Ethical Practice

• An estimated 10 million people are directly or indirectly employed by the diamond industry globally
• An estimated 5 million people have access to appropriate healthcare globally due to revenues from the diamond industry
• 99.8% of the global supply of diamonds is produced by Kimberley Process participants
• The diamond trade contributes approximately $8 billion per annum to Africa
• Diamonds account for 88% of Botswana’s export revenue, 35% of government revenue and 20% of the gross domestic product (GDP)
• Diamonds account for approximately 48% of Namibia’s export revenue, 59% of government revenue and 21% of GDP
• All the major miners and polishers, such as De Beers and ALROSA, have extensive social development programs to benefit the local populations. These include education, training, local facilities and infrastructure, among others. 25% of De Beers employees are women
• In India over 1 million people are employed in the diamond industry
• The City of Surat, the world’s diamond cutting and polishing capital, is expected to have the fastest GDP growth out all cities in the world between 2019 and 2035

Natural Diamonds are created when carbon is put under enormous pressure and high temperatures deep within the earth. Diamonds come from two types of deposits. Primary deposits generally consist of “pipes” of volcanic rock called kimberlite. These deposits were carried by magma to the surface of the earth. Secondary deposits, or alluvial deposits, are formed as a result of erosion of material from primary deposits and contain diamonds that have traveled some distance from their original source. Diamonds found deep in the earth are mined through open-pit and underground methods. Alluvial mining methods include digging and sifting through materials such as mud, sand or gravel using shovels or (mechanical) sieves.

The world’s five largest mining companies produce about three quarters of all rough diamonds globally. With South African De Beers and Russian Alrosa making up circa 50% of global production. Other large mining companies include Australian Rio Tinto, Canadian Dominion Diamond Mines and Petra Diamonds headquartered in the UK.

Diamonds serve two main functions: jewelry and industrial use. A little more than 50 percent of the volume of diamonds mined become gemstones, yet they make up over 95 percent of the total value. Today, the majority of diamonds used for industrial purposes are lab-grown diamonds. Once mined, rough natural diamonds are separated into industrial quality diamonds and gem quality diamonds.

Gem quality diamonds are either sold straight to diamond polishers referred to as Sight Holders or auctioned off. London, Moscow and Antwerp are the main centers for the purchase and trade of rough diamonds.

Transforming rough stones into finished gems, comprises four steps: determining the optimal cut, cleaving or sawing to break the rough diamond into pieces, bruiting to give the diamond the desired shape and polishing the facets. Although cutting takes place in many countries across the world, circa 90% of all diamonds in terms of value are currently polished in India, mostly in the city of Surat.

After stones have been cut, they are often certified by independent laboratories of which the Gemological Institute of America is the most well known institute.

Polished diamonds get sold to manufacturers of jewellery, jewellery retailers or diamond dealers. Many jewellery retailers, especially those selling engagement rings, buy polished diamonds directly using their own or third party “setters” to set diamonds in manufactured jewellery. Antwerp, New York and Shanghai are important polished diamond sales centers and many major diamond players maintain a presence in these cities. But recently the site of sale is shifting closer to manufacturers in India as many Indian suppliers invested in their own sales and distribution channels.