Global Diamond Output to Reach 172 Mln Ct in 2018

Moscow: Equity Communications said global diamond output is expected to reach 171.840 million carats in 2018, reports Rough & Polished.

It said in a report titled, “The Global Diamond Business 2014” that diamond producers recovered 130.935 million carats last year, an increase of 2.4 percent from 2012.

Diamond production was projected to rise by 6.7 percent this year led by recovery in DRC and new production from the Grib mine in Russia, said Equity.

“Diamond mining has entered a period of rising output, with the top four diamond mining companies having recovered more diamonds in 2013 compared to 2012,” reads part of the report. “Cumulative annual growth in diamond production should continue for the remainder of this decade.”

Equity said diamond producers were expected to spend up to $15 billion on new mines and expansions of existing mines in the 10 years to 2018.

“If all projects go according to plan (Zimbabwe included), annual production capacity will likely increase to plus 180 million carats around 2018-2019,” it said.

Meanwhile, Equity said diamond producer sold rough diamonds for $16.772 billion in 2013, an increase of 9.8 percent from 2012.

Diamond producers, it said, would likely have a “bumper” 2014 because of increased production and firmer rough diamond prices.

“Rough diamond prices are generally stronger as we get closer to supply contract renewals by major diamond producers,” said Equity.

“Nevertheless, total sales of rough diamonds will increase by a lower 6.3 percent to reach $17.825 billion in 2014. It is unlikely that Angola will repeat massive stockpile sales in 2014.”