African diamonds seem to be on a course of comeback

African diamonds
[Image Courtesy: GIA]

While polished diamond prices are estimated to be at a 5-year low due to various factors including subdued Chinese demand, according to Hong Kong Trade & Development Center (HKTDC), China’s share of diamond consumption in total global sales is expected to increase to 20 – 25% in next 10 years. Chinese girls apparently now prefer bigger diamonds for their engagement rings. Though the cyclical changes in the market continue to happen, African diamonds seem to be making a comeback.

Though its revenue slightly decreased in 2015, Angola plans to double its diamond production by 2018, according to Endiama chairman – Carlos Sumbula.

Mining license application for Tongo Dyke-1 project in Sierra Leone by Stellar Diamonds has been received by The National Minerals Agency and is seemingly making progress after consideration of the same and holding of public disclosure meetings over environmental license. The development resulted in rise of share prices of Stellar Diamonds. Besides, after more than 15 years since the last diamond processing firm shut down, Sierra Leone may soon get a new diamond cutting and polishing firm, a development resulted from visit of large business delegation from Belgium.

Whereas in Zimbabwe, Kenako Diamond Processing – a new diamond cleaning firm has been set up to add value to Zimbabwe’s gems and make them more presentable in the international markets. At the same time, Murowa Diamonds in Zimbabwe has recently invested over USD 6 million in purchase of new mining equipment for its expansion program.

The only exception is Botswana – the largest supplier of roughs from the continent. As diamond mines start depleting, Botswana is championing sectors like Tourism, Transport and Agriculture to survive.

Despite the overall economic problems, diamond miners globally have started to show signs of recovery and especially African diamonds seem to be on a course of a comeback.

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