Global diamond production rose 51% year on year to $13.99 billion, exceeding 2019’s total of $13.57 billion, according to statistics the Kimberley Process (KP) released this week. By volume, production increased 12% to 120 million carats but trailed the 2019 figure of 138.1 million carats.
The numbers reflect significant growth in Angola and Zimbabwe, two countries that are developing their mining industry at high speed. Versus 2019, Angola’s production rose 28% to $1.63 billion, while Zimbabwe’s jumped almost fivefold to $670 million. That helped offset the loss of goods from Australia, where production slumped to zero following the 2020 closure of Argyle, previously the world’s biggest source of diamonds by volume.
In 2020, major mining companies — including De Beers and Alrosa — slashed their production in response to the Covid-19 crisis. Output in Botswana soared 85% to $4.66 billion last year as the situation normalized.
Production is expected to hit 120+ million carats in 2022 but is unlikely to reach pre-pandemic levels within the next five years. The largest short-term threat is new coronavirus strains (e.g., the omicron variant) that might disrupt production and logistics again.
Major new projects have not been announced and investments in exploration are limited, so production growth will likely stay at 1% to 2% per year during the next half-decade. Promising demand growth and production scarcity support stability or further price growth for rough diamonds.
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