How are ​Diamonds Mined, Processed, and Traded?

Sharif Khan
Sharif Khan
Last Updated    EST 
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Diamonds are among the most valuable gemstones known for their alluring beauty. They have been used as adornments since ancient times and were probably first used in Ancient India.

The initial diamond trade route was from east to west India until the stone was discovered in Brazil, creating new diamond trade routes. Diamond mining began in Kimberley, South Africa, after the first discovery of diamonds on the banks of the Orange River. This was aptly called the Eureka Diamond, and it started the diamond mining industry in South Africa.

Only 38 known diamond mining companies worldwide are in several African countries, Asia, North America, and Oceania. The world's largest diamond company is De Beers, which has been synonymous with diamonds for 125 years.

Although De Beers initially earned a negative reputation for its domination of diamond mining, processing, and trade for so many years, it has been instrumental in establishing mining companies in several countries that now enjoy economic growth as a result of the trade of this precious commodity. They are still in the leading position in diamond mining and production and would be very hard to overthrow regarding mining and processing facilities and experience.

Half of the world's largest diamond mines are in Russia, while the world's biggest and richest mine in terms of value is in Botswana. Some of the world's largest diamond deposits are concentrated in several regions, as diamonds are a natural resource produced only under specific pressure and temperature conditions in the earth's mantle. They are sourced in open-pit, underground, or alluvial mines, where they have eroded from the ground and deposited by water or weather.

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Treasured for their beauty and allure, Diamonds have adorned people since ancient times, likely originating in India. Initially, the diamond trade flowed from India to the West until Brazilian discoveries reshaped trade routes. South Africa’s diamond mining industry began with the discovery of the Eureka Diamond along the Orange River. Today, only 38 diamond mining companies operate globally, with De Beers, a dominant force for over 125 years, significantly shaping the industry. Key diamond mines are located in Russia and Botswana, where specific geological conditions create the rare deposits found in open-pit, underground, or alluvial mines.

Largest Diamond Mines

Here are some of the countries with the largest diamond mines:

Angola

Botswana

South Africa

Congo

Ghana

Guinea

Lesotho

Namibia

Sierra Leone

Tanzania

Zambia

Zimbabwe

Asia, Russia, China, Indonesia, Malaysia, and India all have diamond mines or facilities.

North America, Canada, and the United States have operational diamond mines.

Brazil, Venezuela, and Guyana are the only countries in South America with alluvial diamond mines. Exploration companies have intensified efforts in Brazil to locate and assess the several identified kimberlites and alluvial deposits found in the Mato Grosso State.

Russia is the largest diamond-producing country in the world, contributing 25% of the world's total supply. ALROSA is the leading diamond company in Russia, accounting for 97% of the country's production.

Botswana is the biggest diamond producer in terms of value, accounting for 20% of the global supply.

Top Ten Diamond-Producing Countries

The top ten diamond-producing countries in the world are as follows:

Russia - 22.4%

Botswana - 19.9%

Congo - 18.6%

Australia - 13.2%

South Africa - 9.10%

Canada - 8.10%

Angola - 4.80%

Namibia - 1.30%

Ghana - 0.60%

Brazil - 0.40%

Leading Diamond Companies in the World

De Beers has been synonymous with diamonds due to their domination of mining and selling over the past 100 years. De Beers controlled the prices and distribution of diamonds worldwide until 2000, when their control on diamonds began to break. Diamond producers from Russia, Canada, and Australia decided to sell directly to manufacturers without going through De Beers as a middleman. This paved the way for diamond mining companies to become key players; however, De Beers remains the undisputed diamond mining and manufacturing leader.

De Beers also owns the Diamond Trading Company, which sells and distributes rough diamonds, and De Beers Diamond Jewelers Ltd., which it co-owns with the famous brand Louis Vuitton Moët Hennessy Group (LVMH). De Beers sells its diamonds through LVMH after having them polished and set into jewelry. In several countries in Africa, De Beers co-owns diamond mines through deals with the government.

