Diamonds & Diamond Grading Book 1 (Assignments 1-6) 2019

Diamonds &
Diamond Grading
BOOK 1
1. Introduction: Beyond the Essentials
2. Birth of the Modern Diamond Industry
3. The Modern Diamond Market
4. How Diamonds Form
5. Exploring for Diamonds
6. Diamond Mining
5/2019
Diamonds and Diamond Grading
Book 1
Assignment 1 Introduction: Beyond the Essentials . . . . . . . . . . . . . 1
Assignment 2 Birth of the Modern Diamond Industry . . . . . . . . . 25
Assignment 3 The Modern Diamond Market. . . . . . . . . . . . . . . . . 57
Assignment 4 How Diamonds Form . . . . . . . . . . . . . . . . . . . . . . . 91
Assignment 5 Exploring for Diamonds . . . . . . . . . . . . . . . . . . . . 117
Assignment 6 Diamond Mining . . . . . . . . . . . . . . . . . . . . . . . . . . 141
For Further Reading . . . . . . . . . . . . . . . . . . . . . . . 187

©
©2019 The Gemological Institute of America
All rights reserved: Protected under the Berne Convention.
No part of this work may be copied, reproduced, transferred, or
transmitted in any form or by any means whatsoever without the
express written permission of GIA.
Printed in the United States.
Cover photos (top to bottom):
GIA & Tino Hammid

Courtesy Harry Winston, Inc.
Andrew Lucas/GIA, courtesy Venus Jewel
Julien Grondin/iStockphoto
Harold & Erica Van Pelt, courtesy Mouowad Jewelers, New York
Courtesy BHP
Introduction: Beyond the Essentials 1
Understanding and Using Diamond Grades. . . . . . . . . . . . . . . . . . . . . . . 6
Diamond Grading Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Wholesale Price Lists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Beyond the Lab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Appraisals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Why Diamond Formation and Mining Matter . . . . . . . . . . . . . . . . . . . . 14
Formation and Delivery to the Surface . . . . . . . . . . . . . . . . . . . . . . . 15
How Mining and Processing Contribute to Value. . . . . . . . . . . . . . . 17
What’s to Come . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Checking Your Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
The Final Examination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Help Isn’t Far Away . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Key Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Key Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
1
Welcome to Diamonds and Diamond Grading Assignment 1.
With the knowledge you gain from this assignment, you’ll be able to:
• Understand the importance of diamond grades and how they relate to value.
• Interpret and effectively communicate the meaning of diamond grading reports.
• Understand how diamond grading reports are used by wholesale and retail
professionals and appraisers.
• Relate knowledge of diamond formation and mining to an understanding of
diamond value.
2
I NTRODUCTION: B EYOND THE ESSENTIALS
Eric Miller/iAfrika Photos
A piece of diamond rough, fresh from the mine, is admired before it makes its way into the dynamic diamond market.
INTRODUCTION:
BEYOND THE ESSENTIALS
This assignment begins the next stage of the journey you began in
Diamond Essentials. In that course, you gained a basic understanding of
diamond grades and how they relate to value, as well as how the diamond
market operates at the retail level. Diamonds & Diamond Grading builds
on that foundation. You’ll learn—in more detail—about diamond grades
and grading. You’ll also explore the diamond industry beyond its retail
level to gain an understanding of diamond value in other market segments.
One of the most remarkable things about the diamond trade is how
dynamic it is. The industry has changed significantly in recent years, and
the world supply of diamond rough has increased tremendously.
Abundant new sources were discovered in Australia and Canada. One
mine in particular—the Argyle mine in Australia—caused dramatic
growth in India’s diamond cutting industry, which processes large
numbers of inexpensive diamonds. This made diamonds available to a
wider consumer base.
3
DIAMONDS AND DIAMOND G RADING 1
Welcome to Diamonds and

Diamond Grading, where you’ll
build on the knowledge you
gained in Diamond Essentials.
When you’ve successfully
completed this course and the
Diamond Grading Lab Class:
• You’ll have a solid foundation

of diamond and jewelry
knowledge and skills.
• You’ll understand and be able

to apply the GIA Diamond
Grading System and the Four
Cs when buying or selling
diamonds.
• You’ll be able to use

specialized gemological
equipment to judge and grade
the color, clarity, and cut of
loose and mounted diamonds.
• You’ll understand the structure

of the diamond industry, from
mining through production
and marketing, up to final
retail sales.
• You’ll qualify for a variety of

industry positions such as
diamond grader, diamond
sales associate, assistant
buyer, and customer service
representative.
Christie’s Images Inc.
Diamonds sold at auction, like the fancy cuts in this suite, usually command
very high prices because of their exceptional quality. This course will help you
understand the factors that contribute to diamond value.
Even De Beers, which was a stabilizing force in diamond supply and

value for most of the twentieth century, has undergone astounding
changes in recent years. Those changes—which you’ll learn about in
this course—will reverberate throughout the industry for quite some
time.
There have also been many advances in diamond technology. Some
4
Joel Beeson/GIA
Behind the scenes, the diamond This parcel of tiny diamonds is from the
industry bustles with activity at many Argyle mine in Australia. This source
levels. made diamonds affordable for a wider
range of consumers.
Joe Richard/University of Florida/AP Wide World Photos Shane McClure/GIA
Advances in diamond technology, like the use of high pressure, high temperature
equipment (left) to create marketable laboratory-grown diamonds (right), have a
far-reaching impact on the diamond industry.
scientists developed new treatments for improving color and clarity. And
others have explored the way diamond interacts with light, inspiring
greater appreciation of the diamond cutter’s skills.
Diamonds are beautiful, desirable objects: They always have been
and always will be. This course will deepen your understanding of these
special gems.
5
Eric Welch/GIA
Windows in New York’s 47th Street diamond district feature dazzling displays of diamonds and diamond jewelry. Diamond grades
make it possible to accurately describe diamonds at all levels of the market.
UNDERSTANDING AND USING DIAMOND GRADES

■ Why are diamond grades important?
■ What does a diamond report tell you?
■ How do market factors affect diamond value?
Diamond grades make it possible for people to discuss diamonds simply

and concisely. Without a recognized and consistent system, you’d have to
describe the quality of a K-color diamond with VS1 clarity like this: “The
diamond is a very faint yellow: The color is so faint that you can barely
see it. And the diamond has two small, included crystals under the table.
They’re so small that you can barely see them under 10X, and then only
if you know what you’re looking for.”
It’s easy to see that calling the diamond a “K-VS1” is much simpler. But
the system only works if it’s widely understood. The grades developed by
GIA—the ones you started learning in Diamond Essentials—are used and
accepted around the world. They’re part of the international language of
diamond professionals.
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Diamond grades can help you compare one diamond with another. A Ke y C o n c e p t s
diamond with a grade of D-Flawless is very different from one with a grade
of M-I1. But each has its place in the market. If you’re buying a diamond
Diamond grades provide a consistent,
for resale, you have to understand the connection between grading and
standardized way of communicating
value to know which is the best choice.
and comparing diamond quality.
A diamond’s grade indicates its quality, but it’s only part of what
determines the diamond’s value. There are many variables to consider. Diamond grades are only part of the
For example, the value of a 1.01-ct., nicely proportioned, princess-cut determination of diamond market
diamond with H color and SI1 clarity depends on its place in the market. value.
Two retailers might assign radically different values if they’re located in
different countries. And diamond values are very different for retailers
than they are for wholesalers. Wholesalers don’t sell directly to consumers,
so their prices are somewhat lower than retail prices.
Diamond grades have many different uses. For gemological laboratories,
grades are simply statements of diamond quality. Some people use grades to
determine value and to decide whether or not to buy, or to match diamonds
for jewelry. A diamond grade might be part of an appraisal, as one step in
the evaluation of a finished piece of jewelry.
Diamond grades are constant: They don’t change because they’re used
in appraisals rather than sales presentations. The decisions people make
based on the grades do change, though. This is why a consistent and
repeatable system for diamond grading is an essential part of the modern
diamond market.
Wholesaler—Someone who sells

to retailers rather than directly to
consumers.
Appraisal—An estimation of the

value of an article, usually for
insurance purposes.
Joel Beeson/GIA
Wholesalers provide a valuable service to the industry by providing retailers with

access to diamonds of every quality level.
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Hands-On Training
In this course, you’ll learn
how and why diamonds
are graded. You’ll also
learn about factors beyond
the Four Cs that contribute
to diamond value. By the
time you finish, you’ll have
a comprehensive under-
standing of diamonds,
diamond grades, and how
the diamond market
operates.
However, working with
real diamonds is the only
way to gain the practical
experience you need to be
able to accurately evaluate
diamond quality.
The on-campus GIA
Graduate Diamonds
Program and the GIA
Kevin Schumacher/GIA
Diamond Grading Lab

Enrollment in the on-campus GIA Graduate
Class give you the oppor-

Diamonds Program and the GIA Diamond
Grading Lab Class includes hands-on
training from expert instructors.
tunity to practice the
grading methods and
techniques you need to assess a diamond’s color, clarity, and cut.
You will experience the intricate details of GIA Diamond Grading
under the guidance of trained, professional instructors.
DIAMOND GRADING REPORTS
Reputable gemological laboratories, like the GIA Laboratory, are the

most consistent and dependable sources of diamond grades. The grades
are recorded on diamond grading reports that list the quality factors
represented by the Four Cs: clarity, color, cut, and carat weight.
Diamond grading reports—some people call them certificates, or
certs—date back to the middle of the twentieth century. They’ve become
an enormously important part of the modern diamond trade.
8
John Schule Photography
GIA diamond grading reports are internationally recognized statements of diamond quality.
Gemological laboratories grade hundreds of thousands of diamonds a

year. That much repetition makes the grades on the reports highly reliable
and consistent.
Systems at most major gemological laboratories are adapted from the
GIA Diamond Grading System because other labs know that the GIA
system is universally accepted. Even if a grade is based on the GIA system,
however, the only source of an authentic GIA diamond grade is the GIA
Laboratory.
A quality report from a reputable lab allows a retailer or dealer to
choose a diamond without seeing it. Imagine that a Canadian retailer in
Calgary, Alberta, needs a center stone for a ring he’s designing. He
contacts dealers in Toronto, New York, and other large cities to see what
they have in stock.
A Toronto dealer has the diamond he’s looking for: a 1.53-ct. E-VS1
round brilliant with a cut grade of Excellent. The dealer faxes the jeweler
a copy of the diamond’s grading report. The retailer likes what he sees
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in the report and orders the diamond sight-unseen. Transactions like this
happen every day, with diamonds being constantly bought and sold on
the strengths of their reports.
A report can also work the other way: You can check a diamond that’s
accompanied by a quality report to make sure it matches its description.
This protects you against switched stones.
WHOLESALE PRICE LISTS

Like diamond grading reports, published wholesale price lists are
important tools for the diamond trade. They’re also relatively new—
dating back to the 1970s. The wholesale prices on the lists are based on
Joel Beeson/GIA
specific combinations of the Four Cs. The suggested prices depend very
Several companies publish guides that
strongly on the market conditions that exist at a particular time.

list wholesale diamond prices based on
the Four Cs. Prices on the lists often
Wholesale price lists have some limitations, which you’ll learn about
vary, but they help buyers and sellers
determine reasonable price ranges.
in Assignment 20, but a diamond professional can compare a diamond’s
quality report to its listed value, determine the diamond’s fair price, and
decide whether or not to buy or sell it.
Wholesalers usually sell goods in large quantities, and retailers or
jewelry manufacturers who buy very large quantities often get substantial
price discounts.
Ke y C o n c e p t s
The listed wholesale prices of diamonds
depend on the market conditions that
exist when the lists are published.
Eric Welch/GIA
Diamond traders usually deal in large quantities of diamonds. To keep the inventory
organized, they wrap each stone in a plain paper package marked with the diamond’s
identifying features.
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BEYOND THE LAB Ke y C o n c e p t s

Grading skills are useful—in some cases essential—if you work for a Large, high-quality diamonds are
dealer, jewelry manufacturer, or retailer. And you’ll probably deal with a graded much more thoroughly than
wider range of goods than graders in gem labs. You’ll see everything from
large, fine stones to tiny ones.
small, low-quality ones.
Usually, the amount of attention a diamond gets depends on its quality

and value. Large, high-quality stones deserve a lot of attention, especially
if they haven’t yet been graded by a reputable lab. On the other hand, it’s
not worthwhile to spend a lot of time grading small, low-quality stones. A
quick examination under a loupe is usually all they get.
The graders in gemological labs have an advantage over many others in
the industry: They don’t handle mounted diamonds. Mounted diamonds
make up the majority of the goods in many jewelry businesses, especially
retail stores. Some gem labs don’t grade mounted diamonds because the
mountings hide clarity and cut details, mask color, and make it impossible
to weigh the diamonds.
Small diamonds are often sorted rather than graded individually. A 10-ct.
parcel of small rounds, for example, might contain about 335 small
diamonds that weigh about 3 pts. (0.03 ct.) each. It wouldn’t be cost effec-
tive to grade each tiny diamond. So the dealer might put them through a
series of sieves and sort them by size, and then sort the various sizes into
Alex Mak/ORO Diamante Inc.
Diamond-grading skills are important in

jewelry stores, where you deal with
diamonds of all sizes. It’s also important
to be familiar with other gems as well as
with jewelry metals.
Joel Beeson/GIA
Very small diamonds are graded less strictly than larger ones. Most professionals
simply sort them by size and color.
11
Tino Hammid/GIA
No matter what their size, diamonds in fine-quality jewelry are professionally matched.
The Van Cleef & Arpels platinum watch case and band (above) are set with carefully
selected baguettes and tiny round brilliant diamonds. The diamonds in the three-
stone ring (left) match closely in color, clarity, proportions, and face-up appearance.
smaller piles based on color. The dealer might not even look for clarity
characteristics. Parcels of melee are usually sold by clarity range—if the
supplier is reputable, the dealer can trust that the diamonds in the parcel
will be within the requested clarity range.
Sorting and matching is useful for more than loose diamonds. When
manufacturers mount diamonds together in the same piece of jewelry,
they take care to ensure that each stone matches the others in terms of
size, cut, color, and clarity. If the diamonds are well matched, it’s a sign
that the manufacturer took care with the piece, and it’s likely that the same
attention to detail also applies to the jewelry article’s execution and finish.
It’s easier to sell a well-finished piece of jewelry containing precisely
matched diamonds—no matter what their clarity grade—because you can
justify its price to your customers.
12
Jack Kelége
Most appraisals involve mounted

jewelry, like engagement rings and
other estate pieces. This makes grading
diamonds especially challenging, since
settings can hide many of the character-
istics that help set diamond value.
Eric Welch/GIA
Diamond grading skills are crucial to an appraiser’s success. It’s important to be

able to evaluate each component of a jewelry item—from the gems to the metal—
and estimate its overall value.
APPRAISALS
Appraisers face the same challenges as their colleagues in retail stores:
Most of the time they deal with mounted diamonds. They have to be able
to make accurate color and clarity grading calls despite this limitation.
Similarly, appraisers can’t weigh mounted diamonds, but they can estimate
weights by measuring dimensions and considering proportions. As you’ll
learn in Assignment 17, the grade and weight estimations of mounted
diamonds always include a statement that they’re as close as possible
within the limitations imposed by the mounting.
A piece of diamond jewelry can have different appraised values
because there are many different types of appraisals. The most common
type is an appraisal for insurance replacement. This contains a description
13
of the jewelry—everything from the Four Cs of the gems to the jewelry’s

design to the karat weight of the metal. An insurance company can use the
appraisal to replace the item if it’s lost or stolen.
Insurance replacement appraisals include a value for the jewelry item.
That value might be quite different from an appraisal done to determine
its liquidation value. Liquidation appraisals apply a value to the item for
immediate sale.
WHY DIAMOND FORMATION AND MINING

MATTER
■ Why are good-quality diamonds so valuable?
■ How did abundant new diamond supplies affect the market?
■ How does formation affect value?
Diamonds are more available and affordable today than at any other time
in history. At the same time, while diamonds are relatively abundant, dia-
monds with high clarity and good color are still quite rare.
Diamonds form under tremendous temperature and pressure. Then
they’re brought to the earth’s surface in cataclysmic eruptions at rare
times throughout the earth’s long history. The geologic process that brings
diamonds to the surface is so violent and explosive that it’s a miracle that
diamonds survive it. In fact, large crystals rarely survive intact.
Diamond formation and mining are covered in more detail later in this
The Argyle diamond mine in Australia
course. This brief introduction will help you understand why these subjects
produces mainly small diamonds for
use in affordable, mass-market jewelry.
are important to an appreciation of the many factors that affect diamonds
and diamond value.
GIA & Tino Hammid
Considering their treacherous ride to the earth’s surface, these rough crystals
remained amazingly intact.
14
Diamond’s specific formation condi-
tions are directly responsible for its
hardness and durability as a gem.
The unique physical properties of

gem-quality diamonds allow them to
survive environmental forces better
than any other gemstone.
Anthony Bannister/Gallo Images/Corbis
Once diamonds break free from their host rocks, they’re sometimes incorporated
into sedimentary rocks until they’re released again through erosion.
FORMATION AND DELIVERY TO THE SURFACE

As you learned in Diamond Essentials, diamonds owe their incredible
durability and beauty to their formation process. Formation under just
the right temperature and pressure conditions results in the crystal
structure that causes diamond’s supreme hardness and desirable optical
properties. If there’s a slight variation in temperature or pressure, or if
the diamonds take too long to reach the surface, the result is graphite,
not diamond.
Once gem-quality diamond crystals are delivered to the surface, they
often survive millions of years of battering in rivers, streams, and ocean
tides. Many are even incorporated into new sedimentary rocks, re-released
into the environment by weathering, and transported many hundreds or
thousands of miles without significant damage.
That’s the case with the diamonds of Namibia, on the western coast of
Africa. The diamonds arrived at the earth’s surface millions of years ago
in the African interior. Then the forces of erosion released the diamond
crystals from the rocks around them and the gems were gradually washed
westward in the Orange River to the Atlantic Ocean, creating what might
be the world’s largest deposit of gem-quality diamonds.
Estimates of the number of diamonds on and near the coastline run as
high as 1.5 billion carats. Experts also think that between 90 and 95
15
Eric Welch/GIA
Diamonds from Africa’s interior made their way to the country’s western coast (top
left), where workers carefully excavate them from manmade trenches (above). The
high cost of diamond mining contributes to the sale price of each individual stone
(bottom left).
percent of them are gem quality. The percentage is high because crystals
with large fractures and other structural defects don’t survive the journey
between the continental interior and the ocean. Only the strongest gems
make it.
Offshore diamond resources are some of modern diamond mining’s
newest frontiers. You’ll learn about the technology that makes undersea
diamond mining possible in Assignment 6.
16
Diamond exploration requires a global perspective. Prospectors must consider how

marketable the mine’s diamonds are as well as how mining will impact the surrounding
ecosystem.
Environmentalists monitor the fish population surrounding Canada’s Ekati diamond

mine to help determine any potential damage.
HOW MINING AND PROCESSING CONTRIBUTE TO VALUE

