The Rough With The Smooth: Rough Diamond Supply
March 07, 11
Diamonds may still well be forever, but unfortunately their supply is not. While there are still plenty of diamonds to go around, there is no doubt that supplies are finite and will come to an end, one day.
Images: Rio Tinto and Shear Diamonds
However, it is not all doom and gloom. A number of mining companies are already making extensive changes to extend the life of their existing mines. In addition, exploration companies are busy looking for the next mother lode that will ensure supply keeps in line with growing demand. Further, previously under-exploited resources, such as Zimbabwe’s Marange region, are being tapped. Once its current problems are sorted out, Zimbabwe could well become one of the biggest diamond producers in the world.
While it may seem solely an upstream concern, the availability, or lack thereof, of diamonds, coupled with the prices paid, for them directly impact everyone lower down the pipeline, from manufacturers, retailers and ultimately consumers.
In this issue, we take a look at some of the new resources potentially coming online in Canada and India and also examine why various miners are taking their pre-existing mines underground. We also analyse the extremely important issue of rough diamond prices and explain just why diamond mining companies seem so in favour of offering their goods at tender. All in all, we take the rough with the smooth as we explore the issue of rough diamonds.