In this article, we’ll discuss the leading diamond producing countries and the global dynamics of gem-quality diamond mining. If you want to skip the details of the diamond industry, read Top 5 Diamond Producing Countries in the World.
According to Allied Market Research, in 2022, the global diamond market was valued at $100.4 billion, with projections indicating an increase to $155.5 billion by 2032. This forecast suggests a compound annual growth rate (CAGR) of 4.5% from 2023 to 2032. Similarly, the market value for lab-grown diamonds worldwide stood at $22.3 billion in 2021. It is expected to expand to $55.6 billion by 2031, exhibiting a CAGR of 9.8% from 2022 to 2031, also per Allied Market Research.
The market for lab-grown diamonds is undergoing significant growth, propelled by advancements in production technology and evolving consumer values. As these diamonds are generally 30-40% less costly than naturally mined diamonds, they hold considerable appeal for cost-conscious consumers. A 2021 report from MVI Marketing revealed that approximately 70% of millennials would consider a lab-grown diamond for an engagement ring, indicating a shift in generational attitudes.
But despite this, the allure of natural diamonds persists, deeply rooted in tradition and bolstered by the marketing heft of industry giants. According to a study by De Beers, a subsidiary of Anglo American Plc (LSE:AAL.L), natural diamonds continue to possess a profound emotional and aspirational charm, with many consumers viewing them as inherently valuable and prestigious. Therefore, despite the rising popularity of lab-grown stones, the top diamond producing countries are likely to maintain a profitable position in the market.
Also See: 20 Countries with the Largest Gold Reserves in 2023
Ban On Russian Diamonds in the Talks
Discussions are underway about a potential ban on Russian diamonds, with reports indicating that the G7 countries are considering prohibiting the import of Russian diamonds into their markets. Four proposals on this matter have been put forward — by Belgium, India, a French gem trade company, and the World Diamond Council. India, despite being unwilling to abandon its over half-a-century-old ally, also seems to agree to the ban terms. Notably, the sanction’s terms are currently under review, though the schedule for a decision remains uncertain.
Such a ban could have a significant impact on Russia’s diamond exports, as the G7 nations — comprising the US, Canada, Japan, Germany, the UK, Italy, and France — make up approximately 70% of the world’s diamond purchases. The potential embargo could disrupt the supply chain, given Russia’s status among the major diamond producing countries and its 30% share in the global market.
For the ban to be effective, there must be a consensus on the definition of diamond traceability to ensure the origins of diamonds can be verified. The primary points of contention among the proposed strategies are the criteria for entry of diamonds into G7 markets, the methods for verifying their Russian origin, and the ramifications for failing to comply with the established regulations.
Recent updates indicate that Belgium and India are lobbying for diamonds to be routed through their respective trading centers in Antwerp and Mumbai, aiming to preserve their leading roles. In contrast, the World Diamond Council is recommending a less stringent, self-regulatory approach, while the French company is advocating multiple entry points for Russian stones to enter the big markets.
The World Diamond Council has announced that leaders from numerous jewelry and gemstone associations have voiced their support for the G7 Diamond Protocol at the 2023 CIBJO (World Jewelry Confederation) Congress’s inaugural session. This endorsement is likely to strengthen the initiatives to limit the import and trade of rough and polished diamonds originating from Russia.
The United States has already sanctioned Alrosa, the Russian state-owned diamond company. However, the sanction’s impact is limited without a worldwide embargo. Notably, the esteemed jeweler Tiffany & Co. has also stopped sourcing diamonds from Russia and has instructed its suppliers to separate Russian diamonds from those from other sources to avoid purchasing Russia’s stones.
De Beers, owned by Anglo America plc (LSE:AAL.L) is a leading competitor of Alrosa and endorses the World Diamond Council’s proposal but emphasizes the importance of involving other top diamond producing countries to amplify the ban’s effect.
Reaching a consensus on the embargo is challenging due to the potential economic repercussions it could have on prominent diamond trading centers such as Belgium, India, or the US. Therefore, although the details of when and how the ban will be implemented remain unclear, it is evident that excluding a significant player like Russia from the market will lead to supply chain disruptions.
Also Read: 20 Countries With the Largest Copper Reserves in the World
Developments in Diamond Mining
Diamonds are rare and valuable, and unlike bulk commodities that are traded on open markets, they are sold through a more controlled supply chain. For instance, De Beers, a subsidiary of Anglo American plc (LSE:AAL.L), has historically stockpiled diamonds to regulate market supply. The company maintained market stability by purchasing diamonds from other producers and withholding them from the market, thus ensuring a limited supply.
Consequently, this strategy helped keep prices stable and high, even amidst fluctuating demand. When demand declined, De Beers would constrict supply further by releasing fewer diamonds. In contrast, when demand increased, the company would release more from its reserves. This market influence was feasible because De Beers once commanded between 80-90% of the rough diamond market share.
