Angola to over take DRC for a 4th place in global diamond production
Global production of rough diamonds is expected to recover 1.4% to 112.99 million carats (Mct) in 2021, after registering an estimated decline of 19.4% to 111.4Mct in 2020, due to the COVID-19 pandemic, according to GlobalData. The leading data and analytics company notes that significant production recoveries are expected in Botswana (+ 37%), Canada (+ 16.6%) and Angola (+ 26.3%).
Vinneth Bajaj, Associate Project Manager at GlobalData, commented: “Global production will only increase slightly due to the closure of the Argyle mine in Australia in November 2020, alongside moderate growth in Russia. Overall, production over the forecast period (2021-2025) is expected to grow at a compound annual growth rate (CAGR) of 2.5%, reaching 124.8Mct in 2025. “
In 2020, the COVID-19 pandemic hit the global diamond market, which was already struggling due to several factors such as the trade war between the United States and China and political instability in Hong Kong, l one of the main places for the diamond trade. Due to the pandemic, operational activities and cross-border movements were severely disrupted.
“During the first quarter of 2020, China was hit the hardest, however, it was also the fastest to recover from the pandemic setback. China has become one of the main drivers of the balance in global demand for diamonds. Elsewhere, the gradual easing of restrictions has improved market conditions and strengthened demand throughout the global supply chain. Demand in major consumer markets, including the United States and China, recovered towards the end of 2020, ”Bajaj added.
Russia, which holds some of the world’s largest diamond deposits, is expected to remain the world’s largest supplier. With the potential for new diamond mines, Botswana, Canada and the DRC are also expected to remain major suppliers of rough diamonds to global markets. Furthermore, Angola will be among the top five producers in the world and eventually overtake the DRC to become the fourth largest towards the end of the forecast period.
