Diamond Mining
[Image Courtesy: Gem Diamonds]

Effects of market slowdown in the diamond industry seems to have not just hit hard the intermediaries and manufacturers but diamond mining companies as well. In past couple of months, many diamond mining companies have reported declining sales and revenue and some of them have even reported widening losses. The latest to join the list of such diamond mining companies recording negative results is the world’s biggest diamond miner by volume – ALROSA.



  • In the first half of 2015, ALROSA sold only 18 million carats of diamond roughs for USD 2.1 billion, a significant drop of 22% from 2014’s first half year when it sold 21.1 million carats for USD 2.7 billion


De Beers

  • Sales in first half of 2015 was 14 million carats, 26% down from same period last year when it sold 16 million carats
  • Its diamond production also decreased by 6% to 8 million carats
  • Moreover, at its latest sight initially estimated at USD 200 million, Sightholders rejected 65% of goods, despite the company cutting the size of its sight


Okavango Diamond Company (ODC)


Rockwell Diamonds

  • Gross revenue plunged by 39%, from USD 15.1 million in first quarter of last year to USD 9.2 million only during Q1 FY 2015-16
  • The company also reported a gross loss before depreciation and amortization of USD 3.1 million during the period against the corresponding period last year’s profit of USD 4.3 million
  • Net loss of USD 5.1 million was recorded during the quarter
  • The company also recorded loss attributable to the owners of the parent company of USD 65.1 million, against loss of USD 345,000 last year


Lucara Diamond Corp

  • Revenues for first 3 months of 2015 declined by 10% to USD 29.6 million
  • Operating margins also reduced by 10% to USD 169 per carat
  • Its Karowe diamond mine produced 90,077 carats, 7% less than planned
  • It was in the process of disposing its Mothae project to Paragon Diamonds


Gem Diamonds

  • In the January to May 2015 period, sales from Letseng mine declined 9% to USD 77.1 million through its first 3 tenders of the year
  • Production at Letseng mine also declined by 8% in the January to April period at 31,369 carats compared to preceding 4 months


Zimbabwe diamond miners

  • A recent governmental audit report revealed that most of the diamond mining companies operating in Zimbabwe are facing huge losses, with the overall financial situation in red


Apart from the diamond mining companies, worldwide markets are also witnessing similar slump

  • Antwerp’s trade recorded exports decline of diamond roughs by 15% in volume and 21% in value in first half of 2015
  • Zimbabwe’s diamond exports fell by 34% in 2014 to 5.9 million carats with an export earnings of USD 350 million compared to previous year when diamond exports contributed USD 453 million to the country’s revenue


Diamond Mining
[Image Courtesy: Geek]
Some of the diamond mining companies are even shutting some projects. Kimberley Diamond Company unexpectedly suspended operations and closed down its Western Australia-located Ellendale mine, which used to produce fancy yellow colored diamonds, raising fear among workers that their unpaid wages will not be met. While the diamond slowdown continues and depressed conditions in the industry expected to prevail at least for some time, apart from diamond manufacturers and players across the pipeline, diamond mining companies are also losing in a big way.


Leave a Reply