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:

Waddling Forward, Will Sight 9 Total Less than $100 Million?

Waddling Forward, Will Sight 9 Total Less than $100 Million?

A quick note before Sight 9 – it’s going to be small, but it will take place. De Beers is adapting to the market, or as some may say, they are playing it by ear. The company is trying to meet the changing needs of its clients. Sadly, these changing needs seem mostly like detrition. According to one definition, detrition …

5

The Lesson of Sight 8: No Need for More Rough

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

There is a wide range of estimates about the value of the goods De Beers offered this cycle. Be it $350 or $500 million, very little was purchased. A current estimate puts actual purchases by Sightholders at $150-$200 million, underscoring that the diamond industry is not seeking rough. No Need for More Rough, At Least 50% Refusals It does not …

Sightholders Don’t See Relief in Sight

Sightholders don’t see relief in sight - featured image

Pop quiz: Rough diamond prices were reduced at Sight 7 by: 13%, 9% or 5%? If you examine the price list, you’ll see that the price of some goods decreased by as little as 2.5%, whereas others were cut by as much as 20%. One report may have been based on a simple average of the discounts and came close …

6

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. After initially posting mistaken numbers, the Kimberley Process Certification Scheme (KP) published its rough diamond production, import and export figures for 2014. …

8

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 …

20

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 …

7

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 …