supply

The world’s production is dominated by four companies, namely De Beers, Alrosa, BHP Billiton and Rio Tinto which, together, are responsible for 70% of global production.

Rio's Argyle diamond mine is located in the north-east of Western Australia. The Argyle mine is the largest diamond producer in the world by volume, although due to the low proportion of gem-quality diamonds, is not the leader by value. It is the only known significant source of pink diamonds, producing 90 to 95% of the world's supply. The Argyle diamond mine is also notable for being the first commercial diamond mine exploiting a volcanic pipe of lamproite, rather than the more usual kimberlite pipe. The mine is owned by the Rio Tinto Group, a diversified mining company which also owns the Diavik Diamond Mine in Canada and the Murowa diamond mine in Zimbabwe.

Reserves
Initial proven reserves of the Argyle mine were 61 million metric tons (tonnes) of ore, with an average ore grade or diamond concentration of 6.8 carats (1.36 g) per tonne, about 400 million carats (80,000 kg). Further estimated reserves of 14 million tonnes of ore, at a grade of 6.1 carats (1.22 g) per tonne, 85 million carats (17,000 kg), also existed. As of 2001, reserves and resources in the open-pit mined area contain 220 million tonnes of 2.5 to 3.0 carat (500 to 600 m) per tonne graded ore, sufficient to sustain current production rates until 2007.

Economics
The Argyle diamond mine is economically feasible because its large reserves and high grade ore offsets a low average diamond weight value. The estimated value of Argyle diamond production is only 7 USD per carat ($35/g); this compares to values of 70 USD per carat ($350/g) for diamonds produced at the Diavik mine in Canada, and 170 USD per carat ($850/g) at the Ekati mine (also in Canada).[1] However, Argyle has two to four times the concentration of diamonds (ore grade) of these mines. This makes extraction economically feasible, as mine costs are mostly related to the amount of ore processed, not the amount of diamond which is extracted.

2007
Rio Tintos production from the Argyle diamond mine has dropped 30% this year so far, and they are now gearing up to turn it into an underground operation....costs will go up!

Did you know....
India is progressing into an independent position since sixteen sightholders of De Beers, five regular buyers from Rio Tinto and two from BHP Billiton have created a consortium called 'Diamond India' for obtaining rough directly from running mines, such as Alrosa.

Fancy colored diamonds are becoming the rage in the marketplace. More recently a new mode has appeared – the use of rough diamonds in very attractive jewelry designs.


Why wouldn't there be another bid?