While technology has made the job of locating diamond deposits easier
and more efficient, prospecting for diamonds is still a costly proposition.
And diamond exploration isn’t for the faint of heart. Because of the vast
capital outlay needed to find and develop a mine, mining companies
need huge financial resources. And they must think of time in terms of
decades.
17
Peter Johnson/Corbis
The quality of a diamond mine’s output is an important consideration for a prospective

mining company. The stones must be of a certain size, quality, and value to make mining
profitable.
18
© Royalty-Free/Corbis
Many people are surprised when they discover how much effort and expense it takes
to bring a beautiful diamond to a bride’s finger.
Finding the diamonds is only part of the process. Once prospectors

locate a promising area, the mining company must spend additional time
and money to develop it. Canada’s Ekati mine took years of exploration
The huge financial costs involved in
to locate, and more than $700 million to develop, but the potential profits
locating, developing, and operating
are huge. Experts consider Ekati’s unmined diamond reserves to be in diamond mines are factors affecting
excess of $8 billion at current prices, and project a 25-year lifespan for diamond value.
the mine.
There are many places around the planet that might contain diamond
deposits, but not all of them do. And not every diamond deposit is valuable
enough to develop into a profitable diamond mine. Mining companies
must consider several factors when they decide whether or not to develop
a mine at a given site.
They have to consider how many tons of diamond-bearing rock a deposit
might contain, as well as the concentration of diamond rough within the
deposit and the size, quality, and value of the diamonds themselves. They
also consider the location and accessibility of the diamond deposit as well
as the host country’s political stability and legal requirements, like taxes
and environmental legislation.
Even the smallest diamond must be located and mined, which repre-
sents an enormous investment in time and money. As a result, the costs
of finding and mining diamonds are significant factors affecting overall
diamond value.
19
The GIA Diamonds & Diamond Grading course was designed to help you understand the complex and dynamic world of diamonds.
WHAT’S TO COME
■ What do the assignments in this course cover?
■ How can you get the most benefit from this course?
The information in this course is divided into sections. Assignments 2 and

3 contrast the diamond industry’s birth with the tumultuous changes of the
last several years. Assignments 4, 5, and 6 take you through the story of
diamond formation, prospecting, and mining. Assignments 7 and 8 explore
the unique physical and optical properties that make diamond an unparalleled
gem, while Assignment 9 documents the evolution of diamond cutting.
Assignments 10 through 16 take you through the quality factors—
clarity, color, and cut—that allow you to assess the quality of a finished
diamond. Assignment 17 introduces you to weight estimation for mounted
diamonds, and discusses repairing and recutting diamonds.
Assignments 18 and 19 introduce you to the newest diamond simulants
and treatments, including techniques that use high pressure and temperature
to improve diamond color. Assignment 20 will help you apply what you’ve
learned to practical trade situations.
Here’s what’s ahead in more detail by assignment:
Assignment 2—Birth of the Modern Diamond Industry: You’ll learn
how the diamond market—and De Beers—operated through its first
hundred years or so. You’ll learn about the birth of the organization that
still dominates the diamond business today.
Assignment 3—The Modern Diamond Market: This assignment
explains how the diamond market changed, with powerful new players
entering the diamond mining and trading arena, and how De Beers
modified its operation to compete.
20
Assignment 4—How Diamonds Form: This is a look at formation and

how it’s directly related to diamond’s unique properties.
Assignment 5—Exploring for Diamonds: This assignment shows that,
with diamond demand greater than ever before, mining companies are
using much more sophisticated methods to locate diamond deposits.
Assignment 6—Diamond Mining: This assignment shows you what
it takes to get a diamond mine operating. It also explains why very few
companies can do it.
Assignment 7—The Diamond Crystal: This assignment expands on the
formation assignment. It explains how the properties of a diamond crystal
affect the way it’s fashioned, and provides insight into how rough diamond
crystals are valued.
Assignment 8—Diamonds and Light: After an introduction to basic
light science, you’ll see how GIA researchers are changing the way the
trade views diamonds and diamond beauty.
Assignment 9—The Evolution of Diamond Cutting: You’ll get a survey
of diamond cutting, from early cutting styles to today’s technologically
advanced manufacturing techniques.
Assignment 10—Finding and Identifying Clarity Characteristics: You’ll
see how diamond graders identify the various types of diamond clarity
characteristics and determine which ones have the most impact on beauty,
durability, and value.
The assignment on diamond mining will deepen your understanding of how diamonds make their way from
the earth into our lives.
21
Assignment 11—Grading Clarity: You’ll learn how graders assess the

impact of clarity characteristics on diamond value and assign a GIA
clarity grade.
Assignment 12—Diamonds and Color: This assignment explains how
color happens in diamonds. You’ll learn which colors are the most valuable.
Assignment 13—Grading Color: You’ll learn about the color-grading
process for diamonds in the normal and fancy-color ranges.
Assignment 14—Grading Proportions—Table, Crown, and Girdle: This
assignment shows how diamond dealers and graders assess the proportions
of a diamond’s crown and calculate table size, crown angle, and girdle
GIA & Tino Hammid thickness.
Assignment 15—Grading Proportions—Pavilion and Culet—and
Two assignments cover the fascinating
Evaluating Finish: You’ll learn how to assess the diamond’s pavilion,

and complex topic of diamond color.
culet size, and finish, and how to estimate its cut grade.
The first explores how color occurs in
diamonds, while the second explains
Assignment 16—Grading Fancy Cuts: Fancy cuts are a major part of

how graders evaluate diamond color.
the diamond market. You’ll see how to assess fancy-cut diamonds for
quality of cut, color, and clarity, and how they’re judged differently from
round brilliants.
Assignment 17—Estimating Weight, Recutting, and Repolishing: Here,
you’ll learn how to estimate the weight of mounted diamonds and see how
cutters repair damaged stones.
Assignment 18—Diamond Simulants: This assignment introduces you
to the most common and the most effective diamond simulants.
Assignment 19—Laboratory-Grown Diamonds and Treatments: You’ll
learn how treatments can reduce color or introduce color into diamonds as
well as how lab-grown diamonds are made and how they differ from natural
diamonds. You’ll also learn about the most current ways to detect treatments
and lab-grown diamonds.
Robert Weldon/GIA
Assignments 14, 15, and 16 explain the fundamental facts about the proportions of
round and fancy-cut diamonds, and how graders assess them.
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Assignment 20—Succeeding in the Marketplace: This assignment

discusses how to employ the skills and techniques you’ve gained throughout
the course. You’ll learn how to read a diamond price list and how to apply
some common techniques to assess diamonds in finished jewelry, matched
sets, or loose in parcels.
As you work your way through the course, you’ll find that your reten-
tion increases as your study habits become consistent. Underline or
highlight italicized words in the text and keep a dictionary handy—all
of the gemological terms are explained in the course, but occasionally
you might come across words that are unclear to you.
CHECKING YOUR PROGRESS

The short questionnaires you’ll complete in Diamonds & Diamond Grading
The Graduate Diamonds diploma is a
are great ways to determine what you’ve learned and what you might have
major milestone in your journey toward
missed. The questionnaires also give GIA an idea of your progress.

the prestigious Graduate Gemologist
diploma (G.G.).
Another terrific way to check your progress is to take another look at

the Key Terms and Key Concepts at the end of each assignment. If you
run across a term or concept that isn’t clear to you, you can easily turn
back to the part of the assignment where it’s discussed in detail. Just look
for its mention in the margin.
Now that you’ve finished Assignment 1, complete the first questionnaire.
It’s important to do the questionnaires as soon as you finish the assign-
ments—you might forget some of the information in the assignments if you
put the questionnaires aside to do later.
THE FINAL EXAMINATION

There will be a proctored final exam at the end of the course. You must
complete each questionnaire with a minimum score of 75 percent in order
to take the final exam. (You can retake the questionnaires as many times as
you need to.) When you complete and pass all the questionnaires, you can
schedule your final exam. Then, to receive your Diamonds & Diamond
Grading certificate, you must score at least 75 percent on the final.
HELP ISN’T FAR AWAY

GIA instructors are gemology experts with many years of trade experi-
ence. They’ll answer your questions, clarify any parts of the text that you’re
unsure of, and help you with study hints. You’ll also get feedback in the
form of comments that accompany the answers to your questionnaires.
By using all the resources available to you as you progress through this
course and others you might take in the future, you’ll get the most out of
your GIA learning experience.
23
Diamond grades provide a consistent, standard- Diamond’s specific formation conditions are
ized way of communicating and comparing directly responsible for its hardness and durability
diamond quality. as a gem.
Diamond grades are only part of the determination The unique physical properties of gem-quality
of diamond market value. diamonds allow them to survive environmental
forces better than any other gemstone.
The listed wholesale prices of diamonds depend
on the market conditions that exist when the lists The huge financial costs involved in locating,
are published. developing, and operating diamond mines are
factors affecting diamond value.
Large, high-quality diamonds are graded much
more thoroughly than small, low-quality ones.
Key Terms
Appraisal—An estimation of the value of an Wholesaler—Someone who sells to
article, usually for insurance purposes. retailers rather than directly to consumers.
24
Birth of the Modern Diamond Industry 2
The First South African Diamond Mines. . . . . . . . . . . . . . . . . . . . . . . . 29
Important Diamonds Attract Attention . . . . . . . . . . . . . . . . . . . . . . . 29
Kimberley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
The First Miners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Cecil Rhodes Takes Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
The Diamond Market’s Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Gaining Market Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
The Great Depression . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
World War II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Single-Channel Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
History of Rough Diamond Distribution . . . . . . . . . . . . . . . . . . . . . . . . 51
Sorting Rough . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Sights and Sightholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
The Changing Diamond Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Key Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Key Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
25
• Identify important events in the history of the diamond industry.

• Explain the role of De Beers in the industry’s development.
• Understand how the diamond industry adjusted to changing market conditions.
• Describe the development of the De Beers diamond distribution process.
26
B IRTH OF THE MODERN DIAMOND I NDUSTRY
Chris Bell/FPG International LLC
The modern diamond market’s story started with lone miners sifting diamond rough out of the dirt. Today—
more than 100 years later—it’s a highly mechanized, multimillion-dollar international industry.
BIRTH OF THE MODERN DIAMOND

INDUSTRY
The world’s love of diamonds had its start in India, where diamonds were
gathered from the country’s rivers and streams. Some historians estimate
that India was trading in diamonds as early as the fourth century BC. The
country’s resources yielded limited quantities for an equally limited market:
India’s very wealthy classes. Gradually, though, this changed. Indian dia-
monds found their way, along with other exotic merchandise, to western
Europe in the caravans that traveled to Venice’s medieval markets. By the
1400s, diamonds had become fashionable accessories for Europe’s elite.
In the early 1700s, as India’s diamond supplies began to decline, Brazil
emerged as an important source. Diamonds were discovered in the pans
of gold miners as they sifted through the gravels of the Amazon River and
its tributaries. Once it reached its full potential, Brazil dominated the dia-
mond market for more than 150 years.
While sources changed, the diamond market experienced its own evo-
lution. The old ruling classes—diamonds’ biggest consumers—were in
27
Abundant South African diamond
sources appeared in the late 1800s,
just as diamond demand broadened.
Elio Ciol/Corbis
In the 1800s, wealthy citizens—like this European family—replaced the ruling classes
as the main consumers of diamond jewelry.
Harold and Erica Van Pelt/GIA
This 1830s ring features a portrait of England’s king at the time—William IV—painted
on either ivory or mother-of-pearl. A table-cut diamond protects and displays the art-
European nobility, like Empress Marie
work, which is surrounded by brilliant-cut diamonds.
Louise of France, were still enthusiastic
decline by the late 1700s. Political upheavals like the French Revolution
diamond buyers in the early 1800s, but
led to changes in the distribution of wealth.

they were soon outnumbered by the
growing and increasingly prosperous
The 1800s brought increasing affluence to western Europe and the United
wealthy class.
States. This broadened the demand for all kinds of luxury goods, including
diamonds. In the late 1800s, just in time to satisfy the expanding market,
explorers unearthed the first great South African kimberlite pipes.
28
The buying and selling of diamonds is now a multibillion-dollar inter-

national industry. The factors that contributed to its phenomenal growth
are part of the diamond trade’s history. As you’ll see, it’s a history of hard
work as well as of political and social upheaval.
The story of the modern diamond market really begins on the African
continent. In this assignment, you’ll learn about the diamond trade’s devel-
opment and the evolution of its market structure. This history will give you
a better understanding of its status today. It will also help you appreciate
the changes in the market as it moves into the twenty-first century.
THE FIRST SOUTH AFRICAN DIAMOND MINES

■ What were the first important South African diamond discoveries?
■ What were conditions like in the early mining towns?
■ How did Cecil Rhodes gain control and establish De Beers?
There are many stories about the exciting early years of South African
diamond exploration. Some tell of children playing with shiny stones that
turn out to be diamonds. Or of people stumbling on fortunes in piles of
Corbis
dirt. But the fact is that, with a few notable exceptions, most diamond
By the early 1870s, the diamond rush
finds were far from accidental. Attracted to the area by a few early
had begun in the diamond fields of
South Africa. The cover of this October
discoveries, geologists and mineralogists were searching for diamond
1872 issue of the London News
deposits and offering rewards for information leading to them.

featured diggers and their assistants
sorting rough diamonds at a claim site.
As they came to light in the late 1800s, the South African sources
affected many segments of the diamond industry. This was especially
true, as you’ll see, as diamond mining moved farther underground.
Because of the huge costs involved, the new sources forced the develop-
ment of more efficient mining techniques. They created the need for better
marketing. They also led to advances in cutting and polishing—advances
that increased efficiency, reduced costs, and enhanced the appearance of
finished stones.
The new abundance of diamonds brought problems, too. More than
Single-channel marketing—A
once, overproduction caused prices to drop. This inspired early diamond

direct, centrally controlled market-
entrepreneurs to look for ways to balance supply and demand—and keep

ing route for rough diamonds.
prices stable. The idea of single-channel marketing took root in those

early years and eventually grew into the Central Selling Organisation
Central Selling Organisation
(CSO), designed to purchase, sort, evaluate, and sell rough diamonds. For
(CSO)—An agency designed to
purchase, sort, evaluate, and sell
decades, the CSO served as the marketing and distribution channel for rough diamonds.
rough diamonds from mines all over the world.
IMPORTANT DIAMONDS ATTRACT ATTENTION

The story of Africa’s diamonds began in 1866 with the discovery of a
21.25-ct. rough diamond on a farm south of Kimberley, South Africa.
There is evidence of other discoveries, some as early as 1854. But the
“Eureka,” as it was called, was the first to be authenticated.
29
AFRICA
TRANSVAAL
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CAPE COLONY 2. Dutoitspan Mine v
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3. De Beers Mine
Area of Major
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4. Kimberley Mine
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Alluvial
r
Diggings
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Cape Town 3
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Peter Johnston/GIA
The Kimberley area was the center of South African diamond mining in the late 1800s. The discovery of the Star of South Africa
at Zandfontein in 1869 attracted prospectors to the area. Then came the discovery of the mines at Jagersfontein and in the
Kimberley area. The Premier mine, farther north, was discovered in 1903.
After the Eureka, almost three years passed without major discoveries,
and interest in diamond exploration faded. Then in 1869, the Star of
South Africa—a magnificent 83.50-ct. rough diamond—renewed dia-
The diamond rush began with the
mond fever. Prospectors searched the banks of the Vaal river, where it
discovery of the Star of South Africa
in 1869. was found. They unearthed more diamonds nearby and the real rush
began.
People came to the diamond fields from all over the world in search of
opportunity and riches. Most of the early prospectors were English, but
some came from other European nations, some from North America, and
some from Australia.
30
Prospectors came from all over the world to the diamond fields of South Africa. Some
took advantage of pontoon boats to cross the Orange River.
Diggers offered wages for help with their claims. Many South African men traveled
long distances to the Vaal River diamond fields in search of work.
Diamond prospectors, called diggers, paid wages to field workers, so Digger—An independent diamond
many South African men traveled long distances to work in the mines. Most prospector.
of them left families behind for the first time, but the promise of regular
wages, and money to return home with, made the journey worthwhile.
Diggers combed through the gravel and staked claims up and down the
Vaal River. An estimated 10,000 people poured into the area and set up a
string of camps. Meanwhile, a few diamond finds in the surrounding hot,
dry plains caught the attention of some prospectors. Some of those finds
were accidental: One man discovered a handful of small diamonds while
mixing mud to build his house.
31
Diggers came to the Vaal River from More than 10,000 diggers set up camps around the Vaal River and surrounding
Europe, North America, and Australia. plains.
Their simple equipment consisted
mostly of picks and shovels.
In spite of the primitive mine conditions of the 1870s, some Vaal River diggers
brought their families along for help and companionship.
Dry diggings—A prospector’s Soon, there were enough discoveries to attract some diggers away from
term for diamond deposits away the crowded riverbed. There, they started the first dry diggings. Away
from water. from the river, they needed only picks and shovels. And they didn’t have
to stand in water for hours or risk a flooded claim.
32
A Diamond That Changed History

THE STAR OF SOUTH AFRICA
(THE DUDLEY)
Weight: 83.50 cts. rough, 47.69 cts. cut
Clarity: reported flawless
Cut: pear-shaped brilliant
Source: Zandfontein Farm, South Africa
In March 1869, a shepherd picked up a pebble that

caught his eye. He tried to barter the strange stone,
first for a place to sleep, then for breakfast. Everyone
he approached turned him down.
Finally, he found his way to Schalk van Niekerk,
a local farmer who, a few years earlier, had been
given what proved to be the 21.25-ct. Eureka.
Van Niekerk recognized the shepherd’s “pebble”
as a diamond—four times the size of the Eureka!
He gave the shepherd a horse, 10 oxen, and 500
sheep—a package worth about £150—in exchange
for the gem. He could only guess what the rough
would yield, so it was a gamble to pay such a high
price. His gamble paid off: He sold the diamond
for £11,200 (then equal to US$56,000).
The huge gem was named the Star of South
Africa and displayed in the South African
Parliament building. Legend has it that it prompted
the colonial secretary to predict, “This diamond,
gentlemen, is the rock upon which the future pros-
The Star of South Africa, in its rough
form, was purchased for £150 worth
perity of South Africa will be built.”
of livestock in 1869. It became a
Actually, there is no evidence the secretary or

magnificent pear-shaped gem that
brought more than US$500,000 at a
anyone else ever said that. But the Star’s discovery Christie’s auction in 1974.
sparked the diamond rush that followed. The

industrialized world suddenly stopped looking at South Africa as just a struggling
agricultural country.
Louis Hond, a London cutter, bought the Star in 1870 and fashioned it into a
47.69-ct. pear-shaped brilliant. He sold the gem to the Earl of Dudley for what was
then equivalent to US$125,000. Lady Dudley had it set in a hair ornament surrounded
by 95 smaller diamonds. Since then, it has sometimes been called the “Dudley.”
The diamond passed out of the Dudley family around 1929. It resurfaced in May of
1974, when Christie’s Geneva sold it at auction. At that time, it was set in a detach-
able pendant with smaller brilliant-cut diamonds. An unnamed buyer paid more than
£225,000 (then equal to US$500,000) for it.
33
In 1870, miners who worked the dry diggings at Dutoitspan, South Africa, lived in tents scattered around the arid countryside.
KIMBERLEY
Those dry diggings led to the discovery, in 1869, of deposits that became
the Bultfontein and Dutoitspan mines. Both were located in what was to
become the booming diamond town of Kimberley. These discoveries and
those that followed in 1870 and 1871—including the deposits that became
the De Beers and Kimberley mines—changed the diamond industry and
South Africa forever.
Today Kimberley is a modern city of over 100,000, but back then it was
a makeshift mining town. It materialized out of the barren surroundings
almost immediately after the first diamond discoveries. The first to arrive
were the diggers. Within a short period of time, they set up residence in
thousands of tents that cluttered the countryside. Some historians estimate
that at one time, the population of Kimberley—including diggers, their
hired laborers, and their family members—reached as high as 50,000.
In those early days, Kimberley was a fairly peaceful town. Its residents
J. Haskin
The centerpiece of this brooch is a

were generally law-abiding, and few of them owned guns. The Diggers’
Committee, a citizens’ group formed to keep the peace, dealt with the iso-
128-ct. fancy yellow diamond. It was
lated incidents of armed robbery and drunken brawling.

