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The Diamond Pipeline - from the Rough to the Polished

Jwaneng Mine, Botswana The "pipeline" starts with the rough diamonds at the mines. On a worldwide basis, diamond mining takes place in nations across 4 continents with diverse political, economic, and cultural ideologies. Diamonds are found in Australia, Botswana, Canada, Namibia, Russia, Sierra Leone, South Africa, Brazil, Venezuela, China, India, Indonesia, the Central African Republic, D.R. Congo, Guyana, Ghana, Guinea, the Ivory Coast, Liberia, Tanzania, and Zimbabwe.

Space Mail To
  Botswana

In Botswana, one of the factories which is situated in Molepolole - "the gateway to the Kalahari" is described at: www.source.bw

Russell Shor reported recently on Gemkey, that Botswana's mining minister K Moshashane, said that diamonds (70% of his country's earnings) "have transformed Botswana from dire poverty into a stable democratic developing country."

In an LA Times article,(Friday, July 21, 2000) found at www.latimes.com/new/comment/20000721/t000068539.html, Nicky Oppenheimer, the Chairman of De Beers Consolidated Mines Ltd., stated, "Since the discovery of its diamond deposits, Botswana has achieved record economic growth." Describing diamonds as "neutral", he said that "they can be a source of great good, as in Botswana, South Africa and Namibia."

Distribution

Once the rough diamonds leave the mines, they are distributed through the DTC to their sightholders, or sold via the rough dealers in Antwerp (the major rough diamond market) to the diamond manufacturers at the various cutting centers.

In the past few years, new sources of rough, from Australia, Russia, Canada, and parts of Africa, considerably changed the controlled single market system in a number of ways. Also, a significant quantity (and variety) of "outside" rough has always been sold on the open market in Antwerp; and, rough, from some of the mines, continues to go directly to a select number of diamond manufacturers in the cutting centers.

Although the DTC (the Diamond Trading Company) will continue to distribute and market the majority of the world's rough production, as a part of De Beers new strategy it plans to adapt its rough distribution system, something that will open up new possiblities to other players on the diamond scene.

Diamond Cutting and Polishing

The major diamond manufacturing centers include Israel, Belgium, India (Mumbai and Surat), and New York; cutting and polishing also takes place in South Africa, Botswana, Russia, China, Sri Lanka, Thailand, Vietnam, and Mauritius.

There are 10 International Diamond Manufacturer Associations worldwide.
  • Algemene Juweliersvereniging Tel:(31.20) 679.13.11
  • The Association of Diamond Manufacturers of Russia Tel:(7-95) 249-8868
  • Bundesverband der Edelstein-und Diamantindustrie Tel: 49.6781-944240
  • The Master Diamond Cutter Association of South Africa Tel:(27-11)334-6216
  • The Mumbai Diamond Merchants Association Tel:(91-22) 363-0816
  • Syndikaat der Belgische Diamantnijverheid Tel:(32.3) 232.46.60
  • The Thai Diamond Manufacturers Association Tel:(662) 390-0341
  • Vereniging van Kempische Diamantwerkgevers Tel:(32.3) 233.30.88
  • Diamond Manufacturers & Importers Association of America www.dmia.net e-mail:BenLer@aol.com
  • The Israel Diamond Manufacturers Association Tel:(972-3) 575-2483 www.keyguide.net/isdma
After the rough is polished, it is sold by the manufacturers/exporters, brokers, or dealers to loose diamond buyers: jewelry manufacturers, jewelry and watch designers, diamond wholesalers, retail jewelry stores, catalogue showrooms, etc.

The final destination of the polished diamonds and diamond jewelry being the consumer.

For years, there was a "semi-official/traditional" diamond pipeline description; however, in today's diamond world, this is changing - dramatically, for a number of reasons including the Internet's "btoc" and "btob" websites which effectively by-pass significant parts of the pipeline in one way or another.

Rough Diamond Conferences

Rough Diamond Conferences were held in Mumbai, Tel Aviv, and Toronto.

An International Diamond Conference, Mines to Markets, was held in March 2000, in Mumbai. Organised by The Gem & Jewellery Export Promotion Council, there were discussions on the developments on the mining front, manufacturing, technology in the industry, and the developments on the Internet. For more information, www.gjepc.com

At the International Rough Diamond Congress, held in Tel Aviv in March 2000, independent diamond producers and those affiliated with De Beers, as well as bankers, polished manufacturers, sightholders, rough dealers and brokers participated. The development of the rough diamond trade, the balance between the rough diamond supply, and the demand for polished were amongst the topics discussed. Of interest is the fact that, the president of BHP Diamonds (the Ekati Mine in Canada), Jim Rothwell, noted that internet sales of rough diamonds could probably be a factor in the not too distant future.

Another aspect of the conference was described in the article "Junior Mining Companies Sell Themselves in Tel Aviv", on the website www.diamonds.net, noting the fact that while many of the conference speakers represented the larger mines, the "junior" diamond exploration and mining companies used the time (between sessions) to network and make contacts. For more details we invite your attention to: http://www.diamonds.net/news/newsitem.asp?num=4210&type=all&topic=all

A Rough Conference was also held in Toronto Canada in June - 2000. Information about this can be found at www.diamondconsult.com/TACY-Articles/jun21001.htm

Diamond exploration, mining, and production.

  • archangeldiamond.com/diamonds/abc.html (Russia)
  • www.ashton.ca (Canada)
  • www.ashton.net.au (Australia)
  • www.ashton.net.au/argyle/index.html
  • www.mbendi.co.za/indy/ming/mingmrc2.htm
  • www.crewgroup.com/bwd/index.html
  • www.diamondfields.com (Namibia and South Africa)
  • www.diamantes.com.br (Brazil)
  • www.edata.co.za/debeers/primary.html  This site covers prospecting, mining, sorting, valuation, sights, cutting & polishing, and the polished market.
  • www.edata.co.za/debeers/pipe.html  It's very interesting to follow the "diamond pipeline" as it is described on these pages.
  • www.ssimicro.com/~graemeda/diamonds/html/world_production.html
  • www.rexmining.com Fully integrated diamond mining company with activities ranging from exploration of new deposits, production at its own mines, cutting and polishing, jewelry manufacturing, and e-commerce distribution.
Rough Diamond Brokers - DTC
  • Bonas & Company Ltd. e-mail: bonas@dial.pipex.com
  • www.goldie-diamondbrokers.com H. Goldie International Diamond Brokers. This website explains the role of the De Beers' rough diamond broker and that of a sightholder. An informative newsletter keeps you up-to-date on the sights and the polished and rough market conditions.
  • I Hennig & Co. Ltd. e-mail: brokers@hennig.co.uk, or e-mail:hennigil@netvision.net.il
  • www.wnagel.net W. Nagel International Diamond Brokers. The company has offices in Antwerp, Bangkok, Hong Kong, London, Lucerne, Mumbai, New York and Ramat Gan.
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