Australia: Gloomy Forecast for Country’s Diamond Industry
June 23, 09
Australia expects its diamond industry to suffer a sharp blow in fiscal 2009-10 against the backdrop of the global financial crisis. The country’s leading governmental analysis body forecasts a near quarter drop in year-over-year production and export activity for the diamond industry, while exploration expenditure is shrinking.
Australia’s private diamond exploration expenditure totaled A$21.7 million (US$ 17.1 million) in fiscal 2007-08, while the country’s diamond production is forecasted to decline to 12.6 million carats in fiscal 2009-10, according to an ABARE report published on Tuesday June 23.
These figures represent short declines in the country’s diamond industry, falling 19.3 percent in exploration expenditure and 30.1 percent in diamond production.
The volume of Australia’s diamond exports is also forecasted to decline - dropping in fiscal 2009-10 some 24.2 percent on exports of 12.6 million carats - Australia’s entire diamond production. The value of these exports is forecasted to slump 25.3 percent to just A$378 million (US$297.5 million).