Diamonds dug in Botswana are still of the highest quality and the most valuable in the world, despite having cut down on production since 2009, data released this week [July 30-August 5] by Kimberley Process (KP) show, Brian Benza says on www.mmegi.bw.
According to the KP, Botswana retained its perch as the top diamond producer by value in 2011 as the value of the gemstones dug in the country rose by 45 percent to P1,277.67 ($170.36) per carat in the year.
In the same year, Botswana mined 22.904 million carats valued at $3.9 billion. However, Russia was the top producer by volume in the year with output of 35.139 million carats valued at $2.67 billion, as the average price of its production rose 11 percent to $76.12 per carat.
Botswana, through Debswana, which is jointly owned by De Beers and the government, reached peak production in 2006 at 34 million carats followed by 33 million carats in 2007 and 32 million carats in 2008 before cutting output rapidly to 17.7 million carats in 2009 due to the global economic down turn.
"Global diamond production rose 26 percent to $14.41 billion in 2011 as rough diamond prices soared during the year. By volume, production fell 3 percent to 123.99 million carats. The average price of production rose 31 percent to $116.19 per carat," said the KP in a report.
In 2010 Global rough diamond production rose 39 percent by value to $12 billion.
For 2011, Canada ranked third with production of 10.795 million carats valued at $2.55 billion as prices there rose 21 percent to $236.30 per carat. South Africa came in fourth after mining 8.205 million carats valued at $1.73 billion- $210.88 per carat, followed by Angola where production of 8.328 million carats was valued at $1.16 billion, or $139.60 per carat.
Other top diamond producers by volume included the Democratic Republic of the Congo with 19.249 million carats valued at $9.33 per carat; Zimbabwe with 8.5 million carats valued at $56.01 per carat; and Australia with 7.829 million carats at $28.19 per carat. The total rough exports by all Kimberley Process member states jumped 41 percent to $52.83 billion, while rough imports rose 35 percent to $50.89 billion.
In terms of exports, the European Union was the world's top rough exporter in 2011 with $18.54 billion leaving the region. The United Arab Emirates (UAE) came in second as its exports jumped 66 percent to $5.87 billion. Botswana was third place with exports of $5.47 billion, followed by Israel with exports of $4.42 billion, and Russia with exports worth $3.81 billion. According to a report by Metals Economics Group (MEG), global rough diamond production has plateaued with declining output at the world's major mines and no significant new sources MEG noted that only two relatively small new projects were commissioned in the past year and despite higher prices for rough goods, both are struggling as they work to achieve full production. Five other new mines and expansion projects are scheduled to launch between 2013 and 2015, projected to add approximately 6.7 million carats per year to global production, the report noted.
MEG estimated that global diamond exploration budgets increased by 26 percent in 2011. According to the report, Russia was the top exploration target, accounting for 27 percent of the total diamond budget while Canada was second with 26 percent. They were followed by Angola with 13 percent, India with 8 percent, Botswana with 6 percent and South Africa with 5.6 percent.
