Diamonds are more than just gemstones that make a stunning piece of jewelry – they play a significant role in various fields. If you think that diamonds are extracted just to be made into necklaces or rings, you are wrong – this mineral is used in the manufacturing of computer processors, construction, mining, oil and gas extraction, machinery production, and transportation, among others.
Scientists are discovering even more advanced uses for nanodiamonds (extremely tiny diamond particles) in technological areas such as super lasers, surgical instruments, medical equipment, and even quantum computing.
The world market for diamonds was estimated to be US$94 billion in 2023 and is expected to increase at a Compound Annual Growth Rate of 4.5%, hitting US$138 billion in 2032.
The impact of diamonds on economic development
Globally, industrial applications, including operations such as cutting, drilling, grinding, and polishing account for about 50% of all diamond use.
For many countries, the significance that the diamond industry has on their economy is undeniable. Diamond operations create jobs in mining nations and frequently serve as a major source of income for local communities.
The diamond industry encompasses various global operations, including mining, retail, jewelry manufacturing, polishing, and cutting. These activities support jobs and livelihoods worldwide, creating a complex web of economic interconnections.
Millions of people – miners, cutters, polishers, and retail workers involved in the sector – depend on the natural diamond industry for their livelihoods.
Which countries are the biggest diamond producers?
Unsurprisingly, a great deal of naturally occurring gem-quality diamonds originate in nations whose populations (for the most part) do not buy a lot of diamond jewelry. For example, several African nations have been the largest sources of diamonds since the 19th century.
However, over the last few years a number of other nations outside Africa have managed to feature on the list of major diamond producers. This includes Russia and Canada – currently the first and third largest diamond producers.
Source: Statista
It’s worth noting that in 2023, the global production level of diamonds fell by 8% compared to 2022, reaching 111.52 million carats or 22 tons (1 carat = 0.2 grams). The decline was caused by a reduction in demand from cutters and weak sales.
- Russia tops the list with a production level of around 37.32 million carats in 2023 – an 11% decrease from the previous year.
- Botswana, the second-largest producer, mined 25.1 million carats, which is a 2% drop from 2022. In the same period, Angola (4th largest producer) registered an 11% drop in diamond production, with a figure of 9.75 million carats.
- Canada has also registered a drop of 2%, registering production of 16 million carats.
Let’s take a closer look at the top three diamond-producing nations:
1. Russia
Production: 37.32 million carats
Russia is currently the world’s leading producer of gem-quality diamonds by carat weight and has held this leading position for more than 10 years, producing around 32% of the world’s total mined diamonds.
PJSC Alrosa is the biggest diamond mining enterprise worldwide. More than 90% of all diamonds produced in Russia come from this joint stock company, with the state having a 66% shareholding.
The discovery of diamond deposits in Russia dates back to the 18th century. In 1957, the Mir kimberlite pipe and nearby placer deposits were the source of the first significant quantities of diamonds.
Biggest mines: Mir Diamond Mine (currently out of operation), Udachnaya and Aykhal
Currently, the Mir, Udachnaya, and Aykhal kimberlite pipes in the Siberian Republic of Sakha are home to a vast majority of Russia’s diamond mines.
Production has halted at Mir, the largest mine, due to an accident that led to the site flooding, but PJSC Alrosa hopes to resume working the mine after 2030.
2. Botswana
This African nation’s mining industry has always been vital to its economy, and it has been its major industry since the 1970s. Due to the high quality of its diamonds, Botswana is the world’s top producer of diamonds by value.
Today, diamond mining is the main driver of the country’s economic activity, making up 17% of its GDP and 80% of its exports.
Biggest mine: Jwaneng Mine
The mine’s full production started in July of 1982, but the official inauguration took place two years later. Debswana, the company that owns the mine, is a joint venture between the country’s government and the British-South African business, the De Beers Group.
3. Canada
The Ekati mine located in the Northwest Territories produced its first diamonds in 1998, marking the start of diamond mining in Canada. After a few more mines started to operate in the country, Canada became a major global diamond producer.
Biggest mine: Gahcho Kué
Located south of the Arctic Circle, Gahcho Kué, a remote site that can only be reached by air, began operations in 2016. Mountain Province Diamonds, a Canadian diamond firm, runs the mine in a joint venture with De Beers, which owns 51% of the company’s shares.
The operational lifespan of the mine has been extended until 2030 due to additional resources having been found in 2018.
Final word
The production of diamonds is significant for those regions where these are mined, as well as for a wide range of industries where diamonds are used. In addition to jewelry production, this includes medical, technological, and construction sectors.
Mining activities not only offer a boost to local economies, they also have a substantial effect on adjacent industries such as the cutting of gemstones and the manufacture of jewelry.
