Less Diamonds From Australia in 2009-10

According to a government report published Tuesday, Australia is witnessing a decrease in the amount of money spent on diamond exploration and the amount produced in weight and volume. Subsequently the value of diamonds exported has also fallen.  

In the years 2003-2008, spending on privately funded diamond exploration hovered just over the A$20 million (US$17.47 million) mark, reaching a pinnacle of nearly A$27 million ($23.6 million) in 2006-2007. However, by 2008-2009, the amount was more than halved and was A$10 million ($8.73 million), based on data released by the Australian Bureau of Agricultural and Resource Economics (ABARE).

ABARE released its quarterly results and predications for the upcoming calendar year.

As expenditure on diamond exploration decreased, the production of diamonds by weight and value decreased as well. In 2006-2007, when diamond exploration budgets were at there highest, was also the year when diamond exports peeked at 24.6 million carats.

During 2008-2009, 16,3 million carats were exported. In 2009-2010, ABARE expects exports to drop down to nearly a quarter of previous years, 4.3 million carats total.

The value of exports is linked to the drop in spending by private companies on diamond exploration. In 2008-2009 spending on diamond exploration was at a five-year low of A$10 million ($8.73 million), and in 2009-2010, diamond exports are predicted to reach a fiver year low of 4.3 million carats.