In 2023, the value of Russia’s rough-diamond production surpassed Botswana’s for the first time, despite sanctions and a weak market impacting the country’s diamond sales. This growth occurred even as the European Union joined the list of entities banning Russian diamonds and the US implemented stricter rules regarding goods substantially changed in a third-party country, such as India.
According to statistics released by the Kimberley Process (KP) this week, Russia produced 37.3 million carats of rough diamonds with a total value of $3.61 billion, averaging $97 per carat. This compared to 2022, where Russia produced 41.9 million carats valued at $3.55 billion, with an average price of $85 per carat.
In contrast, the value of production at Botswana’s mines declined, possibly due to a lower available output mix at De Beers’ Jwaneng deposit, which is currently undergoing an expansion.
Diamond mining giant De Beers reported an 8 percent decline in rough production in 2023, marking what was a tumultuous year in the industry. In early January, the board of Debswana, the 50:50 diamond mining joint venture between De Beers Group and the Government of Botswana announced it had approved investment for a key development phase of the Jwaneng underground project, paving the way for the world’s most valuable diamond mine to transition from open pit to underground operations.
Since 1982, when the Jwaneng Mine started operating, it has produced an annual average of almost 11 million carats per year. In 2023, Botswana produced 25.1 million carats with a total value of $3.28 billion, averaging $131 per carat. This was a decrease from 2022, where the country produced 24.5 million carats valued at $4.7 billion, with an average price of $192 per carat.
Global rough diamond output fell twenty percent year on year to $12.72 billion. By volume, production slipped eight percent to 111.5 million carats. Additionally, total imports dropped ten percent by volume, while global exports were down nine percent. The decline in exports reflected a twelve percent slump in the number of carats exported from Russia, a twenty-four percent drop from Botswana, and a forty-five percent decrease from South Africa.
