The need for significant capital investments will be the main trend in the diamond mining industry in 2021-2030

The prospects of the diamond industry in the post-crisis period are discussed by the Rough&Polished correspondent with Sergey Mityukhin, Candidate of Geological and Mineralogical Sciences, Honored Geologist of the Russian Federation.

06 july 2020

Young Diamantaires: We create initiatives for the benefit of diamond communities worldwide

The World Federation of Diamond Bourses recently launched its Young Diamantaires website. The organization has worked for the past four years with young members of the diamond community all over the world to create a platform through which they can express...

29 june 2020

Those who implement the right anti-crisis strategies have more chances

It is not surprising that because of the pandemic and the crisis, the most heated debate in the jewellery industry is about what is happening and the possible ways of survival. Irina Slesareva, an expert, art director of the Russian Diamond Line contest...

22 june 2020

The secondary diamond market in Russia is not mature although its prospects are huge

Pavel Barannik, the founder and head of the Moscow Gemological Laboratory, the founder of the Gemological Institute and President of the Moscow Diamond Club, graduated from the Gemological Institute of America (GIA). He is an expert and consultant...

15 june 2020

Johan Erikson: The industry needs to spend more on advertising and marketing

First Element is a fully independent Diamond Services Company registered in Belgium, Botswana, South Africa and Dubai. First Element is committed to providing a world class diamond service aimed at adding value to the entire supply chain, from the daily...

08 june 2020

Diamond production in Russia and Yakutia in 2008-2019

29 june 2020

Given the slowdown in rough diamond production of mining companies across the world caused by the coronavirus pandemic, it seems interesting to see how diamond mining has developed over the past decade.

Diamond production in the Russian Federation by diamond-mining regions and enterprises in 2008-2018 is shown in Table. 1.

Table 1

Diamond production in the Russian Federation by diamond-mining regions and enterprises in 2008-2018, $ million

analyt_15062020_eng.png

According to the above figures, the Russian Federation and the Republic of Sakha (Yakutia) produced rough diamonds to the amount of $ 3,842 million and $ 3,294 million respectively in 2018. Thus, the annual decline in diamond production reached 9.5% in Russia and 13.9% in Yakutia.

Decrease in diamond production in Russia in the first half of 2019

In 2019, the pressure from lab-grown diamonds increased and production of natural diamonds started to decline. According to the Kimberley Process data for the first half of 2019, the Russian Federation produced 19.46 million carats of diamonds worth $ 1 907.9 million. This is less than in the second half of 2018 by 18.1% in terms of carats and by 6.6% in terms of value.

Prospects for diamond mining in Russia in 2020

The lower prices of synthetic diamonds compared to natural diamonds, as well as the market advantages associated with ethics and sustainability, have significantly affected the minds of buyers. In addition, a less obvious factor also contributes to the promotion of artificial diamonds - the profit they provide to retailers. Analysis of wholesale and retail prices for unbranded synthetic and natural diamonds revealed that the gross retail profit from popular carat sizes of synthetic diamonds is 1.8 times higher versus natural diamonds.

Given the decline in production due to the coronavirus pandemic, it seems obvious that diamond production in the Russian Federation and the Republic of Sakha (Yakutia) in 2020 will be reduced even more.

Yury Danilov, Ph. D., independent expert and analyst