Saturday, 27 September 2014

Diamond Mining Companies

Has it ever occurred to you that the sparkling and scintillating diamonds that adorn us, how have they reached us? Or, how have they been unearthed from the structural layers of earth? And who are responsible for bringing them to the markets all over the world?

The answer can be summarised merely in a phrase- The diamond mining companies.

A diamond mining company can be defined as an enterprise which is responsible to excavate diamonds from the potential areas, sort the diamond rough, send them for cutting and polishing and finally are bring them to the markets. The diamond mining companies are required to strike a balance between its economic, social and environmental responsibilities and make a positive and lasting contribution to the environment where it is operating.

This post of SDI talks about the three big players of diamond mining industry:
De Beers
Alrosa
Rio Tinto

DE BEERS: De Beers is a name synonymous with flawless and sparkling diamonds. They are pioneers of diamond mining, sorting, cutting, marketing and sales. The journey of this huge venture started in the year 1888 in the Kimberley region of South Africa by Cecil Rhodes, a British businessman and Barney Barnato, also a British.


This 125 years old enterprise saw many ups and downs in its journey but still managed to top the charts as the world’s leading diamond company. In the year 1905 when the company was under Sir Ernest Oppenheimer, The Cullinan diamond was discovered at the Premier mines. This is the biggest diamond rough ever found and it weighed 3,106.75 cts. Nine diamonds were fashioned from this rough and were called Cullinan 1, Cullinan 2 and so on.
CULLINAN DIAMONDS

In 1934, the Diamond Trading Corporation was established which is responsible for rough diamond sales and distribution which are mined from South Africa and Canada and from Botswana, Zimbabwe and Tanzania in partnership with their governments. Clients of the DTC are known as sightholders. They are basically authorised purchasers of bulk diamonds. To become a sightholder one has to comply with certain standards listed by the DTC.

In the year 1947 they came up with the most celebrated advertising slogan “A Diamond is forever”.

From the onset of the year 1966 potential mines in Botswana were discovered. Orapa mine was the biggest success they got in that region. De Beers started a new venture with the government of Botswana, called Debswana (50:50) in 1969 for mining diamonds from Orapa. In the year 1972 the Jwaneng mines were discovered, which is considered to be the richest mine in the world. Venetia mines in Limpopo province of South Africa began production in 1992. It is the largest diamond producing mine of South Africa.
ORAPA MINE

JWANENG MINE


Potential deposits were found in Namibia and Namdeb, a joint venture of De Beers with the government of Namibia was started to exploit the mines.

In the year 1998 De Beers started working on Forevermark technology wherein the diamond is laser inscribed with a Forevermark symbol and unique identification number which is invisible to the un-aided eye. Forevermark ensures that the diamond has been responsibly sourced; they are natural and untreated and pertain to certain select standards.


De Beers took the initiative of controlling the supply of conflict diamonds by launching the Kimberly Certification Scheme in 2003. The governments of the nations where diamonds are mined along with the Diamond industry and the United Nations Organisation joint hands to halt the flow of these conflict diamonds which are used to fund illegitimate operations. Under the scheme the rough diamonds are certified stating that they are not financing any rebel group to overthrow the legitimate government and the diamonds are not being imported or exported to a non member of the scheme. For the year 2012 De Beers had revenue of US $ 5.5 billion.

ALROSA: this company is another giant venture which tops the charts in leading diamond mining companies of the world. Their major operations are carried out in regions of Russia.

This company has a glorious history which dates back to the year 1955 when the Mir kimberlite pipe and the Udachnaya pipe were discovered along with 15 other sources. The Udachny mine which operates on the Udachnaya pipe is the second largest diamond mine in the world with estimated 152 Mct (million carats) of diamond reserves as of year 2013. On an average this mine produces 10 Mct of diamonds every year. The Mir mine is the third largest mine in the world with estimated reserves of 141 Mct.
MIR MINE

UDACHNAYA PIPE

In its early days the company was recognised by the name of Yakutalmaz enterprises and they set up their first unit. Many other deposits were located in the Yakutia region and subsequently diamonds from these markets were being sold all over the world. In the year 1960 they discovered the Aikhal mines in the Yakutia region which is one of the largest mines in Russia and produces 2.5 Mct on an average every year.

Yakutalmaz achieved another milestone with the discovery of Jubilee mines in the year 1975, which is the biggest diamond mine in the world. The production started in 1986. With estimated reserves of 153 Mct as of 2013. The mine produces over 10 Mct on an average every year.

The Catoca mine in Angola in Africa in 1997 recovered its first diamonds. It is a joint venture enterprise in which Alrosa has 32.8% share. This mine has an estimated reserve of 130 Mct of diamonds and on an average produce 6-7 Mct every year. In the next few years Alrosa opened its offices in Antwerp, London and Luanda.

With the onset of the new millennium Alrosa found new deposits in Nyurba which is a very rich diamondiferous region. Mining here has unearthed fine quality diamonds. In the year 2007 Yakutalmaz group celebrates glorious 50 years. In the subsequent years Botoubinskaya pipe was discovered, which again is a promising source of diamonds. The production is set to start in 2015 and it is estimated to produce 1.5 Mct of diamonds every year.
Alrosa had estimated revenue of over US $ 4 billion for the year 2012.

RIO TINTO: the word Rio Tinto in Spanish literally means red river. The Rio Tinto group of companies was established in the year 1873 and Rio Tinto Diamonds is the company which looks into the mining and production of diamonds.

Rio Tinto Diamonds marked its place in the diamond mining industry in the year 1972 when Ashton Mining Limited found diamond deposits in the Kimberley region of Australia. Conzinc Rio Tinto of Australia (previous name of Rio Tinto) took over the management of Ashton mining and in subsequent years discovered the diamondiferous lamproite pipes. In 1983, Argyle mine was set up. This is one of the biggest mine in the world and is the leading producer of naturally colored diamonds, mostly pink. This mine has a capacity of producing 20 Mct of diamond rough.

ARGYLE MINE

PINK DIAMONDS

Another important mine of Rio Tinto is the Diavik mine in Canada on an island in Lac de Gras. It is a joint venture between Diavik Diamond Mines Inc. (a subsidiary of Rio Tinto Diamonds-60%) and Doiminion Diamond Diavik limited partnership (40%). The diamonds were discovered in the 1990 and the mine started operation in 2003. The mine operates on three kimberlite pipes. This mine on an average produces over 7 Mct of diamonds every year.
DIAVIK MINE

Murowa Diamond mine located in Zimbabwe is owned by Rio Tinto (78%) in partnership with Riozim Limited (22%). The kimberlite pipes were discovered in 1997 and the production started in 2004. The mine produces on an average 2.5 Mct of diamonds every year.

The Bunder project of Rio Tinto, in Madhya Pradesh, India is the biggest diamond project of the country. The area has extremely rich diamond deposits and would beat Panna mines in terms of production. Rio Tinto is soon expected to get a license to commence mining.

Diamond mining companies play a very important role in the industry as they are wholly responsible to bring these awe-striking diamonds to end users like us. In depth knowledge of these companies can not only help one to gain valuable knowledge about the process but also understand the diamond market.


 *The Author is a Colored Stone Graduate from Gemological Institute of America, Mumbai and a Diamond Graduate from Solitaire Diamond Institute, Bangalore. She also holds a Diploma in Jewelry Designing & Manufacturing from Jewelry Product Development Centre, Jaipur. She also blogs at 'The Jewel Affair'

*Picture Courtesy: Google Images