However, De Beers’ control over the diamond supply chain has become more flexible, with companies like Rio Tinto Group (NYSE:RIO) expanding their presence. A significant 2021 development saw Rio Tinto Group (NYSE:RIO) become the sole proprietor of the Diavik Diamond Mine in Canada’s Northwest Territories, thereby asserting a dominant position in the Canadian diamond market. According to Rio Tinto Group (NYSE:RIO), the Diavik mine’s output in Q2 2023 was approximately 970,000 carats of diamonds, a decrease from the 1.1 million carats in Q2 2022 but an increase from 954,000 carats in Q1 2023. The mine produced a total of 4.7 million carats in 2022, with the reduced yield attributable to the ongoing underground pipe construction.
In another significant development, Debswana Diamond Company Ltd., a joint venture between the Botswana government and De Beers Group, launched the first-ever 5G-ready smart diamond mine at its Jwaneng site, utilizing Huawei’s innovative mine solution in December 2021. This system, replacing an outdated one with limited range and poor interference resistance, operates on a 4G eLTE private network. It ensures stable, real-time data transmission between mining vehicles and equipment. This innovation is a foundation for subsequent 5G upgrades to facilitate high-speed, low-latency technologies such as autonomous vehicles, propelling the mining industry toward a more digitally intelligent future. Further developments like this could allow leading diamond producing countries to benefit more from their minerals.
Also Read: 20 Countries With Highest Gold Consumption By Year
Let’s now discuss the top countries in diamond production!
Top 20 Diamond Producing Countries in the World
Our Methodology
We consulted the Kimberley Process Rough Diamond Statistics to identify the countries with the highest diamond production and focused on the output of gem-quality diamonds to compile our list. Upon determining the production volumes of the leading diamond producing countries from 2018 to 2022, we calculated their average to establish our final rankings and to present a comprehensive view of these countries’ diamond extraction activities over the years.
Note: Industrial and gem-quality diamonds have distinct properties and value. For this research, our sole focus was on gem-quality diamonds.
Based on our findings, here are the countries that produce the most diamonds:
20. Republic Of Congo
Average Annual Diamond Production: 13800 carats
In the Republic of Congo, diamond production is both a source of wealth and a point of contention. The industry is primarily based around the vast open-pit mines located in the southwest region, adjacent to the border with the Democratic Republic of Congo. Notably, the country’s mining sector has faced scrutiny over environmental and labor issues.
Nevertheless, recent years have seen the government making significant efforts to enhance regulation and promote responsible industry practices. The Congolese diamond sector participates in the Kimberley Process, an international certification scheme that regulates trade in rough diamonds. Be noted that the Kimberley Process aims to prevent the flow of conflict diamonds, which are diamonds mined in war zones and sold to finance armed conflict against governments.
19. India
Average Annual Diamond Production: 19575 carats
India has the world’s largest diamond cutting & polishing industry and processes about 90% of the world’s rough diamond supply. The country has a strong foothold in the diamond supply chain alongside its small-scale mining operations, especially in the Panna region. Indian mines tend to be smaller and less mechanized than those in other major diamond producing countries.
Remarkably, India is the world’s largest importer of diamonds by both volume and value. As per the Kimberley Process, in 2022, India imported diamonds worth $18.76 billion, constituting 40% of the global diamond imports valued at $46.9 billion. Additionally, India ranks among the countries with the largest gold reserves, holding 797.44 metric tons in 2023.
18. Ghana
Average Annual Diamond Production: 52080 carats
The diamond production industry in Ghana has seen various phases of activity, with a history extending to the early 20th century. The Akwatia diamond field in the Eastern Region has historically been the most significant site, though production has waned in recent years. Revitalizing the older mines has become a priority. Ghana is committed to formalizing its artisanal mining sector and enhancing sustainability practices. The Kimberley Process reports that Ghana’s diamond exports reached $660 million in 2020, continuing a downward trend as reserves diminish. From 2004 to 2014, the country’s annual diamond exports averaged $17 million, subsequently decreasing due to reserve depletion and the rise of synthetic diamonds.
17. Guyana
Average Annual Diamond Production: 54070 carats
Diamond mining in Guyana is closely linked with its gold mining industry, with both resources typically found in the alluvial deposits. The mining sector is a mix of state-controlled and smaller private operations, with a significant contribution from artisanal miners. Along with being one of the top bauxite-producing countries, Guyana is a recognized diamond exporter, with diamond export revenues averaging $10 million, according to the Kimberley Process.
16. Central African Republic
Average Annual Diamond Production: 62750 carats
The period between 2004 and 2012 was particularly prosperous for the Central African Republic’s (CAR) diamond extraction industry, with exports consistently exceeding $40 million. However, the sector has seen a downturn in exports due to political instability and conflict. Rebel groups controlling diamond-rich territories led to CAR’s temporary suspension from the Kimberley Process. Despite these difficulties, the country boasts abundant alluvial diamond fields in its western and eastern regions and is among the world’s biggest diamond producing countries. Current initiatives are focused on increasing transparency and improving governance within the sector, aiming to establish legitimate trade channels for CAR’s diamonds.
