44% Drop in Australian Diamond Production Expected

Diamond production in Australia is expected to be slashed in value and volume in the current year but see some recovery next year, the Australian Government said in an economic forecast Tuesday.

Production in fiscal 2008-2009 is expected to fall to 13.618 million carats valued at A$374 million (US$239.85 million), a 17.61 percent drop in volume and 43.71 percent drop in value. The average value of this production is US$17.60 per carat.

In 2009-2010, production is forecasted to rise to 19 million carats and increase in value to A$570 million (US$365.54 million).

By comparison, in the 2007-2008 period Australia’s diamond production totaled 16.528 million carats worth A$664 million (US$425.82 million), an average of US$25.75 p/c.