13 / 90
10
In reality, exploration spend for diamonds has not
kept pace with that for other natural resources; it is
now at practically half the record levels seen in 2007,
when the industry was spending almost US$1 billion
per year on diamond exploration. This situation is not
expected to change in the near future, as the global
mining industry overall continues to face pressure
on capital expenditure.
SECTION 3: IN FOCUS
‘Changing consumer preferences and the growth of
brands’ looks in detail at how the consumer landscape
is changing in the US and China. Notwithstanding the
market’s vertiginous growth over the last five years,
China still offers a tremendous growth opportunity
for the industry. Penetration of diamond jewellery is
still relatively low and consumers’ desire for diamonds
is high. The situation in the US, a more mature
market for diamonds, is different. Fine jewellery has
grown more slowly than other luxury categories in
recent years. However, there are promising growth
areas in the US too, not least in bridal jewellery and
branded diamonds and diamond jewellery, which
have performed particularly well in recent years.
‘Safeguarding the industry through technology’
describes the vital role played by technology across
the entire diamond value chain. Geologists rely
on technological innovation to help them discover
new, viable sources of diamonds in locations that
are often hard to access and difficult to work in,
such as the Arctic Circle. Mining companies also
look to technological innovation to keep operating
costs as low as possible. Rough diamond producers
are dependent on automated high-speed technology
to sort diamonds. Laboratories and cutting centres
rely on detection equipment to identify undisclosed
synthetics and treatments, which pose a challenge
to consumers’ confidence in diamonds.
‘The miracle of production’ explores the increasing
complexity and cost of mining diamonds. This section
explains what it takes to bring a diamond to the
market in the 21st century, and offers an insight into
the day-to-day realities and costs of diamond mining
at the extremes of the earth.