Diamonds Hot Spots From Across the World

Diamonds are sourced from a number of key regions in the worlds. Like any other precious gemstone, a diamond is valued for its rarity. This is partly a consequence of the difficulty of locating these diamond-rich sources, followed by the arduous process of mining for these gemstones, with the numerous infrastructure requirements and logistical challenges this poses. Whilst the true extent of the diamond sources in the world are not known, and the capacity for present society to study and bring to the surface these rarities from other, yet undiscovered locations, lies in the future. However, over the course of its history, diamonds based on the geological locations from which they are have been sourced have come to be identified with a number of key regions. Here is a list of these key countries and regions within the nation that have to build up a reputation for their diamond mining heritage.

Top Diamond Producing Countries

1. Australia 

2. Angola

3. Botswana

4. Brazil

5. Canada

6. The Democratic Republic of the Congo

7. Namibia

8. Russia

9. South Africa

Top Mines by Country

1. Australia- Argyle Mines

Main Feature: Home of the rare fancy coloured diamonds, notably the world-renowned Argyle pink diamonds. At one point the most product diamond mine in the world. Neared its production cycle in 2020.

2. Angola- Catoca Diamond Mine

Main Feature: Fifth largest diamond mine in the world. Involves combined ownership with Russian, Chinese and local state ownership.

3. Botswana- Jwaneng Diamond Mine

Main Feature: Considered to be the richest diamond mine in the world. Controlled by the partnership involving De Beers, the world’s largest diamond mining company, and the Botswana government. Working having started in 1982, production is set to continue decades into the future, with new additional plants being built.

4. Brazil- Minas Gerais (General Mines)

Main Feature: Known for its large sized stones and in some case rare discoveries of pink diamonds.

5. Canada- EKATI Diamond Mine

Main Feature: A new entrant to the diamond industry. The home of major diamond mines, like the Ekati, which was once a leading diamond producer. The country’s geography has enabled the discovery of new diamond sources.

6. The Democratic Republic of the Congo

Main Feature: Vast untapped natural resources, full potential yet to be realized. Work is predominantly labour intensive, with large investments in machinery forthcoming.

7. Namibia- Marine Diamonds

Main Feature: Many of the country’s rich diamond deposits are found in marine and water-based environments. The country’s diamond production goes back a century, with growing investment in diamond mining ships and support infrastructure is being made to tap this vast diamond resource.

8. Russia- Mir Mines

Main Feature: Once one of the largest diamond mine in the world, and among the largest man-made pits, was a key driver in Russia’s emergence as a top diamond producer in the past few decades. Set to reopen operations in 2024

9. South Africa- Cullinan Diamond Mine (Premier Mine)

Main Feature: The country where the diamond trade took off as a global industry. The Cullinan diamond mine began operations in 1903 and has been a top source of extremely rare blue diamonds. Following the acquisition of a stake by the American company Petra Diamonds, further mining expansion projects were initiated.

_{World Map of Diamond Imports (Source - HowMuch.net, a financial literacy website)}

Leading Locations for Diamond Trade

The diamond trade is not all about mining, shaping, cutting and later the selling of fine jewellery. A lot of work happens around the processes that underlie the more visible aspects of the trade in the gemstones. Diamonds are precious gemstones that command great value, however, the process of bringing them to market is a complex one, involving a number of stakeholders. Hence facilitating the trade of diamond involves a number of legal, logistical and financial consideration, which requires the necessary legal and institutional framework. To enable this a number of countries have taken on the role of trading or exchange hubs. It is important to note that these countries are not necessarily diamond mining hotspots when it comes to diamond sources. In fact, the main players in the diamond trade do not come from these major diamond mining locations. The reasons for this will become clear as we engage the three main diamond trading hubs in the world.

London (England)

It is interesting that London as a city is often more recognized than the country it is located in. London as a top trading hub goes back to the very start of the diamond trade when things began to expand during the start of the diamond mining rush around the later part of the 20th century, with the African continent being the main hot spot. The rise of Africa, notably the southern part of the continent in the diamond trade was partly a consequence of empire, with the colonial expansion of Britain being a key driver. The rise of London, as the great capital of the British Empire, was a natural destination. The works of Cecil Rhodes, a pioneering force in the rise of the trade, was a key factor in this process. Whose expertise in finance naturally combined well with the strength of London, which was then the world’s top financial centre. Following the success of the diamond trade with the major diamond companies, notably the London based De Beers Group, which acted as a virtual monopoly in the trade. All of these factors contributed to the emergence of London and the home country England, the U.K as a top diamond trading hot spot.

India

If someone told you that India, the large country from the Subcontinent, that is not known for its diamond reserves, has the largest diamond exchange in the world, you are not likely to believe it. Located in India’s financial capital Mumbai, the Bandra-Kurla Complex where the Bharat Diamond Bourse (BDB) resides came into being just over a decade ago. In an area built over two million square feet, the BDB contains, in addition to thousands of offices, dedicated housing and many other facilities for those are involved with its trade (1). The truth is India, over the decades has built up a strong presence in the trade of diamonds. India’s rise has been driven by the industry of India’s merchants, who have learnt the trade from Belgian and Israeli traders applied their expertise both locally and in their trading with international stakeholders, combined with the steady growth in local demand for diamonds fuelled India’s rise. With companies like Rosy Blue, an India-Belgian company leading the way. It may surprise you further to know that India was the largest exporter of polished diamonds in the world, ahead of all other diamond producing, cutting, jewellery making nations (2). This was built on the back of a strong business environment with a large and skilled workforce, government support programmes and global demand for Indian cut diamonds.

Israel

Israel is an interesting addition to this list, since it, like the U.K and India are not sources of natural diamonds. Israel’s position in the diamond trade has been a consequence of its strong presence in the diamond trade at the value addition levels: cutting, shaping, polishing and jewellery design. Given its strength in a diamond design, fine jewellery making expertise and relationship with the United States-a major source for cut diamonds-Israel became something of a niche, but the expansive market for top quality diamond products. Over the years Israel, built on the strength of a number of Israeli diamond companies, and its favourable economic environment, made the country a key player in the business. With the diamond exchange district of Ramat Gan in Tel Aviv becoming a global centre for trade.

Factors that Determine the Flow of the Diamond Trade

The diamond trade around the world, like any business, is governed by the laws of supply and demand. The centre of gravity of the trade either in gemstones or fine jewellery-a key driver in the movement of diamonds-is a product of the strength in the demand for diamonds, which is reflected in the level and growth of diamond exports and imports of the country. Some of the countries that are not on this list: Hong Kong, Belgium, U.A.E are among the top diamond importers in the world, and have built their reputation on the basis of local demand, but also on the favourable institutional environment they have created for international trade in diamonds. So it is interesting that many of the key players in the diamond trade are not exactly diamond producing nations but have tapped into the local demand and have taken advantage of the institutional environment to help it grow. Another key factor that is worth pursuing is the quality of the diamond that is being traded between countries. To summarise the key factor driving the trade in diamonds around the world are:

• The presence of the right institutional environment for diamond

• Strong and growing local demand for diamonds

• Expertise in developing diamond jewellery

• Large and/or newly discovered diamond reserves

• Strong financial sector

References

1. https://howmuch.net/articles/world-map-of-diamond-imports

2. https://www.rough-polished.com/en/analytics/119913.html