Australia’s Diamond Production Slashed by 81.3%

An Australian pink diamond mined by Rio Tinto at Argyle

Australia produced 583,000 carats of diamonds with a total estimated value of A$76 million (US$65 million) in the June-ending quarter. Of these goods, some A$46 million (US$39.5 million) are gem-quality rough diamonds.

The figures, released last week by the Australian Bureau of Agricultural and Resource Economics (ABARE), are far below Australia’s regular production levels. The volume of production fell 81.3 percent year over year and by 87.3 percent from the March-ending quarter.

The sharp fall in production is mostly an outcome of Rio Tinto’s decision to stop mining at its Argyle diamond mine in west Australia during the quarter.

The total value of exports fell 36.1 percent year-over-year and by 68.5 percent from the March-ending quarter. Gem-quality goods, averaging A$4,181.82 per carat (US$3,592.06 p/c), fell 32.8 percent year-over-year and by just 0.3 from the March-ending quarter.

The entire quarterly production was exported.

Australia imported 69,000 carats of gem-quality diamonds with a stated value of A$101 million (US$87 million). In terms of value, this is a 4.2 percent increase from the previous month.

The drop in diamond production and exports was in contrast to Australia’s rise in export earnings from mineral resources, which increased by 37 percent to a record A$159.7 billion (US$137.2 billion). “The record earnings reflect a 16 percent depreciation of the Australian dollar and higher contract prices for bulk commodities in the first nine months of the financial year,” noted ABARE’s Deputy Executive Director Dr Terry Sheales.

Besides diamonds, declines were most pronounced in the production of nickel, iron and steel, zinc, gold and black coal.