The supply of natural diamonds has peaked, with declining discoveries looming, according to De Beers Group managed operations chief executive Moses Madondo.
“We must recognise that we are already past the peak for diamond supply. Despite extensive exploration, only one commercial discovery —the Luele mine in Angola — has been made in the twenty-first century,” he was quoted as saying by Mining Weekly at the Joburg Indaba, in Johannesburg.
The Luele diamond deposit was discovered in 2013 by Angola's State-controlled diamond miner Catoca.
It is one of the largest diamond discoveries in more than 50 years.
“The broader outlook indicates a decline in global diamond production. While this may create supply pressures, it offers price growth potential,” said Madondo.
He said that the production would decrease in four stages.
The initial phase would witness an abrupt fall as a result of the impending closure of numerous mines, as well as those that had halted operations in the past year.
In addition to mine closures, other diamond mines were undergoing production cuts as a result of the adverse market conditions.
Subsequently, a modest uptick in supply would occur until 2026, at which point a new fall would commence as significant diamond mines in Canada ended production.
Madondo predicted that the supply of diamonds will see a rapid reduction beginning in 2028 as a result of the closure of mines and the decline in production in Canada and Russia.
Subsequently, it is feasible to anticipate an annual reduction of approximately one percent until 2040. Nevertheless, the decline during this period could be partially mitigated by the restart of underground operations at Jwaneng in Botswana and the Mir diamond mine in Russia.
Mathew Nyaungwa, Editor in Chief, Rough&Polished
