Global Diamond Production Fell 23.4% by Volume, 32.2% by Value in 2009

Digging for diamonds, global production fell sharply in 2009

Russia was the largest global diamond producer in 2009, mining 34.8 million carats worth $2.34 billion or $67.34 per carat, according to just released figures by the Kimberley Process Certification Scheme (KPCS). Russia’s production was 28 percent of the world’s total production by volume and 27 percent by value.

2009 was an atypical year for the diamond industry, starting with a deep financial crisis that turned into a very active market with quickly rising rough diamond prices.

Global production, according to KPCS, was 124.8 million carats valued at $8.64 billion averaging $69.20 p/c. The impact of the economic crisis was a 23.4 percent drop in the volume of production, 32.2 percent in the value of the produced goods and 11.5 percent in the average per carat value.

The Russian production last year was somewhat shy of its output in 2008, 36.9 million carats worth $3.27 billion. Alrosa, the Russian diamond monopoly, said in November 2008 that it will not stop production due to the crisis, choosing to stockpile instead.

The Democratic Republic of Congo, the second largest producing country by volume in 2009, mined 21.3 million carats worth $225.8 million, or just $10.60 p/c.

In terms of value, Russia was followed by Canada, which mined 10.95 million carats worth $1.48 billion dollars or $134.75 p/c.

Botswana, once the leading source of diamonds, was the third largest producer by volume and value - 17.73 million carats worth $1.44 billion ($81.00 p/c).

The European Community, which incorporates Belgium and the UK, was the leading exporter of rough diamonds, 38 percent by value and volume. India was the leading importer of rough diamonds by volume - 119.7 million carats. The EC was the leading importer by value, $9.2 billion.