15. Brazil
Average Annual Diamond Production: 0.168 million carats
Historically overshadowed by its extensive gold reserves, Brazil’s diamond industry has experienced a resurgence due to the discovery of new kimberlite pipes in the state of Minas Gerais. Brazilian diamonds are sourced from primary deposits, such as kimberlite pipes, and secondary deposits in riverbeds where alluvial mining is prevalent. The country’s diamond exports peaked at $59 million in 2017 and currently stand at $26 million, according to the Kimberley Process.
14. Guinea
Average Annual Diamond Production: 0.210 million carats
In Guinea, diamond extraction is primarily alluvial, with deposits spread across the country’s interior regions. Despite political instability and governance challenges, diamonds remain a vital component of the mineral economy. Like many other major diamond producing countries, Guinea’s diamond industry experienced consistent growth in the past decade but has recently decelerated. Guinea’s diamond exports currently stand at $8 million, down from $66 million in 2008. A significant portion of diamonds is smuggled out of the country and, consequently, is not officially recorded as exports. Consequently, the country’s export volume remains constrained despite sufficient production levels.
13. Tanzania
Average Annual Diamond Production: 0.274 million carats
The diamond industry in Tanzania centers around the Mwadui mine and benefits from a geological context that supports primary and alluvial deposits. There has been a transformation in the industry as the government takes a more active oversight role, aiming for equitable distribution of financial benefits. According to the Kimberley Process, diamond exports brought in approximately $74 million in 2019 and $81 million in 2018, with a slight decrease to $63.1 million in subsequent years.
12. Liberia
Average Annual Diamond Production: 0.303 million carats
Historical conflicts have hampered Liberia’s ability to leverage its diamond resources, but post-conflict reforms have led to better governance and adherence to the Kimberley Process. Diamond mining operations are mostly small-scale, emphasizing sustainable economic development. Diamond exports from Liberia fluctuate between $10 million and $15 million annually, depending on market conditions.
11. Sierra Leone
Average Annual Diamond Production: 0.744 million carats
Sierra Leone’s diamond mining sector is closely linked to the country’s history of civil conflict. Following the war, reforms under the Kimberley Process have been instituted, and the country’s diamond exports routinely surpass the $100 million mark. The sector now comprises artisanal miners and formal operations, playing a significant role in the national economy.
10. Lesotho
Average Annual Diamond Production: 0.79 million carats
Lesotho stands among the top diamond producing countries in the world, with annual exports exceeding $200 million. The country’s high-value diamonds are sourced from the Maluti Mountains, including the noteworthy Letseng mine, celebrated for its exceptional gem-quality stones. The diamond industry is pivotal to the economy and attracts considerable foreign investment, with the government endorsing responsible mining practices.
9. Namibia
Average Annual Diamond Production: 1.9 million carats
Namibia’s diamond industry is distinctive, with its offshore marine diamond mining operations complementing terrestrial mines. The diamonds from Namibia are frequently of high quality, and the industry operates as a joint venture between the government and private sectors, exemplifying a public-private partnership focused on value creation. The Ministry of Mines and Energy in Namibia has stated that the government intends to acquire stakes in diamond mining companies to leverage the country’s mineral wealth further while maintaining their operational integrity.
8. Zimbabwe
Average Annual Diamond Production: 3.34 million carats
Zimbabwe ranks among the major diamond exporters, surpassing $100 million annually. Notably, Zimbabwe experienced a surge in diamond exports from 2010 to 2014, after which there was a decline. The diamond sector, centered around the Marange diamond fields, has faced international scrutiny due to allegations of human rights abuses. In an effort to enhance transparency, the government has sought to consolidate diamond mining operations under the Zimbabwe Consolidated Diamond Company (ZCDC).
7. Australia
Average Annual Diamond Production: 7.6 million carats
Historically, Australia’s diamond production was dominated by the Argyle mine, which, for a period, was the world’s largest diamond mine by volume. It was renowned for its high output and as a significant source of rare and highly prized pink diamonds. However, with the Argyle mine’s closure in 2020 due to the depletion of economically viable resources, Australia has not recorded diamond production since then, according to the Kimberley Process.
6. Angola
Average Annual Diamond Production: 8.79 million carats
Angola is among countries blessed with abundant natural resources, and approximately 30% of its GDP comes from these treasures. The country’s robust diamond industry is largely supported by the Catoca diamond mine, one of the largest diamond mines in the world, in the Lunda Sul Province, which accounts for roughly 75% of Angola’s diamond production.
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Disclosure: None. Top 20 Diamond Producing Countries in the World is originally published at Insider Monkey.