cut from a 287-ct. piece of rough that
was reportedly recovered in 1878 from
At first, supplies had to be brought in by oxcart from Cape Town, a dif-
a Kimberley mine claim.
ficult two-week journey. As a result, even food and everyday grooming

needs were expensive. But the population’s size and vitality soon attracted
34
In the late 1800s, the town of Kimberley consisted mainly of temporary buildings.
Thousands of independent diggers were at work, so diamond buyers’ offices—

usually built with corrugated iron walls—were busy places.
35
Kimberley changed dramatically between the 1870s and the early 1900s. It grew from a jumble of corrugated iron and canvas
shacks to a bustling city, complete with a clock tower.
entrepreneurs to the area. Shopkeepers arrived to supply the town with its
basic needs. Rustic hotels and bars opened up to provide them with food
and drink. On market days, farmers from distant farms brought wagonloads
of produce and livestock to sell. Diamond buyers set up shop in tents or
bought rough directly off the diggers’ sorting tables.
Wood—needed for construction as well as for fuel—was scarce. Public
buildings were constructed out of corrugated iron and canvas. And many
residents burned ox droppings for heating and cooking.
THE FIRST MINERS

A diamond field often contained hundreds of claims, all individually owned.
One or two diggers worked each 30-ft. by 30-ft. (about 9-m by 9-m) claim,
sometimes with the help of hired laborers.
Harry Winston Inc.
The 55-ct. Porter Rhodes diamond was
The diamond-bearing material near the surface was relatively soft and
cut from a 154-ct. piece of rough. It’s
workable. The diggers called it yellowground because of its yellowish

named for the owner of the Kimberley
color. They hoisted it out of the pits and broke it into smaller pieces, then
claim where it was found.
moved it to the sorting tables. After sorting, the yield from all that hard
work often consisted of only a few small rough diamonds.
36
The Jubilee diamond was unearthed

from Jagersfontein—one of the original
Kimberley mines—in 1895. The rough,
which weighed 650.80 cts., yielded a
colorless 245.35-ct. cushion cut.
In 1872, the Kimberley mine was already a dangerous network of deep holes and
narrow pathways.
Early South African diamond
fields contained hundreds of small,
individually owned and operated
claims.
By 1880, there were thousands of individual claims in the Kimberley area. Each
claim had a separate cable system to carry ore to the mine’s rim. This made the
area a perilous snarl of cables and gears.
As the claims deepened and narrowed, the yellowground ran out.

Underneath, miners found blueground, or unoxidized material.
Blueground had a bluish to gray color. It was harder and tougher because
it hadn’t been softened by exposure to air and light. Most diggers assumed
that the diamonds ran out when the yellowground did, and many of them
gave up their claims.
37
This 1882 plan of Kimberley mine ownership shows about 50 individual claims, a sharp decrease from the 3,600 claims that
existed in 1878. The drop occurred after mines became deeper and harder to work. Many individual owners sold out and moved
to other areas. By 1887, most of the claims on this map were under Cecil Rhodes’ control. The figures around the edges show
that security was a constant challenge to mine owners.
For those who decided to go deeper, the greater depths made mining
more complex, and much more dangerous. Rock slides and flooding proved
disastrous. Because of the added depth, miners needed more elaborate
equipment, which meant more expense. Theft and smuggling ate up profits.
To make matters worse, the growing supply of diamonds caused prices to
drop in Amsterdam and Antwerp, then the centers of the cutting industry.
To combat rising mining costs, some of the diggers formed partnerships
and small companies to buy abandoned claims. The purchase of multiple
claims made it possible for diggers to expand their operations over wider
areas. This made it more difficult for solitary claim holders to survive.
Some moved on to areas where they could still work with the shallower
yellowground and use less expensive equipment. Some turned to mining
gold when that precious metal was found in territories farther north in 1885.
38
His Vision Gave Birth to an Industry

Cecil John Rhodes left his native England in 1870 to join his older
brother in South Africa. He was just 17 years old. The brothers caught
diamond fever and headed for the area that later became known as
Kimberley.
While the brothers worked their claim, Rhodes added to his income
by selling water to the thirsty diggers. By age 19, he was financially
independent, and a dominant presence in the diamond fields.
For the next eight years, he divided his time between South
Africa and England. In England, he earned a degree at Oxford
University. Meanwhile, his South African businesses prospered. By
1888, he owned all of the diamond mines in the Kimberley area. He
established De Beers Consolidated Mines Ltd. to control them.
To Rhodes, diamonds meant power. He had visions of an African
continent united under British rule. Rhodes pursued his dream
through politics as well as commerce. In 1881, at age 28, he was
elected to the Cape Colony parliament. He became prime minister
in 1890.
After resigning his government post in 1896, Rhodes continued to
promote his dream of a pan-African empire under British rule. That
vision inspired his efforts to span the continent with telegraph and rail-
way lines. And he remained an influential figure in African politics.
Cecil Rhodes was a dominant force in
the diamond industry almost from the
Austere and aloof, he was addressed as “Mr. Rhodes” even by

day he arrived on South African soil in
friends. He died in 1902, at age 48. He was entombed on a hilltop in

1870. His influence lasted long after his
Rhodesia—a territory of southern Africa named after him and since

death in 1902.
renamed Zimbabwe. His body lies in a teak casket under a stone

slab with an inscribed brass plate in a cavity chiseled out of solid
granite. He left most of his fortune to Oxford University to fund the
scholarships that still bear his name.
CECIL RHODES TAKES CONTROL

British citizen Cecil Rhodes arrived in South Africa in 1870, just as the
first diamonds were discovered. From that day forward, he was an enthu-
siastic participant in the ever-growing diamond industry. He studied its
Cecil Rhodes wanted to stabilize
operation and gradually developed the idea that he could stabilize diamond
diamond prices, so he started by
prices by balancing supply and demand. The first step, he decided, was to trying to control production.
control production.
Rhodes gathered financial partners and bought as many claims as he
could. By 1887, his company held all the claims in the De Beers mine.
Rhodes then turned his attention to the Kimberley Mine.
Meanwhile, Kimberley entrepreneur Barney Barnato had been buying
up claims for his own company, Kimberley Central. In 1887, he was a
39
dominant shareholder in the Kimberley Mine. Another enterprise, the

French Company, was also a significant shareholder. When Rhodes made
an offer for the French Company, Barnato sensed a takeover attempt and
tried to outbid him.
Rhodes and his partners convinced Barnato to let them take over the
French Company. But they didn’t stop there. To add to their Kimberley
holdings, they started to buy all the Kimberley Central shares not yet held
by Barnato.
To maintain his dominant position, Barnato had to compete with
Rhodes and his partners for those same Kimberley shares. The competi-
tion caused the price of shares to skyrocket. Meanwhile, the mines were
producing more diamonds than the market could absorb. As production
increased and prices fell, share prices continued to rise. Finally, after a
few weeks of near-ruinous competition, Rhodes was in control with 60
percent of the stock.
On March 13, 1888, Rhodes incorporated his new company. He
called it De Beers Consolidated Mines Ltd., named after the owners of
a farm where one of the first diamond rushes took place. His company
At first, Barney Barnato was Cecil
Rhodes’ main competitor in the dia-
owned the De Beers mine, 75 percent of the Kimberley, and a controlling
mond trade. When Rhodes bought him
interest in two other local mines—the Bultfontein and the Dutoitspan.

out, Barnato became a partner in
The company’s first-year profits were over £300,000. At the time, this
Rhodes’ new company, De Beers
equaled US$1.5 million. It was a very promising start for the new
Consolidated Mines Ltd.
company.
By 1900, De Beers controlled an estimated 90 percent of the world’s
production of rough diamonds. With what amounted to a production
monopoly, Rhodes had reached his goal of controlling prices by control-
Cecil Rhodes established De Beers
ling the supply.
Consolidated Mines Ltd. in 1888 to
Rhodes, of course, took charge of the operation. Barnato served on the
direct mining operations.
board while tending to his other interests, including gold mining and
banking, until his death in 1897.
THE DIAMOND MARKET’S GROWTH

■ How did De Beers gain influence over the diamond market?
■ How did De Beers maintain its operations during the Depression
and World War II?
■ How did the concept of single-channel marketing contribute to
De Beers’ growth?
■ What kind of ownership arrangements did De Beers make with
major mines worldwide?
London Diamond Syndicate—A Shortly after Cecil Rhodes formed De Beers, the company contracted
group of diamond merchants that with a group of prominent London diamond merchants. The organization
united in 1890 to buy and sell was known as the London Diamond Syndicate, or simply the Syndicate.
rough diamonds. The Syndicate contracted to buy and sell all of the output of the major
diamond producers, including De Beers. Working together, De Beers and
the Syndicate matched diamond production to consumer demand.
40
SIERRA
LEONE
CONGO
(Belgian Congo/Zaire)
TANZANIA
ANGOLA
ZAMBIA
(N. Rhodesia)
NAMIBIA ZIMBABWE
(German (Rhodesia)
SW Africa)
BOTSWANA
SOUTH
AFRICA
Peter Johnston/GIA
By the late twentieth century, diamond mining in Africa had spread from South Africa to locations
throughout the continent.
GAINING MARKET CONTROL

Even with the Syndicate’s help, De Beers was only partially successful in
its attempts to maintain prices by controlling production. This was because
of the establishment of major independent mines, owned and operated by
German companies. The first was the Premier Mine, established in 1903.
Then in 1908, rich alluvial deposits were discovered in what was then the
German colony of South West Africa (now Namibia).
But it wasn’t only independent mines that caused trouble for De Beers.
In 1907, the jewelry industry was hit by a worldwide recession. Demand
for diamonds all but disappeared, so the Syndicate had a large diamond
supply it couldn’t sell. De Beers cut back production, but because the
Premier Mine and the new German mining companies were not part of the
Syndicate, they kept on producing. Prices continued to fall.
41
When it couldn’t own every mine,
De Beers began buying rough from
other producers to safeguard diamond
prices and ensure market stability.
German holdings in South West Africa were so rich in diamonds that there was no
need to dig. In this 1908 photo, African laborers and German officials are searching
for diamonds by crawling on their hands and knees.
In 1926, diamond-bearing alluvial deposits were discovered in Lichtenburg, in the

western Transvaal. A starting flag signaled the beginning of a rush for thousands of
individual claims.
42
Diamond fields were unearthed in the Belgian Congo in the 1920s, adding to the
world’s growing supply of diamonds.
In the 1920s, prospectors unearthed new alluvial deposits in

Lichtenburg (in the western Transvaal) and Namaqualand (near the coast,
south of the Orange River). After that, more diamond deposits were found
in Angola, the Belgian Congo (later renamed Zaire, then Congo), and
elsewhere in Africa. Some were mined by the independents who discov-
ered them, and some by the local governments. When the governments
got into the diamond-production business, another challenge was added to
De Beers’ attempts at central control.
It became impossible for De Beers to own every existing mine, so the
company shifted emphasis, buying rough wherever it was produced. The
company felt that these activities were necessary to safeguard diamond
prices and ensure market stability. By 1929, the company was buying huge
quantities of rough diamond from mines in Angola, Zaire, Lichtenburg,
and Namaqualand.
THE GREAT DEPRESSION

Ernest Oppenheimer assumed the De Beers chairmanship in 1929, just as
financial disaster struck the world and the diamond industry. The US stock
John Van Couvering
market crashed and the Great Depression began. It lasted for almost 10 years.
Demand for diamonds dropped to
During that time, demand for diamonds dropped to practically nothing.

almost nothing during the Great
Many small mining companies went out of business, and De Beers used its
Depression of the 1930s, and many
mining operations closed down. By the
strained resources to buy them. Gradually, the company gained control of
time the industry recovered, the drifting
all South African production that wasn’t controlled by the government.

sands had reclaimed abandoned mining
towns like this one in the Namib Desert.
43
Ruler of a Modern Diamond Empire

Ernest Oppenheimer was born
near Frankfurt, Germany in
1880, the son of a cigar
merchant. He was short in
stature, slender, and shy, with a
first-class mind for business. He
started work at age 16 in the dia-
mond firm of A. Dunkelsbuhler,
a member of the London
Diamond Syndicate.
In 1902, Oppenheimer’s
employers sent him to South
Africa to oversee their buying
office. He became a South
African citizen, was elected to
the Kimberley City Council in
1908, and became Kimberley’s
mayor in 1912. He also served
in the South African parliament
from 1924 to 1938.
Oppenheimer was an outspo-
ken advocate of mining interests
and better job opportunities for
African workers.
Sir Ernest Oppenheimer was chairman In 1917, with backing from
an international group of
of the De Beers board of directors
financiers that included

from 1929 until his death in 1957.
some American bankers,

Oppenheimer founded the Anglo American Corporation (AAC).
The AAC was a major player in the gold-mining industry, but
Oppenheimer also kept his eye on the diamond business. “From the
very start,” he wrote to his American associates, “I expressed the
hope that, besides gold, we might create, step by step, a leading
position in the diamond world.”
In 1930, Oppenheimer created the Diamond Corporation (Dicorp) to

succeed the London Diamond Syndicate, which he’d restructured in 1924.
Dicorp’s purpose was to buy and market rough from its producer-
members, as well as from outside producers and the Union of South Africa.
Diamond demand was still extremely low in 1932, so Oppenheimer shut
down the De Beers mines.
In 1934, Dicorp and other major diamond producers joined together
to form the Diamond Producers Association (DPA). Each producer
44
The discovery of diamonds in German-controlled South West Africa

(now Namibia) gave Oppenheimer the opportunity he was looking for.
When World War I broke out, the South African government seized the
German holdings. The war ended in 1918 and, with the South African
government’s approval, Oppenheimer bought the confiscated properties.
To oversee his new holdings, he formed Consolidated Diamond
Mines (CDM) of South West Africa. CDM also developed new
diamond discoveries in Angola and the Belgian Congo. In a short
time, CDM became De Beers’ most serious rival.
In 1924, the AAC—which had become a major shareholder in both
CDM and De Beers—was admitted to the London Diamond Syndicate,
and Oppenheimer gained a dominant voice in the diamond trade. The
same year, the Syndicate’s contracts with diamond producers expired.
The Syndicate and the producers couldn’t agree on new terms, so
Oppenheimer stepped in. He formed a new Syndicate, which took over
the stock and obligations of the old one.
The original group had been composed of brokers and financiers.
The new Syndicate more closely reflected diamond producers’ inter-
ests. The reorganization made it easier to absorb newly discovered
sources and to protect the industry during periods of reduced demand.
In 1926, Oppenheimer was elected to the De Beers board of direc-
tors. By 1929, at age 49, he was its chairman. He remained in control
of both De Beers and the AAC until his death in 1957. The AAC
remains an important global mineral mining company. CDM func-
tioned as a diamond producer until 1994, when it was restructured as
Namdeb, a company shared equally between De Beers and the
Namibian government.
Through it all, Oppenheimer’s financial empire continued to
expand. By the end of his life, Sir Ernest (he had been knighted by
the British crown in 1921 for his services during World War I)
controlled 34 major companies. Before his death, he attained Cecil
Rhodes’ initial goal: the consolidation of the production and sale of
diamonds.
agreed to provide a percentage of total production. All members marketed

their stones through a sister company of Dicorp called the Diamond Trading
Company Limited (DTC). Dicorp, the rough diamond buyer, and the DTC,
the rough diamond seller, were combined to establish the CSO. Under
Oppenheimer’s guidance, these organizations supported the single-channel
marketing of rough diamonds. The DPA disbanded in 1987.
The diamond industry felt the aftereffects of the Great Depression for
several years. Even with its mines closed, De Beers still had $56 million in
45
The Central Selling Organisation was established in 1934. For decades, its London
headquarters dominated the wholesale diamond trade.
unsold diamonds in 1935, and world sales were stuck at only $15 million
per year. Sales soon started to rise again, but De Beers kept the mines
closed until 1944. The backlog was still so large that it took until 1952 to
sell off the stockpiled diamonds.
WORLD WAR II
De Beers was the world’s major supplier of industrial diamond supplies
when World War II began in 1940. During the war, manufacturers of
military equipment pushed the demand for industrial-grade rough to new
Military needs during World War II
heights. After the war, demand remained high, and Oppenheimer formed
heightened demand for industrial
diamond rough. De Beers Industrial Diamond Division (Debid) to handle that demand.
He also established the Diamond Research Laboratory to develop new
industrial applications for diamond.
As the world recovered from the war, the market for gem-quality
diamonds began to revive as well. The United States became increasingly
affluent. Later, so did Europe and Japan. Even with periodic economic
recessions, worldwide diamond sales increased steadily.
SINGLE-CHANNEL MARKETING
The system of supply and price control that became known as single-
channel marketing proved essential to De Beers’ development and to the
growth of the international diamond trade. It was based on a simple concept
with a structure unlike anything else in the business world. The majority of
rough diamonds from mines worldwide were handled by a single agency—
the CSO. (This changed with the restructuring of De Beers in 2001. You’ll
learn about this and other market changes in the next assignment.)
46
Leona Wood
De Beers promoted diamond jewelry with major worldwide advertising campaigns. This July 1955
magazine ad featured the company’s familiar slogan.
For almost 67 years, the CSO was the rough diamond sales arm of De
Beers. Its main divisions were Dicorp, which purchased diamonds; CSO
Valuations AG, which sorted and valued the diamonds; and the DTC,
which sold the diamonds.
47
The Premier in South Africa started as an independent mine in 1903, but it even-
tually came under De Beers’ direction. Its gigantic pipe spans almost 80 acres at
its surface.
Throughout its long history, De Beers developed and strengthened its

marketing strategy. These were its main elements:
• Strong global advertising, supported by an annual budget that has
reached as high as US$200 million per year
• A diamond stockpile, maintained and released selectively to balance
supply and demand
• A worldwide network of outside buying offices
• Quota provisions in the contracts with its CSO partners that allowed
equal sharing of oversupply challenges
• Control over distribution through a strong client network
Two organizations were created to assist the company in its marketing
efforts: the Diamond Information Center (DIC) and the Diamond
Promotion Service (DPS). The DIC was designed as a public relations
service. It supported De Beers promotional campaigns by providing infor-
mation about diamonds and diamond jewelry to the public through the
media. The DPS supported the diamond industry with promotional activ-
ities, point-of-sale materials, and training programs.
48
Workers at the Botswana Diamond Valuing Company sort diamond rough. The part-
nership between De Beers and the government of Botswana is called Debswana.
During its formative years, De Beers owned some of the largest mines
in the world, and had partial ownership in others. Its own production made
up a significant percentage of the world’s gem-quality diamond produc-
De Beers had full or partial
tion. This made control of diamond supply easier than it is today, when
ownership of many mines, and
mine ownership is in the hands of many more companies. De Beers also bought rough from others through
invested in diverse industries outside the diamond trade to provide capital purchasing contracts.
to maintain diamond prices during recessions and times of low demand.
Some of its diamond buying was done through straightforward
purchasing contracts. One such contract was with Russian diamond
producers. As part of their agreement, the Russians committed a percentage
of their output to the CSO, but also retained a percentage for their own
marketing and production purposes.
Sometimes, De Beers entered into formal partnerships with other pro-
ducers, including government agencies. One of these partnerships was
with the government of Botswana. It was called Debswana, and it still
exists today. De Beers and the government share operating expenses and
profits. Another partnership, called Namdeb, operates coastal diamond
mines in Namibia.
49
Theft, Smuggling, and Illicit Diamond Buying

