Global Supply of Diamonds has Peaked
October 13, 24
(IDEX Online) - The supply of natural diamonds globally has peaked, Moses Madondo, CEO of De Beers group managed operations, told a conference in South Africa.
Production is declining, with a number of mine closures on the horizon, he said, but no new deposits coming online.
Limited supplies could, however, help force up prices, he told the Joburg Indaba, a conference on resources and mining in Africa (Indaba is Zulu for "business").
"There has been only one commercial discovery in the 21st century, the Luele mine in Angola, where we hope to begin production by the 2030s. But the broader outlook shows a decline in global production," said Madondo, who oversees mining operations in Canada and South Africa.
"The broader outlook indicates a decline in global diamond production. While this may create supply pressures, it offers price growth potential."
Over the next 15 years or so he predicted a production dip in the immediate future, followed by a post-2025 increase thanks to Luele ramping up production in Angola and the Venetia mine (in South Africa) switching to underground operations.
But the Diavik mine, in Canada, is set to close in 2026, and the closure of mines in Russia will further reduce supply.
Pic courtesy De Beers shows Moses Madondo.