In this article, we will take a look at the 11 Diamond Mining Countries in the World by Carats. You can also check out 10 Cheap Alternatives to Diamonds For Engagement Rings for our discussion of the diamond industry.

The Evolving Diamond Market: Trends and Economic Impact

Diamonds are uniquely valuable due to their extreme hardness and exceptional thermal conductivity, making them the hardest known natural material, about 58 times harder than any other, according to Straits Research. This allows diamonds to excel in industrial applications, including use in cutting, drilling, and grinding tools, enhancing their efficiency and longevity. Industries such as construction, mining, and machinery manufacturing rely on diamond-tipped tools for their superior performance.

The global diamond market size was $97.10 billion in 2022, according to Emergen Research, and is expected to grow significantly in the coming years. It is projected to increase from $94.19 billion in 2023 to $138.66 billion by 2032, with a compound annual growth rate (CAGR) of 4.5% during the forecast period, according to Fortune Business Insights. Despite this growth, the market faces challenges such as the high cost of diamonds, which can restrict revenue expansion. Diamond prices are influenced by various factors including customer perception, rough diamond manufacturing, currency fluctuations, and changing consumer buying behaviors. These dynamics contribute to the fluctuation in diamond prices, impacting market growth trajectories.

Globally, diamond mine production in 2022 reached 120.2 million carats valued at US$16.3 billion. This marked a 1.3% increase in carats and a 26% rise in value compared to 2021 when it stood at 118.7 million carats valued at $12.92 billion, according to Kimberly Process. In terms of global reserves, industrial diamonds were estimated to total approximately 1.7 billion carats as of 2023. Russia holds the largest diamond reserves worldwide with an estimated 860 million carats, followed by Botswana with 280 million carats, making it the second-largest holder of diamond reserves as of 2023.

While Russia holds the title for the biggest producer and exporter of diamonds with its huge reserves and more than 12 open-pit mines, according to NS Energy, the United States has maintained its position as the leading consumer of polished diamonds. The country increased its share from 42% in 2014 to nearly 53% of global demand by 2022. Following closely, China ranks as the second-largest consumer in terms of value. Despite forecasts indicating a potential economic slowdown in the U.S., which is the largest market for diamonds, the outlook for the diamond market remains dynamic.

Some of the biggest names in the diamond industry, catering to the demand for this extremely valuable stone are De Beers S.A., Cartier and Harry Winston. While these renowned companies remain privately owned, there are also notable publicly traded companies such as Rio Tinto Group (NYSE:RIO).

Anglo American plc (LSE:AAL.L)

Anglo American plc (LSE:AAL.L) is one of the world’s oldest mining companies, engaged in mining diamonds, copper, platinum, and other metals. The company holds an 85% stake in De Beers Group, a leading diamond company. In the first quarter of 2024, Anglo American experienced a 23% decline in rough diamond production, primarily due to strategic adjustments aimed at reducing production in response to current market inventory levels. Consequently, the full-year production guidance for 2024 has been lowered to between 26 and 29 million carats, according to the recently released production report by the company.

Rio Tinto Group (NYSE:RIO)

Rio Tinto Group, established in 1873, is one of the world’s oldest mining companies, with a comprehensive global operation in diamond exploration, mining, and sales. In the first quarter of 2024, Rio Tinto’s diamond production at its Diavik Diamond Mine, the company’s sole remaining diamond operation, fell by 22% year-over-year. The mine produced 740,000 carats, down from 954,000 carats in the first quarter of 2023. This decline was attributed to a production pause as the company mourned the loss of four workers who tragically died in a plane crash in January 2024, according to National Jeweler.

Also see: 20 Countries That Produce the Most Gold in the World & 20 Biggest Iron Ore Mining Companies in Australia, 2024.

Methodology

Only 22 countries in the world engage in rough diamond production—also known as uncut, raw or natural diamonds. For the purpose of this ranking, we sourced data from Kimberly Process (an international certification organization) along with estimates by Dr. Ashok Damarupurshad, a precious metals and diamond specialist in South Africa. We then picked the top 11 countries with the highest rough diamond production in 2022 and ranked them in ascending order.

At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).

11. Tanzania

Rough Diamond Production: 375,533 Carats

Tanzania’s diamond extraction is primarily focused on the Williamson diamond mine, situated south of Mwanza in the northwest. The mine, with over 50 years of potential operational life, holds an estimated 38.1 million carats of diamond resources, according to Tanzania Invest. Petra Diamonds (LSE:PDL), owns 75% of the mine through its subsidiary Williamson Diamonds Limited, while the Government of Tanzania retains the remaining 25% ownership.

10. Sierra Leone

Rough Diamond Production: 688,970 Carats

In 2022, Sierra Leone emerged as the world’s tenth-largest diamond producer, with production increasing by 7% compared to 2021, according to Mining Technology. The country’s diamond output has shown a remarkable Compound Annual Growth Rate (CAGR) of 31% over the five years to 202. It is forecast to further grow at a more moderate CAGR of 2% from 2022 to 2026. Sierra Leone’s diamond exports regularly exceed $100 million, underscoring the sector’s important role in the national economy.

9. Lesotho

Rough Diamond Production: 727,737 Carats

Lesotho’s high-value diamonds come from the Maluti Mountains, notably the Letseng mine, renowned for producing exceptional gem-quality stones. In 2022, Lesotho’s diamond production reached approximately 700,000 carats, a significant increase of 1.33 times compared to the previous year.

8. Namibia

Rough Diamond Production: 2,054,227 Carats

Namibia, a leading diamond producer in southern Africa, mined 2.327 million carats of rough diamonds last year, marking a 9% increase from the previous year, as given by Energy Capital & Power. Land-based production saw a 14% rise, reaching 468,000 carats compared to 412,000 carats previously. However, in the fourth quarter, production declined by 13% to 151,000 carats.

7. Zimbabwe

Rough Diamond Production: 4,461,450 Carats

In 2022, Zimbabwe ranked as the seventh-largest diamond producer globally, with an annual output exceeding 4 million carats valued at $420 million, as given by the News. This output represented a 19.2% decline from 2021, despite a Compound Annual Growth Rate (CAGR) of 14% over the five years leading to 2021. Zimbabwe contributes 3% of global diamond production, though exports dropped by 21.89% in 2022 compared to 2021. Future projections suggest a modest production growth at a CAGR of 3% from 2022 to 2026, according to Mining Technology.

6. Angola

Rough Diamond Production: 8,763,309 Carats

Angola is Africa’s fourth-largest and the world’s sixth-largest diamond producer, with 2023 production reaching 9.8 million carats, according to Energy Capital & Power. The country aims to increase output to 14.6 million carats in 2024, a target that hinges on attracting more foreign investment. Angola’s diamond reserves are estimated at approximately 600 million carats, with proven reserves extending up to 600 meters deep, according to The Energy Year.

5. South Africa

Rough Diamond Production: 9,660,233 Carats

South Africa continues to be a key player in the global diamond industry, contributing 9% of the world’s diamond supply. Known for the iconic Kimberley mines, which have historically been a major source of high-quality diamonds, the country remains a leading diamond producer. South Africa’s diamond production is projected to increase at a Compound Annual Growth Rate (CAGR) of 7% from 2022 to 2026, according to Mining Technology.