Diamonds are small, valuable, and easy to hide. As
a result, illegal mining, theft, and smuggling are
inevitable, and have been since the first diamonds
were unearthed.
Illicit diamond buying, or IDB, added a new
dimension to simple theft by creating a legitimate
outlet for stolen diamonds. Workers within the
mines sometimes stole diamonds on their own, but
they usually smuggled them to an outsider who
paid them in cash or gold. Because the outsider
paid such a small percentage of the diamonds’
actual worth, he made a big profit when he sold
them again—this time to a licensed diamond
buyer. Whether the diamonds came from the
worker or an intermediary, they ended up in the
hands of a licensed diamond buyer.
Buyers were licensed through formal arrange-
ments with the mining companies. Some of the buyers involved in
IDB were blatantly dishonest, but some simply paid cash without
A teenage diamond smuggler and his
asking where the diamonds came from. Because of their official sta-
younger brothers stand on the banks of
a river on the border between Angola
tus, their possession of the stolen property made it legitimate as long
and Namibia. If they can get their
as no one guessed its original source. The licensed buyers profited

diamonds to a licensed buyer, the
most from the arrangement. They sold their diamonds at close-to-

diamonds will become part of the
legitimate market.
market rates and profited from others’ dishonesty.
IDB’s threat was not so much from the loss of stones, but from
the flood of lower-priced diamonds. Even by the time stolen dia-
monds reached the legitimate market, their prices were lower than
the legally mined and traded rough. As a result, they threatened the
price stability of legitimately traded diamonds.
To combat IDB, early diamond officials passed laws demanding
severe and immediate punishment for anyone engaging in the
practice. But the laws weren’t enough to stop the flow entirely, so
diamond dealers and cutting firms, as well as the CSO, set up their
own buying offices. They felt it was better to pay competitive prices
for illicit diamonds and to take them out of circulation than to lose
them and, at the same time, face competition from the cheaper
diamond prices in the IDB market.
The CSO maintained satellite buying offices in Antwerp, Tel Aviv, and
throughout Africa. They were especially important in areas where alluvial
mining was done largely by individual diggers. With so many independents,
it was difficult to buy on a large-scale contract basis and almost impossible
to control distribution.
50
Natural light was traditionally used for carefully inspecting and evaluating rough diamonds.
HISTORY OF ROUGH DIAMOND DISTRIBUTION

■ What route did diamonds take from the mine to the wholesaler?
■ How did the CSO’s wholesale system operate?
■ How did political changes affect the modern diamond industry?
Once most rough diamonds were unearthed, they followed a preset path,
known as the diamond pipeline. The CSO bought rough from diamond
Diamond pipeline—The path
producers all over the world. Purchasing negotiations and sales took
diamonds followed from the
mine to the consumer.
place in the producing countries, where each company showed carefully
selected samples to CSO representatives. The samples reflected the
overall value of the producer’s output so both parties could agree on an
accurate, fair price.
Much of the diamond pipeline still functions in the same way, but as you’ll
learn in the next assignment, the industry experienced dynamic changes in
the twenty-first century. Understanding the pipeline’s history and the philo-
sophy behind it will help you understand the new directions it’s taking.
SORTING ROUGH
After gathering the rough it mined or purchased, De Beers sorted it into
14,000 different categories, based on various combinations of size, shape,
clarity, and color. Today, the number of categories is closer to 16,000, but
Rough is sorted into categories
the basic process is the same. Some of the sorting factors are similar to based on size, shape, clarity, and
those for grading polished stones, but there are some differences. color.
51
India is one of the industry’s cutting centers for smaller diamonds. Modern, semi-automated diamond cutting
replaced manual operations in the late 1980s.
Unless the inclusions are very large, for example, clarity factors are
more difficult to detect in rough than in polished goods. Color is tricky,
too. Often, the color is concentrated on the surface of the crystal or in
areas that might be lost or reduced in cutting.
Diamond sorters follow some standards that are unique to rough.
Shape is one of them. Two rough diamonds might be the same color and
clarity and equal in weight. Yet one might be worth much more than the
other because of its shape. That’s because some shapes yield more
valuable finished diamonds than others. You’ll learn more about this in
Assignments 7 and 9.
Thomas Hunn
Because of diamond’s extreme hard-
Industrial diamonds have their own market segment. Some applica-

ness, industrial diamonds often end up
tions require whole single crystals, but the largest volume consumed is
on drilling tools like this dentist’s burr.
abrasive grit. Most industrial diamond grit is processed and sold by

Debid, but some clients purchase a few higher-quality single crystals for
specific industrial uses. (A great majority of the industrial diamond in
current use is laboratory-grown diamond, which you will learn about in
Assignment 19.)
Gem-quality rough followed a different route after it was sorted. Some
of it went into the CSO stockpile. The rest followed the pipeline to the
industry’s cutting centers: Antwerp, Belgium; Tel Aviv, Israel; New York,
US; Mumbai, India; Bangkok, Thailand; and others.
52
SIGHTS AND SIGHTHOLDERS Sight—Trading event where

The CSO’s system of selling gem-quality rough to dealers and manufac-
selected clients buy rough
turers has a long history. Starting in 1939, De Beers set up trading events
diamonds.
called sights for the purpose of selling gem-quality rough to selected deal-
ers and manufacturers. Each sight lasted a week, and there were 10 each
Sightholder—A diamond manu-
year. The major sights took place in London, and smaller ones in Lucerne
facturer or dealer invited by De
and Johannesburg.
Beers to buy rough diamonds.
Attendance was by invitation only, and those invited were called

sightholders. Sightholders were appointed by De Beers. There have been
as many as 300 and as few as 120 sightholders worldwide. Most were
major manufacturers, but some were sightholding dealers who resold
rough to smaller companies.
Several independent brokerage firms acted as agents between sighthold-
ers and the CSO. Brokers kept their clients informed about CSO policies,
which changed from time to time to reflect market conditions. Brokers also
passed along their sightholders’ requests for a given quantity and type of
diamond rough. The brokers’ commissions were based on their clients’
purchases.
Diamond brokerage firms also recommended potential sightholders to
the CSO, which investigated all candidates. A sightholder’s required qual-
ifications included an excellent reputation in the industry, the financial
strength to make large purchase commitments, and reliable distribution
outlets for polished goods. Some sightholder candidates were rejected
The CSO provided sightholders with private showing rooms. Each one was equipped with a worktable, a
lamp, a scale, and a phone.
53
outright; some who showed potential were advised on ways to improve

The Single-Channel their operations. Candidates who served new or underserviced markets
Diamond Market were more likely to be accepted than those from already well-represented
De Beers Mines areas.
Once accepted, sightholders were rarely dropped, unless their activities

Ownerships and
went against the industry’s best interests. During the so-called “diamond
Partnerships
investment boom” of the late 1970s, demand for rough of any quality was
Independent Open-Market
extremely high. This was especially true of high-quality diamonds. Some

Purchases
Producers Individual Sellers
sightholders took advantage of the situation. They immediately resold their

sight selections at higher prices than De Beers had been asking for the same
goods. This was a violation of the sightholders’ agreements with De Beers.
The CSO dropped many clients who resold sights in this way.
About three weeks before a sight, sightholders consulted with their

De Beers
brokers and applied for a quantity and assortment of goods that met their
Central Selling
Organisation
needs. CSO personnel reviewed all requests and put together a selection
Sorting and Sales
for each sightholder. Sightholders viewed their selections in private show-

ing rooms. Each room was equipped with a worktable, a lamp, a scale,
Sightholders
Manufacturers and Dealers
and a phone.
The CSO tailored each parcel to a sightholder’s expressed needs as

closely as possible, so sightholders rarely rejected a parcel. Minor
Jewelry Manufacturers
negotiations sometimes took place if a sightholder felt a selection didn’t
contain the requested mix of diamonds.
Retail Jewelers
and Consumers
Even after sightholders accepted their sights, they remained in the pos-
session of the CSO. Sightholders paid for them, in full, within seven days.
After that, the stones were sent directly to them by airmail or courier, in a
The operation of the single-channel
diamond market was simple. Diamonds
prepackaged parcel called a sight box.
from mines all over the world were
sorted and sold through a single
A secondary market for rough also existed. Many small-scale manu-

agency: the CSO. This has changed in
facturers bought from sightholding dealers, who were allowed to resell

recent years, with the appearance of
their rough. Dealers’ boxes contained a wider variety of diamonds than

independent mines and countries with
their own diamond-marketing systems.
the boxes sold to manufacturers. This allowed the dealers to re-sort the
diamonds into smaller, more customized lots for their clients.
Rough diamonds over 10.80 cts. were not usually included in sights.
De Beers offered these stones separately, and called them specials. There
Special—A rough diamond over
10.80 cts., sold separately to a
sightholder who specializes in was a bottom limit on the prices of specials, but otherwise they were the
larger stones. only items open to price negotiation, and clients were free to accept or
reject them.
Only about half of the company’s sightholders were interested in—or

even capable of handling—such large stones. It’s generally accepted that
the name arose out of the general practice of sorting diamonds of 10 carats
At a sight, the CSO presented a
and below in the usual way, while 11-ct. sizes and above got special treat-
customized selection of diamonds
to each sightholder for acceptance. ment because of their rarity. Because the carat-weight spread for an 11-ct.
stone begins at 10.80 to 10.81, they settled on the 10.80-ct. minimum to
define specials.
54
The large diamond in this mixed parcel of rough is called a special because it weighs more than 10.80
cts. De Beers sells specials separately to its interested sightholders.
THE CHANGING DIAMOND MARKET

By the 1990s, diamond mining had expanded worldwide. Twentieth
century discoveries of rich deposits in Russia, Australia, and Canada began
to dilute southern Africa’s role as the world’s main supplier of rough
diamonds. Political changes also affected De Beers’ role in the market.
Single-channel marketing is experiencing many changes in the twenty-
first century. Some diamond-producing countries are developing their own
export markets and their own internal cutting industries. The growing
The early twenty-first century brought
global economy has created some dynamic changes of its own. In the dynamic changes to the global dia-
next assignment, you’ll learn about how these influences are affecting the mond market.
diamond market as it moves into the future.
55
Abundant South African diamond sources appeared in the late Military needs during World War II heightened demand for
1800s, just as diamond demand broadened. industrial diamond rough.
The diamond rush began with the discovery of the Star of De Beers had full or partial ownership of many mines, and
South Africa in 1869. bought rough from others through purchasing contracts.
Early South African diamond fields contained hundreds of Rough is sorted into categories based on size, shape, clarity,
small, individually owned and operated claims. and color.
Cecil Rhodes wanted to stabilize diamond prices, so he At a sight, the CSO presented a customized selection of
started by trying to control production. diamonds to each sightholder for acceptance.
Cecil Rhodes established De Beers Consolidated Mines Ltd. The early twenty-first century brought dynamic changes to the
in 1888 to direct mining operations. global diamond market.
When it couldn’t own every mine, De Beers began buying

rough from other producers to safeguard diamond prices and
ensure market stability.
Key Terms
Central Selling Organisation (CSO)—An agency Sight—Trading event where selected clients buy
designed to purchase, sort, evaluate, and sell rough rough diamonds.
diamonds.
Sightholder—A diamond manufacturer or dealer
Digger—An independent diamond prospector. invited by De Beers to buy rough diamonds.
Dry diggings—A prospector’s term for diamond Single-channel marketing—A direct, centrally
deposits away from water. controlled marketing route for rough diamonds.
London Diamond Syndicate—A group of diamond Special—A rough diamond over 10.80 cts., sold
merchants that united in 1890 to buy and sell rough separately to a sightholder who specializes in
diamonds. larger stones.
Diamond pipeline—The path diamonds followed

from the mine to the consumer.
56
The Modern Diamond Market 3
Birth of the Multi-Channel Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Independent Diamond Producers . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
De Beers in the New Century . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
De Beers as Private Enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
The CSO Becomes the DTC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
De Beers as Luxury Retailer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
De Beers as Corporate Citizen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
De Beers Moves Forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
The Rise of the Fourth C—Cut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Cutting Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
Other Cutting Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
The Twenty-First Century Diamond Market . . . . . . . . . . . . . . . . . . . . . 84
Electronic Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Asia’s Impact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Diamonds and the Modern Economy . . . . . . . . . . . . . . . . . . . . . . . . 88
Key Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Key Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
57
• Understand how the diamond market evolved from single-channel to multi-

channel.
• Explain the roles of major diamond-mining countries in the industry’s evolution.
• Describe how De Beers changed its business plan as the industry evolved.
• Understand the factors that led to the rising importance of cut grades.
• Identify the locations of major diamond cutting centers.
58
THE MODERN DIAMOND MARKET
Andy Lucas/GIA
At one time, it would have been easy to assume that this rough diamond was marketed through De Beers.
Now there are multiple routes for diamond rough to take on its way to being fashioned for the market.

According to American legend, Rip Van Winkle fell asleep before the
American Revolution and awoke 20 years later believing he was still a
subject of England’s King George. Mr. Van Winkle would have been no
less shocked if he’d fallen asleep before the end of the Cold War and woke
up 20 years later. He’d have been especially shocked if he’d been in the
diamond trade prior to his big snooze.
What has occurred in the diamond industry over the past two decades
is nothing short of a revolution. The long reign of De Beers over its rough
diamond kingdom gave way to such a wave of independence and diversi-
fication that even those who were awake through it all had to rub their
eyes in disbelief.
The widespread and fundamental transition of the diamond industry
reflected broader global trends. These included the emergence of India
and China as economic powers; the assertion of national sovereignty by
Third World countries, especially in Africa; the advance of technology;
and the threat of international terrorism.
In this assignment, you’ll learn about the enormous impact of these and
other changes as they continue to reshape the face of the diamond industry.
59
The CSO controlled diamond prices by
buying and holding supplies until
demand increased.
The CSO once sorted and controlled the vast majority of the world’s rough diamonds.
Today, the diamond market is dealing with a new multi-channel reality.
BIRTH OF THE MULTI-CHANNEL MARKET

■ What led to the collapse of the single-channel rough diamond
market?
■ What countries play ongoing roles in the rough diamond market?
■ How did diamond-mining countries gain control over their own
natural resources?
After decades of being defined by De Beers’ single channel, the diamond

market entered the twenty-first century reconfigured as distinctly multi-
channel. Up to the mid-1990s, De Beers’ trading arm, the Central Selling
Organisation (CSO), was the nucleus of the world diamond industry. Backed
by De Beers’ financial muscle, the CSO controlled the flow of diamonds by
buying and holding them until demand for them rose along with their prices.
60
single channel pipeline

sightholders
owned mines
contracts
open market
multi-channel pipeline
mines in Russia
Argyle
Andy Lucas/GIA
The diamond market is becoming more
mines in Canada
and more diverse. This scoop of rough
Ekati, Diavik
from a Canadian mine is being inspected
at a company in India.
mines in
South Africa
Botswana
production
from Angola,
Dem. Rep. of the Congo,
Namibia offshore
Peter Johnston/GIA
Where once there was a single channel—De Beers—the modern multi-channel

market for diamond rough consists of many different pipelines.
However, when important diamond producers in Russia, Australia, and

Canada sought more control over their own mineral resources, negotia-
tions over trade contracts became more complex and costly for De Beers.
The situation was complicated even more by an overall increase in dia-
mond production, which limited the CSO’s ability to control supply and
demand. The multi-channel rough diamond market that emerged consisted
primarily of Russia, private mining companies in Australia and Canada,
and a few independent diamond-trading companies.
The multi-channel rough diamond market has become a fact of life in
the diamond industry. This assignment will examine what each of the new
channels looks like and what measures De Beers has taken to adjust to this
new reality.
61
RUSSIA
The disintegration of the single channel coincided with the breakup of the
Soviet Union. Its effect on the diamond industry was as dramatic as the
Diamond Mining
effect of the Soviet collapse on global politics.

