The time when De Beers controlled most of the diamond trade is history, currently, the biggest player within the diamond industry is the Russian based ALROSA leaving De Beers at the #2 spot within the industry. This flip took place somewhat recently as more than 90 % of diamond mining activities is conducted countries such as Russia, the Democratic Republic of Congo, Australia, Botswana, and Canada and the mining in these countries account for an approximate 60% of the entire globe’s diamond production.
The reason as to why ALROSA took over the top spot is simply due to the fact that ALROSA basically controls most of the diamond production in Russia. This article examines these two diamond producers briefly to gain a better insight of their positions within the global diamond industry.
ALROSA leads the way with an approximate carat production averaging between 35 and 38 million annually. The diamond production company mainly operates within Russia’s borders and mainly in the Yakutia region which is in Siberia that accounts for more than 90% of all the diamond mined in Russia which in turn accounts for nearly a quarter of the total diamonds in circulation in the world.
From this perspective it would be easy to conclude that a significant percentage of diamonds in diamond engagement rings would most probably be from ALROSA just like how most pink diamonds in engagement rings are from diamonds in Australia from their famous Argyle mine.
The only foreign interest that ALROSA has within the scope of the diamond production industry is in Angola (Catoca Mine), where the company holds a 32% stake. To date ALROSA operates nine diamond mines/ fields along with 10 alluvial mines. Much of the reasons behind ALROSA’s move to the top position are attributed to the Verkhne-Munskoye diamond field which contains an estimated $4bn worth of diamonds.
De Beers on the other hand produces an average of 30 million carats annually give or take the past few years. The company that once ‘ruled’ the diamond industry was established in 1888 by Cecil Rhodes who was a British politician and businessman. The company currently headquartered in London is controlled by multinational miner Anglo American after the multinational company bought over Oppenheimer’s 40% share in De Beers in 2012.
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Anglo American is in essence a mining company that is responsible for 40% of the global platinum output and is also a leading player within most products that involve mining which also includes diamonds. De Beer’s total diamond output for 2023 was 32 million carats which was lower than their 2022 production. De Beers mainly focuses on mining in South Africa, Botswana, Canada and Namibia.
The company also controls Diamond Trading Company which is responsible for selling and distributing rough diamonds and in terms of value and is undoubtedly one of the world’s largest diamond distributors after sorting, evaluating and categorising rough diamonds that are extracted from the mines that De Beers operates.
