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In 2023, despite sanctions and a weak market that impacted Russian diamond sales, the value of Russian rough diamond production surpassed that of Botswana for the first time. This growth was achieved despite the EU joining the Entity List that bans Russian diamonds and the US imposing stricter regulations on goods that undergo significant changes in third countries such as India.
According to statistics released this week by the Kimberley Process (KP), Russia produced 37.3 million carats of rough diamonds with a total value of $3.61 billion, an average of $97 per carat. In contrast, in 2022, Russia produced 41.9 million carats of rough diamonds with a total value of $3.55 billion, an average of $85 per carat.
In contrast, the value of output from Botswana mines declined, likely due to lower available output structure at De Beers’ Jwaneng deposit (currently under expansion).
Diamond mining giant De Beers reported an 8% drop in rough diamond production in 2023, a turbulent year for the industry. In early January, the board of directors of Debswana, a 50/50 diamond mining joint venture between De Beers Group and the Botswana government, announced that it had approved investment in 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 mining.
Since the Jwaneng mine began operating in 1982, it has produced an average of nearly 11 million carats of diamonds per year. In 2023, Botswana produced 25.1 million carats of diamonds worth $3.28 billion, at an average price of $131 per carat. This is lower than in 2022, when the country produced 24.5 million carats of diamonds worth $4.7 billion at an average price of $192 per carat.
Global rough diamond production fell 20% year-over-year to $12.72 billion. On a volume basis, production fell 8% to 111.5 million carats. In addition, total imports fell 10%, while global exports fell 9%. The decline in exports reflected a 12% drop in carats exported from Russia, a 24% drop from Botswana, and a 45% drop from South Africa.
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