A chief characteristic of the Russian diamond industry was its vertical
integration. It’s a term that describes involvement of a business or indus-
Sorting and Valuation
try in all aspects of its product’s market. In the diamond industry, this
of Rough
includes mining, sorting, cutting, jewelry manufacturing, distribution,

marketing, and sales. Vertical integration in the diamond industry increases
profits because there’s much more value in a finished piece of diamond
Cutting and Polishing
jewelry than in a rough diamond crystal.
Small Russian diamond-cutting workshops dated from the late 1600s.
Jewelry Manufacturing When rich diamond deposits were uncovered in Siberia’s Mir mine in the
mid-1950s, Russia’s cutting and polishing industry expanded to interna-
tional prominence. Russian cutters emphasized quality, and Russian-cut
diamonds gained a reputation for excellence.
During the 1970s and 1980s, Soviet opposition to the South African
Marketing and Retailing
racial-separation policy of apartheid caused them to deal with De Beers

only through intermediaries. As the Soviet system began to crumble in the
In a vertically integrated market, the 1980s, De Beers was in a good position to benefit from the totalitarian
regime’s desire to modernize.
same company that mines diamonds
The CSO made a billion dollar loan to Moscow, accepting a large por-
also sorts rough, fashions diamonds,
tion of the Soviet diamond stockpile as collateral. The two parties signed
mounts them in jewelry, and markets
them directly to consumers.
a five-year agreement in 1990. It sustained De Beers’ exclusive marketing

rights to all of that country’s future diamond production. Also in the
1990s, De Beers officially recognized the skills of Russian cutters and
made a Russian firm one of its sightholders.
A finished piece of diamond jewelry
has much greater value than a rough
diamond crystal.
Vertical integration—Involvement
of a business or industry in all
aspects of its product’s market.
Reuters NewMedia Inc./Corbis
Some of Russia’s rough diamonds are impressively large and high in quality.
62
Reuters NewMedia Inc./Corbis
The opening of the Mir mine in Siberia’s western Yakutia region in the mid 1950s
led to the Soviet Union’s importance in the diamond market.
But as would happen elsewhere in the world during this tumultuous

period, nationalist sentiment could not be ignored. The Russian federation
that emerged from the ashes of the Soviet Union placed its diamond
operation under the authority of Alrosa—a joint venture of the central
Russian government and Sakha, a semi-autonomous republic and primary
producer of diamonds.
A subsidiary of Alrosa—Brillianty Alrosa—was established to foster
the development and success of a domestic diamond polishing industry.
Under this policy, the Russians established 90 diamond-polishing facto-
ries by the early 2000s.
By exploiting a series of loopholes in its original contract with De Beers,
the Russians had seriously undermined the CSO’s ability to control diamond In 2005 the European Commission
supply. Those loopholes let the Russians draw upon huge stockpiles of what
accused De Beers and Alrosa of work-
they claimed were industrial diamonds. This bypassed the CSO and flooded
ing together to fix diamond prices. After
the market, thus depressing prices. In 2001, after negotiations over a series
a series of appeals, a court decision
of contracts, De Beers and the Russians reached a new five-year agreement.

seemed to favor the partners, who
controlled about 60 percent of the
By 2005, the European Union (EU) had accused the Russians and De
world’s diamond rough at the time.
Beers of collusion to control diamond prices. A court decision in late 2007

seemed to favor Alrosa and De Beers, but one thing was now clear in the
new diamond market: certainty would be rare.
During the world economic crisis of 2009, while De Beers and other
mining companies curtailed production to adjust to reduced demand,
Alrosa kept mining. This made Alrosa the world’s largest diamond pro-
ducer by volume, surpassing even De Beers. However, instead of selling
its excess stones into the market, the company developed a system that
involved selling a percentage to the government stockpile, Gokhran, for
release when world diamond demand improved.
63
AUSTRALIA
While the failure of communism helped reset De Beers’ relationship with
Russian diamond producers, marketing genius changed the dynamic
between De Beers and Australian suppliers. By the late 1980s, Australia’s
Argyle mine had become one of the world’s largest producers by volume
of rough diamond.
At first, Argyle joined the CSO single-channel marketing system and
sold 75 percent of its output to the CSO. The CSO was able to carefully
control the release of these rough diamonds into the market and to estab-
lish a secure supply for the cutting industry in India.
There were, however, strains on the relationship between Argyle and
De Beers. One source of the strain was De Beers’ requirement that Argyle
first sell its signature rare pink diamonds to the CSO and then buy them
back in order to sell them to its own clients. Many of those clients were
Australian jewelers who received finished goods from Argyle’s own cut-
ting and polishing operations.
Robert Weldon/GIA
Although much of Argyle’s production is small, brownish, and

inexpensive (right), a tiny percentage consists of rare red and
pink gems that sell for extremely high prices (left).
64
Lamberti/Stone/Getty Images
Most of Australia’s production consists of small brownish diamonds, used mostly in

industry. The Australians created a jewelry market for them by giving them names
like “cognac” and “champagne.”
The low-wage Indian cutting industry
allowed Argyle’s small, lower-quality
stones to be processed for the
In the 1990s, economic recession in many parts of the world, plus the jewelry market.
large number of small—mostly Russian—diamonds in circulation, forced
De Beers to delay purchase of Argyle’s production. This left Rio Tinto,
Argyle’s London-based ownership group, with stocks of rough contractu-
ally committed to De Beers.
Most of Argyle’s material was suitable for industrial use only, and even
the rough diamonds used in the gem industry were often small, brownish,
and difficult to cut. Many crystals had only small portions that were clear
enough to fashion. They required labor-intensive processing to produce
marketable polished diamonds.
Argyle turned to the low-wage Indian cutting industry to handle its
mass quantity of small, modest-quality stones. This allowed rough that
was once consigned to industrial use to be processed for the jewelry mar-
ket. What Argyle then needed was to create a market for its product.
Since the Australians believed the CSO’s marketing efforts favored
larger stones over smaller ones, they took responsibility for marketing
their own product. They promoted their small brown stones as “cognac”
or “champagne” diamonds. By aggressively promoting inexpensive jew-
elry pieces studded with their tiny gems, they helped broaden the appeal
of diamond jewelry to more consumers. By 1996, relations between
Argyle and the CSO had totally collapsed.
65
Even after Argyle’s departure, De Beers still retained majority control

of the world’s rough diamonds through mines in Africa. However, its dif-
ficult contract negotiations with the Russians and the rift with the
Australians made its position precarious.
The open-pit operation of the Argyle mine that launched the Australian
diamond boom was becoming unworkable by 2005. In addition to
expanding its interests into Canadian mining, Rio Tinto sought to extend
Argyle’s life to 2018 by going underground. The story of Rio Tinto’s
Rio Tinto’s need to raise funds for efforts provides a good example of global business in the twenty-first
century.
converting the Argyle mine to an
First, to convert Argyle to an underground operation Rio Tinto had to

underground operation was complicated
by a takeover attempt from its rival
commit to an investment of more than a billion dollars. Then the owners
BHP Billiton. The two giant companies
had to sign a Participation Agreement, which essentially recognized the

are global conglomerates focused on
indigenous peoples of the area as its landlords. Then, shortly after secur-
natural resources.
ing the future of its Australian interests, Rio Tinto faced a takeover
attempt by its rival, BHP Billiton.
The back and forth of the attempted takeover graphically illustrates the
complications of dealing in the global economy. For one, Rio Tinto had to
pay for its own earlier takeover of the Canadian mining company Alcan.
It also needed funds to protect itself from being taken over by BHP. To
help raise the necessary financing for both, it had to sell off its significant
coal-mining interests in the United States.
CANADA
In 1991, the first Canadian diamond-bearing kimberlite of any signifi-
cance was discovered in that country’s Northwest Territories. The Ekati
mine went into production in 1998. The quality of its diamonds compared
favorably with the best output from South Africa, Botswana, and Russia.
Tiffany & Co. was a part owner of Aber
Resources when it helped finance the
The Australian mining giant BHP Billiton had a controlling interest in
Diavik mine. This secured Tiffany a
the Ekati mine, and in the beginning sold 35 percent of its production to
source of diamond rough. When Aber
De Beers. At the end of the three-year agreement, BHP chose to go its

bought luxury retailer Harry Winston,
own way to market its diamonds.

Tiffany sold its share. Aber then
changed its name to Harry Winston
Another Canadian mine, Diavik, opened in 2003 with Argyle’s owner

Diamond Company.
Rio Tinto as majority shareholder. Rio Tinto’s partner in the Diavik mine
was Canadian company Aber Resources Ltd. Famed retailer Tiffany &
Co. was part owner of Aber. Tiffany’s investment helped finance the mine
and secured a diamond source for the retailer.
In 2010, Aber Resources bought Tiffany rival Harry Winston, prompt-
ing Tiffany to sell its stake. To capitalize on Harry Winston’s prestigious
name in the diamond trade, Aber changed its name to Harry Winston
Diamond Corporation (HWDC). A later sale transferred ownership of
Harry Winston’s retail operation to the Swatch Group, the Swiss watch
and jewelry giant. The Harry Winston name transferred along with the
When the Swatch Group gained
ownership of the Harry Winston retail
sale and HWDC’s mining operation became known as Dominion
segment, the HWDC mining operation
Diamond Corporation.
became known as Dominion Diamond
Corporation.
66
Canada’s Ekati mine (above) went into production in 1998. Its remote location and
climate conditions make access possible only in the winter when the roads are
frozen solid (right).
Today, it seems that Canada’s full potential for diamond production is

yet to be reached. De Beers established two more Canadian diamond mines
in the early years of the twenty-first century. Victor, opened in 2007, is
located in northern Ontario near the Hudson Bay. Snap Lake is in Canada’s
Northwest Territories, fairly close to Ekati and Diavik. It opened in 2008.
Canada, like many other countries, has tried to deal with the issue of
foreign ownership of its natural resources through legislation. The
Canadian government made mining companies commit to involving
Canadian workers in sorting, grading, and polishing the diamonds taken
Eric Welch/GIA
Canadian rough is known for its quality,

out of the country’s ground. size, and clarity. This octahedron ended
up in Surat, India, where expert diamond
cutting at cut-rate prices has been an
attractive lure.
AFRICA
Beneficiation is a mining term that refers to the process of reducing and
separating extracted ore into mineral and waste. In a social context it
means that a portion of the natural resources extracted from a country’s
soil must stay in the country to support its economic growth. Modified
versions of this practice already existed in other places, such as Canada,
but the concept of beneficiation is most closely associated with the dia-
Beneficiation—A commitment to
mond-producing nations of Africa.
reserve a portion of the resources
In South Africa, it led to the policies of Black Economic Empowerment

derived from any country for the
(BEE). One of the results of these policies was a new mining charter that
economic development of that
designates the people of the country as the rightful owners of its mineral
country.
resources, with the government as custodian.
67
Ke y C o n c e p t s BEE policies also require mining operators to set aside a certain percent-
age of rough for local manufacturing and give proprietary standing to local
cutters. South Africa’s State Diamond Trader is specifically charged with
Beneficiation helps countries exercise
purchasing diamond rough for domestic use. Under pressure, De Beers
greater control over their natural
mineral resources. increased the number of sightholders to include black-owned South African
companies that were BEE-compliant.
In Namibia, beneficiation was in effect before it became known by that
term. In 1994 the government and De Beers formed a 50-50 partnership
called Namdeb. As beneficiation became more accepted, Namibia set a
goal of having 90 percent of its diamond production polished domestically.
By 2004-2005, De Beers offered to help Namibia develop local diamond
manufacturing. To support this effort, it opened a branch of its diamond
rough distributorship in Namibia to deal with local manufacturers.
De Beers formed another 50-50 partnership with the government of
Botswana. This one, called Debswana, controls the world’s largest diamond
reserve. The immense production from the joint holdings provides 30 to
40 percent of Botswana’s gross national product. It has helped move the
country up toward middle class status among world economies.
The relationship between De Beers and the government was formalized
in an agreement that made Botswana part owner of De Beers. Nonetheless,
negotiations between the two over a new 25-year license on Botswana’s
major Jwaneng mine were difficult. Difficult negotiations were becoming a
fact of life for De Beers in the new multi-channel universe.
Brendan M. Laurs/GIA
This Namibian diamond cutter is one of many who benefit from beneficiation, the policy of dedicating a
portion of a country’s natural resources for development of local economies.
68
©Jason Lauré
Peter Essick/Aurora and Quanta
In the late 1990s, De Beers and its government partners built this multimillion-dollar
diamond sorting plant at Botswana’s Jwaneng mine (top). An inside view shows
some of Jwaneng’s quality output (bottom).
69
200
GROWTH OF WORLD DIAMOND PRODUCTION
160
Canada
(2000)
140
Australia
(1985)
120
millions of carats
Botswana
100
(1970)
80
Angola Russia
60
(1921) (1960)
40
South Africa Namibia Dem. Rep. of

(1909) the Congo (Zaire)
20
(1870)
(1917)
0
1860 1880 1900 1920 1940 1960 1980 2000 2005 2010
Many diamond sources have emerged since the late 1800s, and annual diamond production has grown from
just a few million carats to well over 100 million. The steady growth was interrupted in 2008 by a worldwide
recession that caused diamond demand to plummet. This resulted in a corresponding reduction in production.
A slow recovery began in late 2010, but production still hasn’t reached pre-recession levels.
INDEPENDENT DIAMOND PRODUCERS

Further complicating the multi-channel diamond market is the existence
of diamond mining companies that operate independently of De Beers
and other producers.
One of those is Dominion Diamond Corp., formerly HWDC. The
company’s primary resources are its 40 percent stake in Diavik and its
ownership of Ekati, which it purchased from BHP Billiton in 2013. The
acquisition made Dominion the world’s largest supplier of Canadian
diamonds.
Gem Diamonds, an African company, owns 70 percent of Letseng
Diamonds in partnership with the Kingdom of Lesotho, which has a 30
percent share. Its mine produces about 100,000 carats per year. However,
among its tons of low-grade ore, the mine boasts a high percentage of
large diamonds over 10 carats.
Letseng is also famed for its production of historic diamonds. The 550-
carat Letseng Star, unearthed in 2011, was the mine’s fourth major recovery
since Gem Diamonds’ 2006 takeover. It was preceded by the 478-carat
Light of Letseng in 2008, the 603-carat Lesotho Promise in 2006, and the
493-carat Letseng Legacy in 2007.
Petra Diamonds of South Africa has purchased a number of older
mines formerly owned by De Beers. These include the Williamson mine
in Tanzania and a 74 percent share in South Africa’s Cullinan mine, once
known as Premier. In 2010, Petra acquired Kimberley Underground,
including three historic mines: Bultfontein, Dutoitspan, and Wesselton. In
that same year, the company’s production rose to over 1 million carats.
70
DE BEERS IN THE NEW CENTURY 1995

20% other
■ What caused De Beers to change its ways of doing business?

■ What specific changes did De Beers make?
■ How has De Beers influenced the international diamond community?
Throughout the 1990s De Beers was quietly reinventing itself to meet the
challenges of the changing rough diamond market. As the new century
began and the challenges mounted, De Beers’ efforts became more vigor-
ous and pronounced.
80% De Beers
$5.5 billion total
The most notable challenge came from the dramatic increase in dia-
monds flowing around the De Beers pipeline instead of through it. External 2012
pressures also played a part. While the US enjoyed unprecedented prosper-
38% De Beers
ity in the 1990s, Asian countries were in recession. Lower demand in those
countries meant lower sales. At the same time, diamond supplies increased,
especially supplies of small, inexpensive stones flowing through India.
Manufacturers kept producing, but fewer consumers had the finances
to absorb their high-end goods. At the same time, retailers used volume
discounting to drive down prices. This led to increases in the number of
consumers, but the demand was for lesser-quality goods. Profit margins
dropped in many segments of the industry.
62% other
$14 billion total
De Beers had once sold as much as 80 percent of all diamond rough. In

the late 1990s, that amount fell to about 65 percent. The opening of mines
Peter Johnston/GIA
outside De Beers’ influence, like those in Australia and Canada, further

A variety of factors caused De Beers’
control of the diamond industry to
diluted its control over supply.
diminish in the 21st century.
De Beers, however, was not about to surrender its primary role in the
diamond industry. By the end of the twentieth century, it still accounted
for about 50 percent of the world’s annual diamond production by value.
To prevent further erosion of its position in the twenty-first century, it
aggressively set about altering its decades-old way of doing business.
DE BEERS AS PRIVATE ENTERPRISE

In early 2001, De Beers chairman Nicholas “Nicky” Oppenheimer
announced he was heading a consortium, named De Beers Investments
(DBI), that would buy all outstanding shares and take the company private.
The consortium was owned by the Oppenheimer family (45 percent), the
Anglo American Corporation (45 percent), and Debswana (10 percent).
The relationship between Anglo American and De Beers was always
complex. Each company owned shares in the other in a structure devised
by Ernest Oppenheimer, Anglo’s founder, to protect his family’s interests.
Jonathan Woodruff/Reuters/Corbis
One main goal of the buyout was to eliminate the mutual holdings. It gave
In 2001 Nicky Oppenheimer announced
the purchase of De Beers for $17.6
Anglo American a stake in De Beers with De Beers no longer holding
billion. The purchasing partners were
Anglo stock.
the Anglo American mining company,
the Oppenheimer family, and Debswana.
71
New diamond supplies combined with
major political and economic events
led De Beers to institute dramatic
changes.
Part of the De Beers makeover was a controversial reevaluation of its sightholder

list. The classic sight box remained even as the list of sightholders went through a
series of changes.
Some analysts speculated that the move was also designed to circum-
vent any legal issues De Beers might face in the US. Others suggested it
allowed De Beers management to pursue controversial initiatives without
stockholder pressure or scrutiny. Whatever the reasons, and despite the
controversies, the plan went through and, in May 2001, De Beers became
a privately owned company.
THE CSO BECOMES THE DTC

Even before its privatization, De Beers was already involved in a serious
corporate makeover. In January 1999, De Beers teamed with a consulting
company to conduct a strategic review of its entire operation. From owner-
ship to customer relations to advertising, everything was about to change.
As a result of the review, De Beers announced in mid-2000 that the CSO
would be renamed the Diamond Trading Company (DTC). At the same time,
the company unveiled a new logo called the Forevermark—a star embedded
in a diamond. It symbolized the slogan “A Diamond is Forever,” and it
became part of the company’s new consumer-level promotional program.
The renaming of the CSO was meant to be more than cosmetic. It repre-
sented a fundamental change in the way De Beers operated. De Beers no
longer positioned itself as the custodian of the industry. And instead of being
The Forevermark, an advertising logo the company with whom sightholders were required to do business, it aimed
to be the company with whom sightholders would choose to do business.
designed to symbolize diamond’s time-
Instead of driving supply, the company’s aim was to drive demand.

less appeal, became a key component of
the DTC’s consumer-level promotions.
72
An important part of this strategy was its Supplier of Choice (SOC)

program, under which De Beers and its sightholders would work together
to market and sell diamonds. For decades, De Beers had provided much of
the industry’s advertising—up to $200 million per year. But the company
recognized that the amount spent on diamond promotion was less than the
amount spent on promotion of other luxury goods—only 1 percent of sales
compared to 10 to 20 percent. So De Beers began requiring its sightholders
to create their own diamond-marketing efforts.
In order to buy diamonds from the DTC, an SOC sightholder had to
demonstrate its ability to sell diamonds and to add value to those dia-
monds in some way. That might mean innovative advertising campaigns
or creative marketing plans. For example, some SOC sightholders might
develop proprietary cuts to promote to retailers. Others might promote
As De Beers sought to resolve a number
their own private-label jewelry lines.

of old complaints through Supplier of
Choice, it raised many new ones. Those
Many factors affected the selection of new sightholders, including their

led to a revised program called Supplier
financial strength, market position, location, marketing strategy, and tech-

of Choice 2.
nical expertise. The DTC put special emphasis on sightholders who

served specialty markets or who were located in previously under-
serviced areas.
In return, sightholders got rough allocations tailored to their needs. Supplier of Choice—Program
This was determined jointly with the DTC and based on sales volume adopted by De Beers in 2001, in
over a six-month period. Sightholders were also entitled to assistance in which it required its sightholders
training, sales planning, client evaluation, account management, trade to help increase market demand
marketing, and advertising. for diamonds.
In an attempt to prevent negative reaction to its SOC initiatives, De Beers
submitted them to the European Commission (EC) for review. It followed
Supplier of Choice 2—Program
through by making the EC’s suggested modifications. Nonetheless, the SOC

adopted by De Beers in 2007 to
program was not wholeheartedly welcomed in the industry.

answer critics and resolve short-
comings of its original SOC
The new SOC sightholder list was two-thirds the size of the previous program.
list. Some significant industry players were dropped, notably some in
Antwerp and Israel. The negative reaction led to formal resolutions and
lawsuits against De Beers.
In 2004, De Beers responded by offering to make $500 million of
rough available to diamond manufacturers outside the SOC program. In
2005, it added 11 new sightholders and, in 2006, announced it would
SOC sightholders had to demonstrate
review the list every six months. The criticism persisted, so in 2007, De
the ability to sell diamonds and to add
Beers announced it would implement a revised SOC program, called value to those diamonds in some way.
Supplier of Choice 2. Reinventing itself would prove to be an evolving
process for De Beers. De Beers’ efforts at reinvention proved
to be an evolving process.
DE BEERS AS LUXURY RETAILER
Another result of the strategic review was that the company decided to
make radically different use of its name. The company removed the De
Beers name from its generic advertising and replaced it with the time-
honored slogan, “A Diamond is Forever,” tied to the Forevermark. De Beers
reserved its name for luxury branding purposes.
73
Jean-Pierre Muller/AFP
The De Beers/LVMH alliance resulted in the creation of De Beers In a bid to retail its own branded diamonds, De Beers partnered
LV. Stores like this one in New York City were designed to expand with luxury goods manufacturer LVMH. LVMH outlets included
the De Beers brand identity to luxury items beyond diamonds. the Louis Vuitton store on the Champs Elysees in Paris.
Brand names in the diamond business were generally associated with

elite retailers like Tiffany and Harry Winston. De Beers sought to change
that by capitalizing on the name recognition it had built up since the 1940s
through extensive advertising. Its goal was to make a De Beers branded
Independent Producers De Beers Mines
diamond distinct from other diamonds and also to associate the prestige
of the name with other luxury items.
D.T.C. To create its new retail division, De Beers partnered with luxury goods
manufacturer LVMH Moet Hennessey Louis Vuitton. LVMH distributed
Sorting and Evaluation
brands that fit De Beers’ new vision, such as its Louis Vuitton luggage,
of Rough
handbags, and accessories.

