Diamond Mining Market Analysis including Reserves Production
The global diamond reserves were found to be 1.4 billion carats (Bct) as of January 2021. More than 85% of these are located across Russia, Botswana, the DRC and South Africa. In the past couple of years, Australia has lost its number one spot in terms of diamond reserves to Russia, owing to depleting ore reserves and closures.
The global rough diamond production is expected to recover by 1.4%, to reach 112.99 million carats (Mct), in 2021, after registering an estimated 19% decline in 2020. With potential diamond mines, Botswana, Canada and the DRC are also expected to remain prominent suppliers of rough diamonds to global markets. In contrast, production will completely cease in Australia, owing to the closure of the Argyle mine, which closed in November 2020.
In 2020, the COVID-19 pandemic hammered the global diamond market, which was already undermined due to several factors such as the then-ongoing US-China trade war and political instability in Hong Kong that is one of the chief locations for trading diamonds. As a result of the pandemic, operating activities and cross-border movement were severely disrupted.
Production over the forecast period (2021-2025) is expected to grow at a CAGR of more than 2%. Russia, which holds some of the world’s largest diamond deposits, is expected to remain the world’s largest supplier.