Professional Jeweler Archive: Diamond Export & Production News

March 2004


Diamond Export & Production News

Canada, Russia, Israel and India release statistics

Canada Third in Diamond Production

Canada has become the third largest producer of diamonds in the world behind Botswana and Russia, says Statistics Canada, a government agency. “From 1998 to 2002, companies have mined about 13.8 million carats of these precious stones of pure carbon, collectively worth $2.8 billion,” says the agency. That amounts to about 15% of the world’s supply of diamonds.
In the first six months of 2003, Canada’s trade in diamonds was worth just over $720 million, of which exports accounted for 81%, according to Statistics Canada. The agency’s figures come from BHP Billiton Diamonds Inc., Diavik Diamond Mines Inc. and Aber Diamond Mines Ltd., which signed waivers allowing publication of their statistics on production, employment, capital investment and trade.

Alrosa Plans U.S. Office, Increase in Sales in 2004

Alrosa, Russia’s diamond monopoly that provides about one-fourth of the world’s diamond supply, has made a series of moves according to the Rapaport Report. First, the producer is opening a U.S. office this year to serve a representative function only, though in the future it might sell diamonds.

It also was reported in Russian newspapers that Alrosa will increase its rough diamonds sales by 14% worldwide this year to counteract the falling U.S. dollar. Unconfirmed reports mention Alrosa will begin to supply diamond manufacturer Rosy Blue and that it’s in negotiations to market its cut stones through Tiffany & Co. and Cartier.

A Russian news agency reported that Alrosa’s diamond sales to De Beers, still its top customer, were down 25% last year, but Alrosa says De Beers remains its top priority. Both parties are still waiting for the European Commission to ratify their latest trade agreement, which is now more than 2 years old.

Israel’s Polished Diamond Exports Rise 6% in 2003

Net polished diamond exports rose 5.9% to $5.532 billion in 2003, says Israel’s Ministry of Industry & Trade. Net polished exports for December 2003 increased 31.7% to $350.2 million.

In 2003, the U.S. remained the largest market for Israel’s polished exports, accounting for 67%. Gross sales to the U.S. totaled $5.995 billion, up from $5.705 billion in 2002.

LLD Diamond was named top Israeli exporter of 2003, sending $570 million worth of polished diamonds to other countries, up 11% from 2002. The second top exporter was Schachter & Namdar Polishing, followed by Fabrikant Salant, Espeka Diamonds Israel and Dalumi A. Diamonds. “We look forward to 2004, which economists are predicting will be an even better year for the world economy,” says Simcha Lustig, chairman of the Israel Diamond Institute.

IDI will expand its participation in trade shows, establishing Israel diamond pavilions in exhibitions in Japan and China and in new shows in the U.S. and Hong Kong. The institute also is working to secure new rough diamond supplies through De Beers’ Diamdel, Canada, Australia and producing countries in Africa.

In the area of technology, IDI is pursuing research and development activities to raise manufacturing efficiency and lower costs.

Indian Exports Skyrocket

India’s exports of gems and jewelry rose a significant 22% in 2003 compared with 2002, totaling $10.6 billion. Loose diamond exports accounted for $8 billion of that growth.

Copyright © 2004 by Bond Communications