The independent, equally owned joint venture was named De Beers LV.
Independent Sightholders
It had exclusive worldwide rights to the De Beers name for luxury goods.
Its focus was on marketing De Beers diamond jewelry directly to con-
sumers. After initially opening a few stores in London, Tokyo, and New
Other Diamond Manufacturers
York, the company set its sights on building 150 stores worldwide.
De Beers LV was conceived as being completely independent of De
Beers mining companies and the DTC. De Beers management had no
De Beers LV
operational involvement in the day-to-day running of the new company.

Retailing and Jewelry
Instead of buying rough diamonds from De Beers or the DTC, De Beers

Consumers LV bought its polished goods from sightholders and other sources.
In 2006, the De Beers LV brand became De Beers Diamond Jewellers.
Under any name De Beers was compelled to keep the new venture struc-
turally separate from itself for legal reasons. De Beers was already the
subject of various lawsuits in the US, largely stemming from its 1990s
De Beers’ reorganization resulted in
vertical integration that allowed it to
practices when the company still ruled the diamond industry.
market its own branded diamonds to
In an effort to move on with its new identity, De Beers settled two

consumers. It avoided charges of unfair
significant US lawsuits. One was for antitrust violations in the sale of

competition by forming a new diamond
jewelry marketing company that bought
industrial diamonds. The other was a class action suit against the company
polished diamonds from major sight-
for keeping the price of diamonds artificially high.

holders and large manufacturers rather
than directly from its parent company.
74
The new De Beers faced not only legal issues from its past, but also
marketing issues for its future. The results of the great branding experi-
ment were mixed at best. There was a growing sense in the industry that
diamonds, unlike luggage and clothing, did not lend themselves to the
kind of branding that De Beers had envisioned. There were signs, too, that
De Beers’ marketing partners did not want to continue making the huge
investment in time and money needed to make it work.
DE BEERS AS CORPORATE CITIZEN

Among its many changes, the twenty-first century De Beers took serious
strides to reposition itself as a good corporate citizen. In many ways, its
advocacy of corporate responsibility had a more profound impact on the
diamond market than its advocacy of branding. De Beers faced a number of class action
The centerpiece of this effort was what it called its Best Practices
lawsuits in the 1990s. The company
Principles (BPP). De Beers formally introduced BPP in 2001 to guide

settled some of them so it could develop
a more visible presence in the US market.
ethical business standards for itself and its sightholders.
The principles addressed consumer confidence first. Like any other
luxury item, natural diamonds depend upon an image of prestige. They
often symbolize milestones in people’s lives, giving them higher emotional
importance. Consumers rely on the knowledge and integrity of the diamond
industry to help them make informed choices about diamond quality. One
of the declared principles is to uphold the highest professional and ethical
standards. De Beers insisted on a similar commitment from each of its
sightholders.
BPP also addressed diamond treatments. De Beers sought to assure
consumers that their diamond purchases were free of treatment beyond De Beers’ effort to build a reputation as
cutting and polishing. BPP also declared that non-disclosure of diamond
a good corporate citizen was formalized
treatments and offering of laboratory-grown diamonds and simulants as

as its Best Practices Principles.
natural diamonds were obstacles to consumer faith.

Treatments became an acute issue in 1999 with the revelation of per-
manent and irreversible diamond color created by a nearly undetectable
De Beers’ advocacy of corporate
combination of high pressure and high temperature (you’ll learn more responsibility had a more profound
about this in Assignment 19). With De Beers so heavily invested in the impact on the diamond market than
aura of natural diamonds, the BPP gave the company a leadership position
in detecting and disclosing treatments of all kinds.
its advocacy of branding.
Equally threatening to the integrity of the diamond trade was the issue
of conflict, or “blood,” diamonds, so called because they were used to
Best Practices Principles (BPP)—
finance war and terror.

De Beers’ formalized commitment
of itself and its sightholders to the
In the 1990s, conflict diamonds became a public-relations nightmare for
highest ethical standards.
the industry due to growing consumer awareness of the human suffering
associated with diamonds from war-torn countries like Sierra Leone and
Conflict diamonds—Rough dia-
Angola. It became apparent that trading in diamonds from countries where

monds used by rebel movements
violent rebel movements profited from diamond mining damaged the

or their allies to finance conflict
entire industry and undermined diamond’s romantic allure.

aimed at undermining legitimate
governments.
75
De Beers backed the Kimberley Process (KP), the industry response to

the crisis. Fifty-three nations ratified the agreement in 2003. It committed
all of them and any future signatories to assuring that any diamond crossing
their borders carried KP certificates declaring their point of origin as
legitimate and not involved in funding conflict.
By 2012, KP signatories represented 80 countries, including all members
of the European Union. The US has adopted separate but equally strict
measures. They all aim to protect the diamond trade from being exploited
as a money-laundering or fundraising source for international terrorism.
De Beers revised its BPP to incorporate its commitment to the KP as
well as other diamond trading issues that touch on the unjust treatment
and suffering of people. The 2007 edition of the BPP imposed strict
trading and disclosure practices on De Beers and its trading partners. The
Angola and Sierra Leone were two of
issues included human rights, child labor, forced labor, and money laun-
the focal points of the blood diamond
dering to fund terrorist activities.

controversy. Industry response to the
crisis resulted in the Kimberley Process.
DE BEERS MOVES FORWARD

In late 2008 and early 2009, the world experienced an economic crisis that
severely affected almost all markets, including—and especially—luxury
goods such as diamonds. Many of De Beers’ sightholders stopped buying
diamonds and refused to buy diamonds presented at sights. In response, De
Beers suspended diamond mining for several months. By the end of 2009,
the company was forced to seek large cash infusions to continue operations.
In 2011, the company suspended its famous “Diamonds are Forever”
Kimberley Process (KP)—
advertising campaign, which had run continuously since 1939. In 2012,

Diamond industry program
the Oppenheimer family sold its share in the company, ending its nearly
designed to ensure that diamonds
century-long management. De Beers, in turn, became a subsidiary of the

crossing international borders are
legitimate and do not fund civil
conflict or terrorism. mining giant Anglo American Corporation.
In 2012, De Beers continued its evolution by announcing that it would
change its corporate identity to the De Beers Group of Companies, which
will eventually absorb the company’s other operations, including the
Diamond Trading Company. According to a letter to sightholders, the
company’s stated goal is to become a “more customer-focused organiza-
tion” that can “grow the value of diamonds for decades to come.”
THE RISE OF THE FOURTH C—CUT

■ What factors led to the rise of the Fourth C?
■ How does the industry now recognize the importance of cut?
■ Where are the world’s cutting centers?
It could be argued that of the Four Cs used to measure diamond quality—
color, clarity, carat weight, and cut—cut has been the least defined. That
was largely due to the industry’s struggle to come up with a universally
acceptable standard for evaluating cut. Repeated attempts to offer precise
proportions for grading cuts culminated in 2005. After a 15-year study,
GIA, which had introduced its Diamond Grading System in the 1950s,
announced that it would issue cut grades in its reports for the first time.
76
Rio Tinto’s Mine-to-Market Commitment
The website of Rio Tinto Diamonds clearly states its commitment to sustainable
development. Its corporate program focuses on the “exploration, production, and
sales of rough diamonds.”
De Beers isn’t the only diamond producer to embrace the concept

of corporate responsibility. Diamond producer Rio Tinto has
committed to “a collaborative approach to sustainable development
and corporate social responsibility,” according to its website.
Part of this is a commitment to sustainable development that
protects the environment and surrounding communities. Its claim
to being the only company that sells its diamonds through its own
marketing channels allows it to assure buyers of their country of
origin and non-conflict source.
The Murowa diamond mine is located in South Central
Zimbabwe, a republic in South Africa. Its owner, Murowa
Diamonds, employs about 180 local workers and also hires local
contractors. Rio Tinto’s 78 percent interest allows the company to
assist with sustainable development programs and humanitarian
assistance to the community.
The mine’s output is sorted and sold by Rio Tinto Diamonds’
operation in Antwerp, Belgium.
77
Computer imaging helps cutters

plan diamond cuts with unparalleled
precision.
Both by Eric Welch/GIA
Lasers caused a revolution in diamond cutting by allowing several diamonds to be

fashioned at the same time while also increasing cutting precision.
Cutting center—A city, region, or The breakthrough came as a result of three factors. The first was con-
country with a large number of sumer demand for a cut grade, driven primarily by Asian diamond buyers.
gemstone manufacturers. The second factor was the GIA mandate to provide a scientific basis for
all aspects of diamond grading. The third was advanced diamond manu-
facturing technology.
Israeli engineers pioneered many of the innovations in diamond
manufacturing technology. This was partly an outgrowth of Israel’s long-
standing role as a diamond cutting center. But more importantly, it was a
reaction to the growing competition from Asian manufacturers who had a
big manpower advantage over their Israeli counterparts.
The Israelis’ goal was to use machines to do the work of people better
and more quickly. They capitalized on progress in the areas of lasers,
computer imaging, and precision measurement and successfully adapted
these technologies to diamond manufacturing.
This led to enormous improvements in all aspects of the diamond man-
ufacturing process. Lasers allowed a single cutter to do the work of 20.
Computer imaging allowed cutters to plan their cuts with more precision.
Automatic centering devices allowed cutters to align diamond rough for
more focused cutting.
These improvements allowed diamonds to be cut to ever more exacting
and exotic specifications. This increased the potential for successful
78
World Diamond Cutting and Trading Centers
Belgium Russia
Canada
New York
China
Israel India
Thailand
Angola
Brazil
Botswana
Namibia
Australia
Mining South Africa
Cutting
Peter Johnston/GIA
The world’s established diamond cutting and trading centers are in Belgium, India, Russia, Israel, and the United States.
Centers in Africa have also emerged, and China is poised to become the next major diamond cutting center.
diamond branding. An intense period of creativity, from 1995 to 2004,

increased proprietary diamond cuts from little more than a dozen to over
a hundred. In this way, the diamond industry was beginning to meet the
needs of more discerning diamond consumers.
CUTTING CENTERS
To fulfill its commercial potential, a rough diamond must pass through a
cutting center, a place with a large number of diamond-manufacturing
businesses. Several factors determine the way a cutting center operates.
They include local customs, government regulations, labor costs, prices,
and the variety of goods available.
Each cutting center has its own identity. One might be known as the best
place to go for high-quality diamonds, another as the best place for small dia-
monds. Some are free-trade zones where no taxes or tariffs are collected.
Some cutting centers, like Antwerp and New York, are also major dia-
mond-trading centers, where diamonds are bought and sold. Antwerp, for
instance, is the key distribution center for rough from BHP’s vast mining
operations through its sales office in that city. A key feature of a trading
center is the diamond bourse, which is a club where diamond dealers meet
to sell, trade, and share industry news.
79
Andy Lucas/GIA
Modern equipment allows a handful of Indian workers to perform diamond-processing tasks that once required hundreds of
human hands.
India’s roots in diamond mining are ancient. Some of the most famous
INDIA
diamonds in history came from India’s legendary Golconda region.

Today, India’s diamond mining is incidental, yet India’s status in the dia-
mond trade is immense.
By 2004, the major destinations for most of the world’s diamond rough
were in India, including the large metropolis of Mumbai (Bombay) and
the small town of Surat. More than 90 percent of manufacturing for the
diamond market was done in India, employing over a million Indian
workers.
A huge diamond consuming class had grown out of India’s emerging mid-
dle. Without a diamond mine of note on its entire subcontinent, India was as
Eric Welch/GIA
much of a force in the new multi-channel market as any diamond producer.

India cuts and polishes 90 percent of
the world’s diamond by volume. Most of
India’s rise to prominence began modestly in the 1970s and took off
that is done in Surat, which has had to
when it became the primary destination for the Argyle mine’s rough.
overcome environmental disasters and
While the cost of cutting that rough would have been prohibitive in more
religious conflict to establish itself as a
premier cutting center.
traditional cutting centers, manufacturers in India were able to make it
profitable. First they had plenty of low-cost labor available to give the
smallish material the intense effort it required. Second they introduced
diamond-impregnated polishing discs into the process to prevent the
sometimes-brittle stones from breaking.
The Argyle diamond experience perfectly positioned India for taking
its commanding place in the new multi-channel market. Its workforce, at
first known just for its size, became known for its quality as an entire gen-
eration of diamond cutters gained expertise working on Argyle diamonds.
80
Sebastian D’Souza/AFP
Although many Indian-processed

diamonds are smaller than 0.03 ct.,
designers use them to great effect in
jewelry. This award-winning necklace is
set with 1,414 tiny diamonds totaling
132.94 cts.
Eric Welch/GIA
As its industry has matured, India has moved from processing tiny diamonds to
become well known for cutting larger diamonds like this one.
By 2008, highly-skilled Indian diamond cutters were taking their expert-

ise to Africa to both train African diamond cutters and reap the reward of
higher pay for their work.
India’s diamond manufacturers retrofitted their facilities with the latest
in diamond-cutting technology, such as lasers and automated bruting
machines. Such advances allowed them to answer a growing demand for
higher quality cuts in product as small as “stars”—an industry term for
tiny full-cut round brilliant diamonds. Properly cut, a carat of rough can
yield about 50 of them.
Indian manufacturers also made two strategic decisions to avoid get-
ting trapped by specialization in small stones. They moved into finished
jewelry as a hedge against the softening market in loose stones. And they
began processing larger, higher quality stones.
With a virtual monopoly on manufacturing the mass quantities of rough
flowing out of Russia and Australia, they expanded their reach. Access to
foreign markets was greatly enhanced by the Indo-Argyle Diamond India initially made its mark in manufac-
Council, an outgrowth of the original deal between India and Argyle. The
turing by cutting smaller diamonds for
Council was especially effective in getting Indian goods into the lucrative
jewelry designs like these. The Indo-
US market. Through its marketing arm, the Council initiated deals with
Argyle Diamond Council helps promote
Indian goods to the US market.
mass marketers and retailers in the US.
Indian manufacturers worked closely with the Council’s US clients to Ke y C o n c e p t s
fashion stones and finished jewelry to meet specific requirements for qual- India’s diamond manufacturing indus-
ity and service. As a result, many US groups established buying centers in
Mumbai, near the heart of India’s cutting industry. The Council was also
try makes it a major force in the new
vigilant in lifting the living standards of Indian diamond workers.
multi-channel market.
81
Diego Lezama Orezzoli/Corbis
A cathedral in Antwerp looms over the city’s historic diamond trading district.
Antwerp’s role as a major cutting center has changed to that of the world’s biggest
trading center for diamond rough.
In 2007, India was cutting and polishing 57 percent of the world’s

rough by value and 90 percent by volume, making it the dominant pro-
cessing center. It achieved this lofty status by meeting the foreign and
domestic demand for goods in the full range of qualities and sizes, includ-
ing stones larger than 10 carats.
OTHER CUTTING CENTERS
While India was gaining prominence, other cutting centers were losing
position. Antwerp in Belgium and Tel Aviv in Israel were especially hurt
by India’s rise.
Antwerp dominated the European gem trade in the Middle Ages.
By the 1400s, the city had become a leading diamond trading and manu-
facturing center. Later, its cutters became well known for cutting large
diamonds.
Historically, the city has been the trading center for the majority of the
world’s rough, polished, and industrial diamonds. It remains a major center
for goods sold outside the DTC’s distribution channels, and as much as 45
percent of the DTC’s sales in recent years have passed through Antwerp.
Yet today, fewer of De Beers’ prime sightholders are based in Antwerp, and
it is no longer a manufacturing hub.
Antwerp’s diamond processing industry is under the control of the
Hoge Raa Voor Diamant (HRD), which regulates and represents
Antwerp’s diamond trade. Interestingly, by 2006 members of Antwerp’s
Indian community had overcome long-standing ethnic exclusion to hold
the majority of seats on the HRD’s High Council.
82
©Fred Ward 2002
Israel’s diamond manufacturing industry, centered in Tel Aviv (left), has met competition from Indian diamond cutters with tech-
nological innovation (right) and specialization in precision fancy cuts.
When Hitler invaded Holland and Belgium in 1940, many Jewish

diamond cutters fled to what was to become the state of Israel. By the
1970s, Tel Aviv was one of the world’s leading cutting centers. At first, the
country’s cutters concentrated on processing small diamonds. But in the
1980s, the country became well-known for its work with large diamonds
and fancy cuts.
In recent years, Tel Aviv has focused on technological innovation and
the production of precision-cut fancy shapes. But like Antwerp, its role as
a manufacturing center has declined due to rising labor costs and
increased global competition. By 2007, the Israel Diamond Institute was
aggressively seeking to reverse the trend by initiating partnerships with
China and various African mining countries.
In addition to being a highly specialized cutting center, New York City
has long been a major trading center that rivaled Antwerp and Tel Aviv
in influence. Customs facilities in New York handle almost half of the
global output of polished diamonds on their way to US jewelry manufac-
turers and retailers. New York meets the challenge of high labor costs by
Eric Welch/GIA
specializing in cutting large, high-quality stones. The city’s cutters are

