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:

  1. De Beers
  2. ALROSA
  3. Rio Tinto
  4. Petra
  5. 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’ Market Share Falls in 2019, Hides a Surprise

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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

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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 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

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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, 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

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 as diamond production plunged, fewer rough diamonds are going through China, and yet this is still a very concentrated industry from a country perspective. …

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Global Diamond Production Decreases 4.2% in 2015

The Lesson of Sight 8: No Need for More Rough - featured

In 2015, 127.4 million carats of diamonds were mined around the world, a 2.1% increase compared to 2014, according to just released Kimberley Process figures. The value of global diamond production decreased 4.2% to $112.3 billion. The average value of production fell 6.2% to $108.96 per carat. Russia is by far the largest diamond producing country by volume and value. In …

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 …

This is the Lost Year in Rough Diamonds

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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 …

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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 …