Value Up, Volume Down - Global Rough Diamond Production in 2011

Diamond miners may have decreased production in 2011, but the value of their output increased considerably. In their annual results, most diamond miners reported price increases of up to 20 percent , but the stated value of mined goods leaped 26.5 percent, according to Kimberley Process (KP) figures.

The total value of global diamond production was stated at $14.4 billion, compared with $11.39 billion in 2010 and $8.26 billion in 2009. At the same time, the volume of production declined 3.4 percent to 124 million carats in 2011. This compared to 128.3 million carats in 2010 and 122.2 million carats in 2010.

The KP figures show that global production is not growing in volume, however demand is driving up prices. And while the global diamond market is currently experiencing a decline in polished and rough prices, the long-term forecast is for global production to remain within a narrow range of 122 to 125 million carats over the next few years with the value of production continuing to increase.

Botswana's production increased to 22.9 million carats, worth $3.9 billion. This was a 4 percent increase in volume and a staggering 50.9 percent leap in value. The increase may, however, reflect a new way De Beers and Botswana calculate the value of production.

Russia's production of 35.1 million carats increased 0.8 percent while its value increased 12.3 percent to $2.67 billion. These figures closely correspond with Alrosa's 2011 results.

The Democratic Republic of Congo (DRC), the third larges diamond producing country by volume, saw its production decline by 4.5 percent to 19.3 million carats. The value of this production increased 3.1 percent to $179.6 million. 

Canada, the third largest producer by value, witnessed its production shrink by 8.5 percent to 10.8 million carats worth $2.55 billion – a 10.6 percent year-over-year increase in value as the average value of its production increase 21 percent year-over-year.

Rough diamond imports, according to KP, decreased 7.1 percent by volume and 34.9 percent by value to 384.5 million carats worth $50.89 billion. The leading rough diamond importers by value were the European Community, which includes London and Antwerp, India and Israel. Together the three accounted for nearly three quarters (74.9 percent) of all rough diamond imports.