It was the lost year for the diamond industry, and 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 have been avoided, and what lessons can be drawn from it, short-term …
Diamond Production - Page 2 of 2
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:
Has De Beers Unveiled Deep Kimberley Process Mistake? Russia & Dubai on the Rise
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 figures are at odds with De Beers’ diamond production report. Which is more accurate? After initially posting …
How Sightholders Take Care of Business – A Market Report
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. It seemed that no …
The 2015 US State of the Jewelry Market Report
Discover one of the first in-depth analyses of the U.S. jewelry market, covering consumer buying habits, jewelry sales, Millennials’ spending patterns, retail market share, seasonal demand, and industry trends. Based on extensive market research, the report examines who buys jewelry, how much they spend, where they shop, and how purchasing behavior is reshaping the jewelry industry. A valuable resource for jewelers, diamond companies, manufacturers, retailers, investors, and market analysts seeking data-driven insights into the U.S. jewelry market.
Interview with Rubel & Menasche
In an interview for Rubel & Menasche, The Old Days Are Gone, A New Way Of Doing Business Is Here, Edahn discusses 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. A few excepts: Lab Grown Lab-grown diamonds are an interesting concept, among other things because …
De Beers’ Sales +11% in 2014
De Beers‘ sales results were announced this morning. The diamond mining company saw a sharp rise in sales, helped by a jump in average price per carat on its rough diamonds. De Beers’ Sales Results Summary 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 …
Rio Tinto’s Diamond Sales +5.8% in 2014
Rio Tinto had a good year in diamonds. A strong rise in rough diamond prices had led to an increase in gross revenue from diamonds in 2014 despite a sharp drop in diamond production. Gross revenue increased to $901 million, up 5.8% from $852 million in 2013. Breaking Down Rio Tinto’s Year In 2014, the company mined 13.87 million carats, a …
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