The Diamond Dealers Club in New York
known for producing extraordinary diamonds for the world’s wealthiest

looks out over that city’s famed
diamond lovers.
Diamond District along 47th Street.
China and Thailand are also significant cutting centers. China’s growing
diamond-cutting industry has become a major competitor to India. Its
share of the world’s diamond-processing business had reached 17 percent
by 2014. Its growth continues, boosted by the acquisition of diamonds
directly from African mines in which China has a stake, as well as by
government support.
83
Valerie Power/GIA
With help from their government, Chinese diamond manufacturers in Shanghai and
other cities are aggressively seeking deals with foreign diamond suppliers. Their
goal is to make China a major diamond cutting center.
China’s manufacturers specialize in well-cut small rounds produced

from well-shaped rough. They have also increased their production of
high-quality princess cuts in sizes below 20 points. Many other cutting
centers send their goods to China’s factories for finishing.
Thailand has had a long-standing role as a major colored stone cutting
center. But in recent years, the Thai capital of Bangkok has increased its
involvement in diamond manufacturing as well.
As a direct result of beneficiation and overall nationalist trends, some
African countries are also emerging as diamond cutting centers.
Increasing percentages of locally mined diamonds are being processed in
countries such as Angola, Namibia, and Botswana.
THE TWENTY-FIRST CENTURY DIAMOND MARKET

■ What are the various types of retail venues?
■ How is electronic retailing changing the diamond market?
■ What role does Asia play in the financial health of the diamond market?
Regardless of how many channels it takes to get there, the diamond pipeline
always ends at the same place—the consumer. Consumers are finding their
diamonds in a variety of places, ranging from their personal computers to
Valerie Power/GIA
so-called big box stores like Walmart. The classic local jeweler who serv-
Traditional family jewelers as well as big
box stores like Walmart are known as
brick-and-mortar retailers.
ices a family’s jewelry desires from birthstones through golden anniversary
rings is still a presence, but competition is everywhere.
The big-volume buyers—department stores and discounters—are
among the main competitors. They made their biggest inroad into the
market in the 1990s, when they were able to capitalize on the surplus of
diamonds in the market by buying them in huge quantities. They were
then able to turn around and price them for consumers the market had
overlooked in the past. In the process, they created a new diamond buying
clientele and established themselves as a viable option for more seasoned
jewelry buyers.
84
ELECTRONIC SALES
Small independent retailers, high volume retailers, and even elite retailers
like Tiffany are all commonly referred to as brick-and-mortar retailers.
This means that their main business takes place within walls in a fixed
location. This is to distinguish them from the electronic retailers who con-
duct their business over television or by computer.
The shop-at-home television networks used the same volume-buying
tactics as the big box discounters as leverage in pricing diamonds for a
more bargain conscious jewelry buying public. Their success has been
repeated internationally as US pioneers in shop-at-home television have
introduced versions of their shows customized for foreign markets.
As a result of their enormous commercial success, the shop-at-home
networks have exposed one of the myths of the jewelry market, particu-
larly the diamond jewelry market. That is, that the act of buying a
diamond is such an emotional experience that it must be done person-to-
person. Some brick-and-mortar retailers, like
The collapse of that myth has been even more dramatically illustrated
Costco, double as electronic retailers
by the surge in online jewelry marketing. The television shop-at-home

by offering their customers the option to
buy online. Electronic retailers like Blue
shows were almost as well known for their personable hosts and hostesses
Nile are Internet-only operations.
as they were for their bargains. But online retailers don’t see much bene-
fit from personality driven sales. With little more than a picture, a price,
and a description of each sale item, they are finding an eager market for
their goods.
Brick-and-mortar retailer—
A traditional store consisting of
walls and a fixed location.
Electronic retailer—Business that

sells to consumers via television
or computer.
Electronic retailing showed an ability
to sell a huge volume of diamonds
without relying on the “personal
touch.”
Gilles Mingasson/Getty Images for QVC
Home shopping programs such as QVC rely on sales personalities to reach

customers. The success of Internet selling proved that emotional purchases like
diamonds can be made even in the absence of that personality factor.
85
Consumers are growing more comfortable than ever with buying

jewelry—especially diamond jewelry—online. The impact of online
selling has led many brick-and-mortar businesses to establish an Internet
presence of their own with the goal of using their online Web sites to
support traditional selling. One such strategy is a “site-to-store” deal,
where special offers are made online but must be redeemed in-store.
Many customers, however, don’t need such inducements. They use the
retailer sites to research items before walking into the store to make their
purchases in person.
While brick and mortar stores still account for more than 90 percent of
all diamond jewelry sales, more sales than ever are being completed elec-
tronically: Recent figures place them at about six percent online and about
five percent over mobile devices such as smartphones and tablets.
Traditional bourses, like this one in Tel
Aviv, were places where diamond pro-
The impact can also be measured in the culture. Cyber Monday, the
fessionals could securely make deals
Monday following Thanksgiving, has emerged as the major online buying

and build relationships by swapping
news and gossip. Today, the bourse is
being imitated by online traders.
day in the US. Estimates put more than 129 million shoppers online for
Cyber Monday in 2012. This amounted to more than 1.98 billion US dollars
in sales.
Even the staid auction houses were responding favorably to the grow-
ing respectability and viability of online jewelry selling. Sotheby’s
teamed with online auction giant eBay to conduct its electronic
auctions. And Christie’s entertains online bids through its Christie’s
Live option.
The appearance of the “online bourse” has been yet another testament
to the impact of the Internet on the diamond market. Diamond retailers
and wholesalers can log on to sites specifically designed for the business-
to-business trade. As with the traditional bourse, they can buy and sell
diamonds, swap news and gossip, and establish relationships with others
in the trade. The big difference is that all this can be done globally.
ASIA’S IMPACT
Ke y C o n c e p t s With so many powerful and divergent factors influencing the creation of
the multi-channel diamond market, it’s difficult to determine which had
the most influence. However, it’s reasonable to conclude that going for-
The future of the diamond market in
ward the biggest impact will be made by the growth of Asia as both a
manufacturing and consumption may
be in Asia, especially China and India. manufacturing center and consumer market for diamonds.
Since the mid-twentieth century, Asia has been steadily transitioning
from Third World status to third-of-the-world status. The difference is sig-
nificant especially as it relates to the two Asian giants, India and China.
By 2005, they accounted for 8.3 percent and 8.9 percent respectively of
worldwide jewelry consumption. This means that they no longer merely
respond to changes in the world’s markets, but they now help to shape
those changes.
In the late 1980s and early 1990s, Asia was the primary market for top
quality diamonds, which had become too expensive for American tastes.
An economic downturn in Asia during the 1990s shifted the flow back to
86
Choo Youn-Kong/AFP
In the 1990s, economic recession struck much of Southest Asia. Hundreds of

South Koreans lined up outside department stores to sell their diamond jewelry as
part of the country’s effort to raise foreign currency.
Eric Welch/GIA
In less than twenty years, India went from being known as a source of cheap labor
for the diamond industry to being one of the world’s most important consumer
markets for high-end jewelry.
87
the US, increasing supply there and driving down prices. De Beers had to
respond to the collapsed Asian jewelry market by drastically cutting back
on sales of rough to the area. This increased De Beers’ stockpiles, which
factored into the company’s major overhaul.
In the first decade of the twenty-first century the markets for diamond
jewelry in China and India experienced double-digit growth. In 2011,
China’s diamond market overtook Japan as the world’s second largest con-
sumer market for diamonds. India’s market is roughly equal to Japan’s. The
effects of these developments were seen in many aspects of the diamond
trade, but 2012 brought challenging economic conditions that slowed the
growth of the Asian markets once more.
Joseph Schubach
Diamonds have long been known as DIAMONDS AND THE MODERN ECONOMY
At the opening of the twenty-first century, the diamond industry showed a
enduring symbols of love and status.
lot of promise. There were new diamond mines and continued exploration
The question that remains for the future
for more sources that seemed to assure a plentiful supply of diamonds.

is whether there will be enough quality
diamond rough to meet the growing
The demand for diamonds was growing so rapidly that a shortage of rough
worldwide demand for high-end diamond
was not inconceivable.

jewelry.
However, that potential for rapid growth was interrupted in 2008, when
a recession affected the international economy. Consumer demand for
luxury products, including diamonds, plummeted. As a result, reduced
production and layoffs hit many levels of the diamond market. In
November of that year, De Beers announced it was cutting production by
up to 30 percent and reducing its London staff by 25 to 50 percent. This
included the halting of operations at mines in Africa and Canada for a
period of months in 2009.
Jewelry retailers were also hard-hit. Tiffany & Co. reported a 75 percent
drop in profits in the fourth quarter of 2008. More than 1,000 independent
jewelers went out of business.
A slow recovery began in late 2010 and the market has continued to
gradually improve since then. Many mines have resumed full production.
In 2011, after two years of weakness, polished diamond prices returned to
their pre-recession levels. With cautious optimism, diamond producers
and brokers have adjusted to the market’s “new normal.” And while con-
sumer demand has returned, supply has not increased along with it. This
is bound to lead to higher prices for rough as well as polished diamonds.
In 2012, De Beers announced further changes in its corporate structure.
The company relocated its sorting operation to Botswana, along with a
portion of its London staff. At the same time, Botswana established its
own independent operation, called the Okavango Diamond Company,
for the purpose of independently processing some of the country’s rich
diamond output.
In the sense that its hardness is legendary, a diamond may be forever.
But if there’s one lesson to draw from the industry’s recent history, it is
that the diamond market is not forever in any single shape or form.
88
NGOs and the Kimberley Process
©Teun Voeten
When NGOs started drawing links between diamonds and scenes like these of
war-ravaged children outside a shelter in Sierra Leone, the diamond industry
knew it had to act. The Kimberley Process was its response to blood (or conflict)
diamonds.
In 1998 Global Witness joined with other non-

governmental organizations (NGOs) to focus
worldwide attention on the use of diamonds to
fund war and terror. In 2000, diamond-industry
leaders formed the World Diamond Council to
develop policies and procedures to help the United
Nations combat the trade in so-called conflict (or
“blood”) diamonds.
This effort led to a gathering of diamond pro-
ducers in Kimberley, South Africa. That gathering
culminated in the UN-sanctioned Kimberley
Process (KP), which took effect in 2003. By 2012
there were 54 signatories to the KP, with the EU’s
member states counting as one. Combined, they oversee approxi-
Yves Boucau/AFP
mately 99.8 percent of the global production of rough diamonds.

During a three-day World Diamond
Congress, representatives of the United
Though not an official part of the process, the NGOs that

Nations discussed ways to supervise
started it all continue to monitor its effectiveness all along the

diamond commerce. The Congress
diamond market pipeline. They observe global diamond traffic,

eventually led to establishment of the
Kimberley Process.
looking for breaches in the process. They push governments for

greater involvement and survey retailers to gauge the nature and
degree of their support for the KP.
For more details about the history and current status of this
important issue, check out the official website of the World
Diamond Council at http://www.diamondfacts.org.
89
The CSO controlled diamond prices by buying and holding De Beers’ efforts at reinvention proved to be an evolving
supplies until demand increased. process.
A finished piece of diamond jewelry has much greater value De Beers’ advocacy of corporate responsibility had a more
than a rough diamond crystal. profound impact on the diamond market than its advocacy of
branding.
The low-wage Indian cutting industry allowed Argyle’s small,
lower-quality stones to be processed for the jewelry market. India’s diamond manufacturing industry makes it a major
force in the new multi-channel market.
Beneficiation helps countries exercise greater control over
their natural mineral resources. Electronic retailing showed an ability to sell a huge volume of
diamonds without relying on the “personal touch.”
New diamond supplies combined with major political and
economic events led De Beers to institute dramatic changes. The future of the diamond market in manufacturing and
consumption may be in Asia, especially China and India.
SOC sightholders had to demonstrate the ability to sell
diamonds and to add value to those diamonds in some way.
Key Terms
Beneficiation—A commitment to reserve a portion of Kimberley Process (KP)—Diamond industry program
the resources derived from any country for the eco- designed to ensure that diamonds crossing inter-
nomic development of that country. national borders are legitimate and do not fund civil
conflict or terrorism.
Best Practices Principles (BPP)—De Beers’ formal-
ized commitment of itself and its sightholders to the Supplier of Choice—Program adopted by De Beers
highest ethical standards. in 2001, in which it required its sightholders to help
increase market demand for diamonds.
Brick-and-mortar retailer—A traditional store consist-
ing of walls and a fixed location. Supplier of Choice 2—Program adopted by De
Beers in 2007 to answer critics and resolve short-
Conflict diamonds—Rough diamonds used by rebel comings of its original SOC program.
movements or their allies to finance conflict aimed at
undermining legitimate governments. Vertical integration—Involvement of a business or
industry in all aspects of its product’s market.
Cutting center—A city, region, or country with a large
number of gemstone manufacturers.
Electronic retailer—Business that sells to consumers

via television or computer.
90
How Diamonds Form 4
Diamond Formation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
What Diamonds are Made Of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Diamond and Graphite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
The Earth’s Layers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
The Right Temperature and Pressure Conditions . . . . . . . . . . . . . . . 99
Diamond’s Source Rocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
How Diamonds Reach the Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Diamond Transport and Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Arrival at the Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Key Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Key Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
91
• Explain how diamond’s formation makes it the hardest natural substance on earth.
• Describe how scientists determined where diamond formation takes place.
• Understand the explosive process that delivers diamonds to the surface.
• Explain the relationship between diamond’s special formation conditions and
its rarity.
92
HOW DIAMONDS FORM
Denis Finnin/American Museum of Natural History
A rough diamond in kimberlite.
HOW DIAMONDS FORM

A diamond has to go through a lot before it reaches the jeweler’s display
case. It forms deep in the earth under extreme heat and pressure. It’s
transported violently upward until it arrives at or near the earth’s surface,
where it’s forced from its hiding place by nature or by man. Then it’s cut
and polished until its natural beauty shines through.
Diamond’s splendor has been appreciated for centuries, but there was
not much scientific knowledge about it before the twentieth century. Since
then, research by chemists, physicists, geologists, and mineralogists has
added to the world’s understanding of diamond. In the past 50 years alone,
scientists have learned a lot about how diamonds form and how they’re
transported to the surface. This has made it easier to predict locations for
new diamond discoveries.
This assignment examines some of the latest theories about where and
how diamonds form, and how they reach the surface. In the next two assign-
ments, you’ll learn how exploration geologists use their knowledge of dia-
mond formation to find them, and how miners extract them from the ground.
93
Peter Johnson
Knowledge of diamond formation and earth science helps exploration geologists

find potential diamond deposits. They know that certain surface minerals usually
indicate the presence of a diamond deposit below.
Learning about diamond’s formation process should help you begin to

understand why a gem-quality diamond is so special. Without each
specific—and important—component of the process, diamond just
wouldn’t be diamond. Understanding the process is essential to under-
standing diamond’s rarity and value. With this new knowledge, you’ll
appreciate even more the extraordinary nature of the diamonds you see
every day.
DIAMOND FORMATION
■ How do pressure and temperature make diamond the hardest
substance on earth?
■ What is diamond made of?
■ Where in the earth’s structure are the best conditions for
diamond formation?
■ What types of rocks produce diamonds?
Extremes of temperature and pressure can cause dramatic changes in

any substance. Water, for example, freezes into a solid at very cold
temperatures. But ultrahigh pressure will also “freeze” water into a
solid. (The water quickly returns to its liquid state when the pressure is
relieved.)
Temperature and pressure are even more powerful when they work
together. The combination is what causes diamond’s atoms to link together
in the special way they do. As you’ll see, this unique bonding of its atoms
is what makes diamond the hardest substance on earth.
94
HOW DIAMONDS FORM
South Africa’s First Diamond was a Child’s Toy

THE EUREKA
Weight: 21.25 cts. rough, 10.73 cts. cut
Color: yellow
Clarity: unrecorded
Cut: oval brilliant
Source: Cape Province, South Africa
While the Star of South Africa (which you learned

about in Assignment 2) generally gets the credit for
starting the diamond industry in South Africa, the
Eureka was actually the first authenticated diamond
discovered there.
The name “Eureka” had its origins in the Greek
language. It means, “I have found it!” That’s why it
was the perfect name for a diamond that caught the
eye of Erasmus Jacobs, the 15-year-old son of a Cape
Colony farmer, in 1866. Thinking he’d found a pretty
pebble, he took it home and gave it to his little sister
to play with.
A neighboring farmer named Schalk Van
Niekerk visited the Jacobs farm. When he saw the
The Eureka was South Africa’s first
authenticated diamond. Today, it has a
children playing with some nice stones, he asked
place of honor in the Kimberley Open
to look at them. The “pretty pebble” caught his

Mine Museum.
attention, and he offered to purchase it. The children’s mother gave it to him
instead. After several attempts to determine its true identity, Van Niekerk entrusted
the stone to John O’Reilly, a local hunter and trader.
Like Van Niekerk, O’Reilly suspected it was a diamond, so he took it to the Civil
Commissioner in Colesberg. The Commissioner suggested sending it to a physician
(and amateur mineralogist) in Grahamstown. It was the physician who finally con-
firmed what the others had only suspected: It was a diamond weighing about 21.25
cts., worth £500 in its rough form.
The Eureka finally found its way to London, where experts confirmed its identity
and value. Cape Colony officials proudly displayed a crystal replica of the diamond in
their stand at the Paris Exposition of 1867. (They were afraid that the real diamond
would attract thieves.) Soon after that, the Eureka was cut into a 10.73-ct. oval brilliant.
This raised its estimated value to £800.
In 1947, a diamond that was believed to be the Eureka resurfaced at Christie’s auction
house. It was reportedly the center diamond in a bracelet that sold for £5,700. In 1966,
100 years after its discovery, De Beers purchased it and brought it “home.” It’s now on
display at the Open Mine Museum in Kimberley, South Africa, where it’s also known as
the O’Reilly.
95
WHAT DIAMONDS ARE MADE OF

From the time of its discovery, diamond posed a challenge to scientists:
What was this hard, beautiful, mysterious substance made of? There was
no answer to this question until the late 1700s.
In 1772, French chemist Antoine-Laurent Lavoisier set a diamond in an
oxygen-filled glass jar and used a magnifying glass to direct a concentrated
beam of sunlight on it. The diamond burned, but instead of leaving a pile
of ash, it vanished completely. Lavoisier noted that the only byproduct of
the process was carbon dioxide gas. When he burned charcoal using the
same method, the same byproduct resulted.
Years later, English chemist Smithson Tennant picked up where Lavoisier
left off. He converted identical weights of diamond and charcoal to exactly
the same volume of carbon dioxide, proving that they were essentially the
same substance in different forms. He published his results in 1797.
It took twenty years for the scientific community to accept Tennant’s
findings, but eventually (and through further experimentation) all had to
admit that the mystery had been solved: Diamond was composed of carbon.
Graphite is another material that’s made only of carbon. Carbon’s atomic

DIAMOND AND GRAPHITE
symbol is the letter C. This makes “C” the chemical composition of both
diamond and graphite. But their properties are very different. Graphite is
soft and slippery—an excellent lubricant. It’s also used in pencils, where
its softness allows it to rub off easily onto paper. Diamond, however, is
Antoine Lavoisier burned charcoal and
the hardest mineral substance on earth.

a diamond and found that both left only
carbon dioxide gas. He was the first
The difference between diamond and graphite lies in the way their
scientist to suspect that both were
carbon atoms fit together. This is caused by the different pressure and
made of the same element: carbon.
temperature conditions that exist when either mineral is forming.

