In this article, we will take a look at the Diamond Mining Country in the World by Carats. We have also compiled a full free list of the 11 Diamond Mining Countries in the World by Carats.
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.
A stunning jewelry display with diamonds and gold, highlighting the company’s commitment to quality.
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 countries with the highest rough diamond production in 2022.
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1. Is Russia the Biggest Diamond Mining Country in the World by Carats?
Rough Diamond Production: 41,923,910 Carats
The diamond industry in Russia is of immense global significance, with the country being the world’s largest diamond producer, accounting for approximately 31% of global production, according to Lupicinio. In 2023, Russia produced 38.15 million carats of diamonds, reflecting a Compound Annual Growth Rate (CAGR) of 6.95% from 2020 to 2023, as given by Global Data. Russian diamond miners generate annual revenues of around $4.5 billion, underscoring the sector’s substantial economic impact.
You can see the full free list by going to the 11 Diamond Mining Countries in the World by Carats.
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Disclosure: None. This article is originally published at Insider Monkey