ALROSA is one of the few companies close to being a competitor to De Beers, with their discovery of the Verhne-Munskoye mine in 2007. The company currently operates 16 kimberlite pipes and 16 alluvial mines. It also has operations in nine countries and ten regions in Russia. The company accounts for over 25% of the world's diamond carat output. 95% of Russia's total diamond production is done through ALROSA.

From ALROSA's mines, preliminary sorting and valuation of the mined diamonds are first undertaken in their Diamond Sorting Center in Mirny. The initial valuation of these diamonds takes place in three locations: at ALROSA's United Selling Organization in Moscow, the Kommeral Company in Mirny, and at Yakutsk Diamond Trading Enterprise in Yakutsk. The smallest diamonds mined are separated at the preliminary sorting and sent to the Kommeral Company, where they are sold as industrial diamonds or manufactured into diamond powder.

Rio Tinto Group is another major diamond producer. It has been in the industry since 1979 and operates two diamond mines in Australia and Canada while also developing another mine in India. Rio Tinto used to operate the Murowa Diamond Mine near Zvishavane in Zimbabwe until 2015, when it sold its shares to a Zimbabwean mining company.

Rio Tinto primarily deals in mining, selling, and marketing, mostly rough or uncut diamonds. It is also known for the Argyle pink diamonds mined from Western Australia. Most of the diamonds from this mine are cut and polished for jewelry purposes. The rare pink Argyle diamond is primarily sourced from this mine and has become the company's trademark stone. Their second mine, Diavik mine in the Northwest Territories in Canada, produces some of the most coveted high-grade diamonds in the world, possessing good shape and great clarity. The diamonds mined in Rio's facilities are sorted in Antwerp, Belgium, and sent to Perth, Australia, where they are cut and polished. The polished stones are then sold in the US, Hong Kong, and Indian diamond markets.

Debswana Diamond Company Ltd. is the world's leading diamond-producing company in terms of value and the second-largest in terms of volume. It is a Botswanan company operating four mines in Orapa, Jwaneng, Lethalkane, and Damtshaa. The company is co-owned by the Botswana government and the De Beers Group. Debswana has been instrumental in uplifting Botswana's economy, helping it rise from being one of Africa's poorest to its current status as a middle-income nation.

Diamonds mined in the Orapa and Jwaneng sites are sorted in state-of-the-art facilities inside the mining compounds. Similar facilities are already being installed in all of Debswana's other mines.

Diamonds produced by Debswana are sold through the Diamond Trading Company of De Beers. De Beers sells them to clients at " sights " events in Gaborone.

The Dominion Diamond Corporation (DDC) is a Canadian company operating two mines in Diavik and Ekati. DDC was formerly known as the Harry Winston Diamond Corporation, which was bought entirely by Aber Diamond Corporation in 2006. This eventually became the Dominion Diamond Corporation that it is today.

DDC's mines in Diavik are co-operated with the Rio Tinto Group, although DDC has sole mine ownership. Its diamonds are sent to its sorting facilities in Toronto to be sorted according to clarity, color, weight, and shape. They are then shipped to the Antwerp and Mumbai sales offices, where up to 75% of their diamonds are put up for sale on the open market. One of DDC's famous clients is Tiffany & Co., America's premier jewelry house. DDC is the world's third-biggest provider of rough diamonds in terms of value.

See the Full list of the top ten diamond companies.

Diamond Trading Centers

The city of Antwerp in Belgium is the world's diamond trading center. It is home to over 1,500 diamond companies, including rough diamond traders, manufacturers, dealers, and sellers of polished diamonds. An estimated 80% of the world's rough diamonds are handled in this city, which accounts for €30 billion of its annual income. This is why Antwerp is known as the Diamond capital of the world.

Although Antwerp mostly controls the production and marketing of diamonds, there are also large diamond trading centers in the Indian cities of Surat and Mumbai. Israel is also a trade center that mainly supplies diamonds to North America. In the Middle East, Dubai is the region’s distribution hub. In the US, New York remains the primary port where diamonds are brought into the country and is currently the largest diamond market in the world. It is where an estimated 80% of the diamonds worldwide are sold.