trade_pattern_pie.jpgIncreased Production

As you can see from the charts, most of the depicted countries have increased their diamond exports across the board between 1990 and 2003. Many of the smaller diamond producing countries have increased production exponentially and have taken some market share away from the more dominant countries of the past. In addition, the growth of the Australian and Canadian diamond industries has had a significant effect on the recent trade patterns of diamonds in recent years.

Australia and Canada have become major players in the diamond industry. The Argyle diamond mine in Australia is responsible for producing over one third of the world's total annual supply of diamonds. The average annual production currently totals 35 million carats. The Argyle diamond mine has made Australia one of the world's largest producers of diamonds in terms of volume, and the mine has become one of the most technologically advanced in the world. Australia is becoming a dominant country in the realm of diamond production, and we feel that this is not adequately depicted in the WTA data. 1990pie.jpg

Canada has also become a major player in the diamond industry. Canada's diamond industry is now worth $2.0 billion, having produced 11.6 million carats in 2003 and 12.6 million carats in 2004. Canada made an immense expansion into the diamond industry with the opening of its second diamonds mine, Diavik, in 2003. Diavik is expected to produce between six and eight million carats per year, which could translate into at least five percent of global supply. Indeed, a recent report by Natural Resources Canada states the following:
"Canada’s diamond industry is part of a minerals and metals industry that is one of the world’s largest producers and exporters. This highly productive and technologically advanced industry provides a source of stable, high income for northern, remote and Aboriginal communities. Canadian mining companies are also leading the way in integrating sustainable development into their activities in Canada and abroad. The Canadian mining industry was the first in the world to develop and adopt a national environmental policy. On the international front, some of Canada’s major mining companies are involved in projects ranging from delivering health, water and electricity services to reintegrating workers into their communities."