Diamond Production - Page 3 of 4

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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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 …

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What is the Price of a Diamond?

What is the price of a diamond? Diamond polishing

Not too long ago, I posted a question on Twitter, asking people what they thought was the average price of a diamond. Specifically, I wondered how much, in informed people’s opinion, was the average wholesale price per carat of polished diamonds. Just for fun, pick a figure before reading on, and keep it in mind. In response to my question, …

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Sight Okay, Retail Not at All

Sight Okay, Retail Not at All - Gem Diamonds

If you are trying to see the half-full part of the glass, you’ll hear the voices that say that “De Beers finally got the message and lowered prices.” From a Sightholder perspective, the conclusion is that the Sight was okay. While that may be true and important, the issue is not only about price, but also about quantity. As the …

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Sightholders Begin New Contract Period Cautiously

Smallish Sight Expected as Sightholders Begin New Contract Period Cautiously

On Monday, 84 Sightholders and two  will begin attending the first Sight of the new contract period – but quite cautiously. The Sight is not expected to be very large, around $400 million, because Sightholders opted to start the contract by scheduling fewer goods for the upcoming Sight. The first Sight of the 2015-2018 Global Sightholder Sales (GSS) contracts will …

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Rethinking the Diamond Model

Rough diamond sorting - De Beers

Sometimes, connecting figures in ways in which they are not usually put together can highlight a great truth – a truth hiding in plain sight. Most people who follow the diamond industry already are familiar with the following figures. Yet what they disclose in this context is perhaps new and may require rethinking the diamond model.

Refusals, Strops, Contracts and Conspiracies – A Rough Market Review

Refusals, Strops, Prices, New Contracts and Conspiracies – A Rough Market Review

In a way, there were no surprises this past week, and that in itself should be a surprise. De Beers offered a large rough diamond supply to its clients – at slightly higher prices – and the market just could not digest it. Why did the miner offer so many goods in an overloaded market? Why were the prices high …

The US State of the Jewelry Market Report

US Market report jewelry diamonds consumer expenditure

Millennials spend more on jewelry than any other age group Age group between 25-34 spent 28% more than average household Consumers are buying more jewelry but at a lower price-per-piece Fine jewelry sales in the US reach $68.8 billion Watch sales reach $9.13 billion, increasing 7.7% Buying season spans throughout the year, with sales during traditional holiday season dropping 1.2% …

Interview with Rubel & Menasche

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 diamonds are an interesting concept, among other things because of the …

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 …

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 …