Diamond production is expected to fall gradually while operating costs will continue to increase.
Overall diamond supply is expected to increase in the next few years, driven by new projects coming on stream. By 2020, when many of the existing mines will begin to see declining outputs, overall supply is expected to plateau.
A number of projects are under way to expand diamond production. By 2020, about 25 per cent of carat production will come from projects currently under development, but much of this increase in output comes from projected expansion at current mines such as Rio Tinto’s Argyle mine in Australia. Among new developments, the largest are ALROSA’s Botuobinskaya, Lukoil’s Grib and De Beers‘/Mountain Province Diamonds’ Gahcho Kué projects.