Diamond supply to plateau

| Friday September 19, 2014 15:17

However by 2020, when many of the existing mines will begin to see declining outputs, overall supply is expected to plateau According to De Beers Diamond Insight Report 2014, a number of projects are under way to expand diamond production and by 2020, about 25 per cent of carat production will come from projects currently under development. De Beers says that beyond 2020, there is a risk that production levels will begin to decline unless major new discoveries are made in the coming years and rapidly developed.

From 1950 to today, it took average of
14 years between the discovery of a diamond deposit and the start of production. For projects currently in development, however, this time is even longer as it can take more than 20 years from discovery to first production. Diamond production is also becoming increasingly challenging as mining moves towards deeper, less profitable and more remote sources.