The diamond industry produces an estimated $13 billion of rough stones on a worldwide basis each year — and over $62 billion of diamond jewelry.

(The Economist)

Diamond syndicate De Beers is estimated to control about 70% of the world’s rough diamond supplies — which are sold to 120 manufacturers and dealers at periodic sales. (Associated Press)

Which country leads production?

Botswana leads the world in rough diamond production, with 27% of total production by value (as of 2006) — followed by Russia (18%), Canada (12%), South Africa (11%) and Angola (11%).

(Financial Times)

What is Africa’s total share of production?

Africa produces 65% of the world’s diamonds.

(Financial Times)

But who’s really in charge?

Diamond syndicate De Beers controls 50% of the $13 billion rough diamond market.

(Financial Times)

What is the company’s history?

Formed more than a century ago to exploit diamond deposits in South Africa, De Beers used long-term purchase contracts with rivals to run a monopoly for seven decades — and amass a stockpile of gems worth $5 billion — before agreeing in 2000 to buy fewer of its rivals’ gems.

(Associated Press)

The diamond industry produces an estimated $13 billion of rough stones on a worldwide basis each year — and over $62 billion of diamond jewelry. (The Economist)

How has the market changed since then?

In the early 1990s, De Beers produced 45% of the world's rough diamonds but sold about 80% of the total supply from its London marketing outfit. Today, De Beers’ share of production is still about 40% — but it accounts for only about 45% of all rough diamond sales.

(The Economist)

Where are the world’s diamond hotspots?

Although five of the top seven diamond-producing countries are in Africa, most of the world's diamonds are polished elsewhere. India, the world leader, employs more than 800,000 people in diamond polishing.

(New York Times)

Where else?

More than 80% of the world’s rough diamonds pass through Antwerp in Belgium.

(European Commission)

What about New York City’s famed diamond district?

Accounting for 12.3% of New York’s exports, diamonds are the city's biggest export (as of 2005).

(U.S. Census Bureau)

But is a shift underway?

It is now estimated that less than 1% of diamonds traded are "conflict diamonds" — compared to estimates of 15% during the 1990s. (European Commission)

In 2008, De Beers plans to move its global sorting operation from London to a site under construction in Gaborone — capital of the world’s largest diamond producer, Botswana.

(International Herald Tribune)

Why hasn’t the industry moved part of its polishing operation to Africa sooner?

Because skilled labor is in relatively short supply, the estimated cost of cutting and polishing diamonds in southern Africa is $40 to $60 a carat. In comparison, the cost stands at $17 a carat in China — and $10 a carat in India.

(International Herald Tribune)

How else is the industry changing?

In 2006, De Beers signed a deal selling a 25% equity interest to a group of black investors in compliance with South African guidelines for black economic empowerment.

(International Herald Tribune)

Why are people concerned about so-called conflict diamonds?

Diamonds were used to finance some brutal wars seen in Africa during the 1990s — including conflicts in Angola, Sierra Leone and the Democratic Republic of Congo.

(European Commission)

What has been done?

Diamonds were used to finance some brutal wars seen in Africa during the 1990s — including conflicts in Angola, Sierra Leone and the Democratic Republic of Congo. (European Commission)

In 2003, more than 70 governments agreed to implement the Kimberley Process — a certification procedure for diamonds in partnership with the industry and some NGOs — without which countries cannot legally import or export diamonds.

(The Economist)

Has it worked?

It is now estimated that less than 1% of diamonds traded are "conflict diamonds" — compared to estimates of 15% during the 1990s.

(European Commission)

How is modern technology impacting the diamond industry?

Using technology that first emerged in 1955, when a team of scientists at General Electric transformed graphite into diamonds, gem-quality, man-made diamonds can be made in as little as four days — compared with the 100 million years it takes to form diamonds from carbon.

(Bloomberg)

How does it work?

The gems are grown from a diamond seed, which is put under 850,000 pounds of pressure per square inch and heat equivalent to the hottest molten lava — to imitate conditions about 100 miles below the earth's surface.

(Bloomberg)

And finally, why should the industry be worried?

Man-made one-carat stones cost $2,500, compared with $8,000 for natural stones of an equivalent grade.

(Bloomberg)