Global diamond supply
- Global rough diamond supply decreased 2% in 2018 largely due to mine closures and lower output towards the end of mine lives. 2017 production was also respectively high as a result of a number of projects coming on stream in late 2016.
- The world’s largest diamond mines are maturing and past their peak production levels
- Potentially the world has already seen peak diamond production of circa 177 Mcts in 2005
- The success rate in diamond exploration is estimated as less than 1% and there have been no major new finds for over 20 years
- A number of mines came on stream in late 2016 – namely Gahcho Kue and Renard in Canada and Liqhobong in Lesotho, however these are not ‘new’ projects (Gahcho Kue was first discovered in 1997, Renard in 2001 and Liqhobong in the 1950’s)
- The Argyle mine is set to close towards the end of 202, removing ca. 14 Mcts of annual production; it is currently the producer of ca. 90% of the world’s pink diamonds.
- In addition, Voorspoed in South Africa ceased operations in December 2018 and the Victor mine in Canada reached the end of its life during Q2 2019.
- Supply forecast to steadily decrease to around 120 Mcts in 2030.
World Diamond Mines
A key characteristic of diamond deposits is their scarcity, in contrast to many other commodities, and there are just 30 significant diamond mines in production today. Only seven mines in the world are considered to be Tier 1 deposits (+US$20 million Reserves).
To date, the most important discoveries (other than Argyle in Australia) have clustered into three regions of the world: southern Africa, Siberia, and western Canada.
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