond Production Decreases 4.2% in 2015
Diamond production in 2015 had mixed results. According to just released Kimberley Process figures, 127.4 million carats of diamonds were mined around the world, a 2.1% increase compared to 2014. The total value of production decreased 4.2% to $112.3 billion. The rise in volume and decrease in value resulted in a decline in the average value of production. Prices fell …
Deconstructing De Beers’ $540M Cycle Sales
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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