|Diamonds are our core business|
Diamonds are nothing but carbon compounds, which crystallised long ago under extreme pressure and high temperatures in deeper layers of the earth crust. Volcanic activities set them free. The pressure of the earth's magma caused the formation of pipes in the earth crust, through which the magma erupted as a volcano.
The diamonds are enclosed in these pipes, which consist of volcanic stone, the so-called Kimberlite. By drilling into the pipes from the side, miners excavate the diamond-containing stone. Ten tons of stone usually contain one or two carats of raw diamonds, one carat equalling about 0.2 grams.
The diamond chain starts here...
..and ends here!
Strong diamond prices fuelled by short supply and high demand
- The De Beers and Russian diamond stockpiles have been greatly depleted;
- There has been no major diamond discoveries in the recent past and no major mines are planned to come on-stream in the near future;
- There have been several major diamond mine closures recently.
- For the first time in its history De Beers is free to trade in the USA - De Beers have announced that they will set up 150 retail diamond stores across North America and Europe;
- There are large diamond bourses emerging in Dubai and China to service the rapid growth in retail demand for diamonds in India and China;
- The greatest upward price pressure is being felt on the better quality, larger diamonds.
Simple steps of alluvial diamond mining