Graphite’s atoms are arranged in strongly bonded layers, but the layers
have only weak bonds between them. In diamond, the atoms are
arranged in tight three-dimensional patterns, bonded more strongly—in
all directions—than graphite’s atoms.
To get a rough idea of the difference, hold your hands out with your
palms parallel to each other. Even with your palms and fingers touching,
you can easily slide your hands in opposite directions while still holding
Diamond and graphite are both made
them parallel. This is a simple imitation of the effect of graphite’s bonding.
of carbon.
Now, clasp your hands together tightly, with your fingers interlaced.
You’ll find that it’s almost impossible to break the bond between your
hands. Diamond’s crystal bonds work roughly the same way. (You’ll learn
more about this in Assignment 7.)
THE EARTH’S LAYERS

Planet Earth formed about 4.6 billion years ago. It solidified from the
clouds of gas and dust that made up the solar system. As the mass spun
slowly, the denser materials were drawn toward the center and the lighter
materials settled into the outer layers.
96
HOW DIAMONDS FORM
GRAPHITE
Laboratory-grown diamonds, pencil

lead, and powdered graphite are all
different forms of carbon. Natural
diamonds are also formed from carbon.
DIAMOND
The differences between diamond and

graphite lie in the way their carbon
atoms are connected. (The blue lines
in the illustrations represent those
invisible electronic connections.) In
graphite (top), the atomic bonds with-
in the layers are fairly strong, but the
bonds between the layers are weak.
The weak bonds allow movement
between the layers and makes the
resulting material “slippery.” This is
why graphite is an excellent lubricant.
In diamond (bottom), there are
strong bonds in all directions. This
makes diamond the hardest substance
on earth.
Peter Johnston/GIA
97
detail below
lower mantle
core
crust
upper mantle
Peter Johnston/GIA
The earth consists of three main layers: crust, mantle, and two-layer core. The larger
illustration shows the crust, with its ocean and land areas, resting on top of the
upper mantle. Note how thin the crust is in comparison to the layers underneath.
Crust—The surface and outermost Although the earth is actually a little flattened at the poles, it’s usually
layer of the earth. pictured as a sphere. From where you’re sitting, it’s about 3,900 miles
(6,300 kilometers) to the center. The earth’s three main layers are the
Mantle—Layer between the crust, the mantle, and the core.
The first layer is the crust. It’s a layer of hard, strong rock that’s
earth’s crust and its core.
extremely thin compared to the layers beneath it. Its thickness ranges from
about 3 to 25 miles (5 to 40 kilometers), although it can be much thicker
Core—Earth’s innermost layer.
under mountain ranges. The crust is thinnest under the oceans.
98
HOW DIAMONDS FORM
Beneath the crust is the mantle, which has a maximum thickness of

about 1,790 miles (2,880 kilometers). Structurally, the mantle is rocky near
its outer surface, more fluid at its deeper levels. Geologists sometimes
divide the mantle into the upper mantle and the lower mantle, with the
dividing line at about 410 miles (660 kilometers) beneath the surface.
Under the mantle, the earth’s core consists of a molten (melted) layer
that’s about 1,410 miles (2,270 kilometers) thick, and a solid center
about 1,490 miles (2,400 kilometers) in diameter. Much of the earth’s
inner heat radiates from the core: At about 11000ºF (6000ºC), it’s as hot
as the surface of the sun! The only thing that keeps the center solid is the
extreme pressure at that depth—more than 1 million times greater than
the earth’s atmosphere at sea level.
THE RIGHT TEMPERATURE AND PRESSURE CONDITIONS

Scientists have been trying for centuries to find just the right combination
of conditions for laboratory-grown diamond production. In the last half
of the twentieth century, this research resulted in scientific advances in
the study of ultrahigh pressures. Today, the technology is used in a wide
variety of applications, including diamond synthesis.
After years of careful research, scientists were able to estimate the
conditions required for natural diamond formation: a temperature range of
2102°F to 2192°F (1150°C to 1200°C) and pressure between 50 kilobars
and 70 kilobars.
Research into diamond synthesis helped unlock the secrets of natural diamond
formation. Herbert Strong (right) and James E. Cheney (left) were members of the
diamond synthesis research team at General Electric in the 1940s. One of their
diamond-making tools was this 1000-ton press.
99
Peter Johnston/GIA
This map shows the distribution of cratons around the world. Some of them contain diamond-bearing deposits, and some don’t.
A kilobar is a unit that scientists use to measure extremely high

pressure. The normal, everyday pressure on earth at sea level is about one
bar, and a kilobar is 1,000 times that. But a diamond really feels the
pressure. Forty-five kilobars is 45,000 times normal pressure: an incredible
figure!
Armed with information about the temperature and pressure conditions
necessary for diamond formation, modern geologists studied the kinds of
rocks that accompanied diamonds to the surface. They also studied the
mineral inclusions trapped within existing diamonds. Then they compared
those findings to what they knew about the conditions and materials at
different levels inside the earth.
They concluded that the right temperature and pressure conditions
exist in very limited areas of the earth’s upper mantle, between 90 miles
and 140 miles (about 140 kilometers and 220 kilometers) beneath the
surface. At that depth, those ideal conditions work together to force
carbon atoms to form the extremely strong bonds found in diamond
crystals.
100
HOW DIAMONDS FORM
diamond-bearing
eruption
continental
crust
craton
diamond
storage
area
mantle
eruption
without
diamonds
Peter Johnston/GIA
A craton is an ancient, deep, and stable portion of a continent. Its heat and pressure provide the right
conditions for diamond formation. Conditions under a craton are also stable enough to preserve diamonds
for hundreds of millions of years after formation.
The best temperature and pressure conditions for diamond formation Cratons—Ancient, large, and
exist under large, geologically stable parts of the crust called cratons. stable parts of the earth’s
Cratons are the oldest sections of the landmasses. They make up the continental crust.
interior portions of the continents, where they’ve existed without change
for millions of years.
Igneous rock—A category of
Cratons exist only as parts of continents: There are no cratons under the
rocks formed from a molten state.
oceans, where the crust is thinner. As far as scientists know, this makes the Metamorphic rock—A category of
conditions under the earth’s oceans unsuitable for diamond formation. rocks that have been altered by
heat and pressure.
DIAMOND’S SOURCE ROCKS

The basic requirements for diamond formation are precise temperature
and pressure conditions in the right combination, and an environment
with sufficient carbon. By studying the inclusions in diamond crystals as
Diamonds form under cratons, which
well as the rocks that accompany diamonds to the surface, scientists found
are located only under continental
that diamonds form in two different types of rocks. Peridotite (pe-RID-o-tite)
landmasses.
is an igneous rock, while eclogite (EC-lo-gite) is a metamorphic rock.
101
Diamonds and the Geotherm

The graph illustrates a simple fact: the deeper you go into the
earth’s layers, the hotter it gets. “Geothermal gradient” is the sci-
entific name for this. It’s the rate at which temperature increases
with depth.
In the graph, the lower curved
line—the continental geotherm—
shows how temperature rises
with pressure and depth under
landmasses. The ocean geo-
therm line shows the same for
ocean geotherm
oceanic areas. Note that the

graphite: not enough
pressure for diamond
temperature rises more rapidly

formation
increasing depth and pressure
with depth under the oceans

than it does under the continen-
continental
tal crust. This is because the

geotherm
crust is thinner under the oceans,

so there’s less “insulation”
between the hot mantle and the
surface.
The lower left corner of the
graph shows where conditions
are ideal for diamond formation.
In the dark blue area, the pres-
sure and temperature conditions
ideal conditions for
would be more likely to result in
the formation of graphite.
diamond formation
too hot for
Note that the continental and

diamond
oceanic lines pass through the

formation
colored areas at different places. The continental line passes through

increasing temperature
The light blue, lower left corner of the the graphite and diamond areas, and crosses the border between
them. The oceanic line—showing a faster temperature rise—doesn’t
graph shows where the combination of
cross the diamond-formation zone of the graph. This shows that

conditions is just right for diamond
conditions in the layers under the ocean aren’t suitable for diamond
formation. The ideal depths are between
formation.
90 and 140 miles (140 and 220
kilometers), with temperatures from
The geothermal gradient is determined by several factors. One

2102°F to 2192°F (1150°C to 1200°C).
factor is the amount of heat that flows from deep in the earth.
Another is the amount of heat that different types of rocks can hold
and transport. The earth’s geothermal gradient varies from place to
place, but it averages approximately 77°F (25°C) for each 0.62 mile
(1.00 kilometer) increase in depth.
Peter Johnston/GIA
102
HOW DIAMONDS FORM
Peridotite is an ancient rock type that’s Eclogite contains the remnants of

one source of the carbon for diamond ancient life forms that provide carbon
formation. This peridotite contains for diamond formation. This chunk of
minerals that indicate the possible eclogite contains diamonds on its
presence of diamond. surface.
Igneous rocks start out in a molten or partially molten state and become
solid when they cool. Metamorphic rocks are pre-existing rocks that have
been altered by heat and pressure.
Peridotite and eclogite have different mineral compositions. Each one
exists under precise temperature and pressure conditions at specific
depths within the earth. Each one also provides its own supply of carbon
and releases it under different conditions. There’s evidence that each one
produces diamonds with characteristic—and different—crystal forms and
inclusions.
Peridotite, where most diamonds form, probably came into existence
Subduction—Process in which two
soon after the earth first formed. Peridotite contains the most ancient
crustal plates collide, forcing one
under the other.
source of the earth’s carbon, which is released by circulation that takes
place in the mantle. Because there’s plenty of available material, the
carbon-releasing process is fairly constant. To scientists, this means that
the carbon needed for diamond formation is always present. It also means
that diamond formation might be happening, miles beneath you, as you
read this.
Eclogite’s carbon is contained in ancient rocks that are closer to the
earth’s surface. Eclogite is a younger rock than peridotite, and occurs at
The carbon needed for diamond
much shallower levels. Its carbon comes partly from organic matter that
formation is always present.
didn’t exist when the earth first formed. This organic matter becomes part
of the eclogite, and its carbon is released when the crustal rocks that con-
tain it are dragged deep into the earth in a process called subduction.
103
Plate Tectonics
The study of the formation,
structure, and movement of the
earth’s landmasses is called plate
tectonics. The landmasses, or
plates, ride on a layer of partially
melted rock in the mantle.
Heated currents circulating with-
in the mantle keep the continents
moving. The movement is
known as continental drift.
About 230 million years ago,
the earth’s major landmass was
a single continent—later named
Pangaea. Pangaea slowly sepa-
rated into sections that eventu-
ally became the continents that
exist today. (You’ll learn more
about this in Assignment 6.)
Forces are still pushing con-
tinents apart. The Mid-Atlantic
Ridge lies in the middle of the
Atlantic Ocean, and hot magma
Fossil evidence—like this fish tail in
rises constantly along its inner

a rock from Antarctica—shows that
seam. The rising magma forms

Antarctica once had a more tropical
climate. Scientists use continental
drift to explain how the boundaries
new ocean floor and widens the
space between the Eastern and
and climates of the earth’s continents
Western hemispheres by about

changed over hundreds of millions
an inch per year.

of years.
The concept of continental drift was proposed in 1912, but it

was not widely accepted by scientists until the late 1960s. It’s
now considered scientific fact, and it explains many geological,
botanical, and zoological riddles. Why, for example, were fossil
remains of tropical plants found in frigid Greenland? How could
evidence of ancient glaciers be present in the hot, humid jungles
of Brazil? And, most important to this course, what’s the connec-
tion between the diamond deposits of the African continent and
those of South America?
These questions and others are the subjects of ongoing
research. In the process, knowledge of diamond formation is
increasing and making diamond locations easier to predict.
104
HOW DIAMONDS FORM
Peter Johnston/GIA
This is what scientists think the earth looked like about 230 million years ago.
There was one supercontinent, called Pangaea, that eventually broke up into
the continents we know today.
Peter Johnston/GIA
Mid-ocean ridges are places where hot magma rises to form new ocean floor.
This increases the space between continents, pushing them slowly apart.
105
melting rocks
continental crust
oceanic crust
convection current
Peter Johnston/GIA
Subduction occurs when two plates of the earth’s crust collide, and one is forced under the other. The
rocks of the lower plate melt. When this occurs, it releases carbon from eclogites and makes diamond
formation possible.
Subduction occurs when two of the earth’s crustal plates collide and
one is forced under the other. The lowered plate heats up, causing its
component minerals to melt and release their trapped carbon. Because
it’s dependent on this process, the release of carbon from eclogite isn’t
constant. Eclogite’s diamonds tend to be younger than peridotite’s
diamonds.
In both peridotite and eclogite, if temperature and other factors like
pressure and chemistry are favorable, the carbon atoms released by the
melting rock bond to build diamond crystals.
106
HOW DIAMONDS FORM
HOW DIAMONDS REACH THE SURFACE

■ Which rocks deliver diamonds to the surface?
■ How do diamonds reach the surface?
■ When were diamonds delivered to the surface?
■ What happens to diamonds once they reach the surface?
So far, you’ve learned some basic information about how and where dia-
monds form. But unless those diamonds are also delivered to the surface,
there’s no way to access them. Indeed, there might be vast deposits of dia-
monds that will remain in the mantle forever.
After formation, if conditions remain constant, diamonds might remain
underground for hundreds of millions of years before they’re carried to
the surface. But the delivery itself is rapid. It has to be: Under the inner
earth’s extreme heat conditions, any diamonds that spend too long under
decreased pressure won’t survive.
DIAMOND TRANSPORT AND DELIVERY

Diamond deposits are found in two types of rock: kimberlite and lamproite.
Their mineral and chemical compositions are fairly similar. The main
difference between them is that, while kimberlite tends to occur in the mid-
Diamonds might wait hundreds of
dle of cratons, lamproite is commonly found at the edges of cratons, or
millions of years before they’re
even in the zones immediately around them. The Argyle mine in Australia, carried to the surface.
which you’ll learn about later in the course, is an important lamproite
diamond source. Diamonds that exist today were
Kimberlites and lamproites have been pushed up to the earth’s surface
for billions of years. Sometimes, they carried diamonds with them. The
delivered to the surface between 2.5
process, whether the materials contain diamonds or not, is called
billion and 20 million years ago.
emplacement. The first diamond-bearing emplacement probably occurred
more than 2.5 billion years ago, and the most recent was probably around Kimberlites and lamproites transport
20 million years ago. diamonds to the surface, but
It’s important to remember that gem-quality diamonds don’t form in diamonds don’t form in them.
kimberlites and lamproites. These rocks merely carry already-formed
diamonds to the surface. This distinction wasn’t always common knowledge.
It wasn’t until scientists developed the technology to measure a rock’s age
that they determined diamonds were millions or billions of years older
than the rocks that transported them.
Kimberlite—An igneous rock
that transports diamonds to the
Heat trapped deep within the earth keeps portions of the mantle in a surface.
melted, or molten, state. The molten rock material, called magma,
expands as it heats up. The heated magma rises, just like the warm air in
Lamproite—An igneous rock, rarer
a room rises toward the ceiling. As the magma rises, it begins to cool.
than kimberlite, that transports
Cooling causes it to contract and get heavier, so it begins to sink. As it
diamonds to the surface.
descends, it heats up again, starting a new upward cycle. These constantly
repeating cycles of heating and cooling, rising and falling, are called
Emplacement—A geologic
convection currents. They keep the partially molten layer of the mantle in
process that delivers materials
constant motion.
(sometimes diamonds) to the
surface.
107
From the air, the grayish kimberlite in this open-pit mine (Jwaneng, in Botswana)
stands out against the surrounding orange-colored soil. The kimberlite extends for
thousands of feet underground.
Most of the world’s diamond deposits are found in kimberlites, but a few are found
in lamproites. This is the Argyle mine in Australia, a well-known lamproite diamond
deposit.
108
HOW DIAMONDS FORM
How Old Is a Rock?

Scientists estimate that the
earth is about 4.6 billion years
old. So far, the oldest rocks found
on its surface (in northwestern
Canada) are about 4.0 billion
years old. However, in 2014
scientists confirmed that a tiny
zircon crystal from Australia’s
Jack Hills was 4.4 billion years
old, only slightly younger than
the earth itself.
Scientists measure the age of
a rock with a process called
radiometric dating. The miner-
als in a rock might contain
radioactive elements. If they do,
those elements give off atomic
particles as they decay. As a
radioactive element emits its
The age of a diamond would be impossible
atomic particles, it gradually

to determine if it didn’t have inclusions.
changes to another form of the

Many inclusions found in diamond contain
same element or to a different

radioactive elements that decay at set
rates. This makes it possible to determine
element: Scientists call it a
their age and the age of the diamond that
“daughter” or end product.

encloses them.
There are several naturally occurring radioactive elements. Each

decays at a set rate and forms a specific end product. Scientists
measure the end products by chemically separating the radioactive
elements from the rock or mineral and calculating the amounts using
sophisticated laboratory instruments called mass spectrometers. As
long as they know the rate of decay of each radioactive element,
scientists can figure out how old the rock or mineral is.
Diamonds themselves can’t be dated: Their radioactive elements
decay too fast to be measured. Fortunately, some diamonds contain
inclusions with elements that can be dated. Research published in 2010
indicates that the youngest known diamonds—found in a Brazilian
kimberlite—are just 107 million years old. On the other hand, the
oldest known diamonds—from Canada’s Ekati mine—are as much as
3.5 billion years old.
Using radiometric dating of diamond inclusions, scientists determined
that diamonds are often much older than their host rock. Diamonds that
formed 3.3 billion years ago have been found in kimberlite deposits only
100 million years old. This proves that diamonds can be stored deep in
the earth for a long time before being transported to the surface, and
also that kimberlites and lamproites are carriers, not formation sources,
of diamond.
109
Julien Grondin/iStockphoto
Molten conditions within the earth sometimes lead to violent eruptions. Volcanic
formations like this—with hot lava flowing out of the earth—do not contain diamonds.
The materials that delivered diamonds to the surface were more solid and the delivery
itself was much more explosive.
If the mixture of chemical elements is right, the magma will form

kimberlite or lamproite. If, as it rises, it meets an already-existing deep
fracture in the crust, it will continue to move upward. If the rising kim-
berlite or lamproite passes through a diamond-bearing area of a craton,
it will pick up and carry already-formed diamonds. The diamonds might
remain embedded in boulder-sized pieces of the peridotites or eclogites
110
HOW DIAMONDS FORM
Michael Busselle/Corbis
Like a champagne cork popping out of its bottle, diamonds are delivered to the
surface by a rapid expansion of gases.
in which they formed. But often the magma violently breaks up the
surrounding rocks, releasing the diamonds into the rising mixture.
As the upward-moving rock mixture rises toward the surface, the
pressure above it decreases. With less pressure holding it down, the
magma gradually picks up speed. By the end of the journey, it’s moving
very fast. Within the last 1.5 miles (2.5 kilometers), scientists estimate
111
Peter Johnston/GIA
Diamonds might wait for millions of years (1) before a violent eruption brings them to the surface (2). The eruption results in a
diamond-bearing crater over an extremely deep pipe (3). Once a diamond deposit reaches the surface, it might wait millions of
years more before someone discovers it and begins building a mine (4).
112
HOW DIAMONDS FORM
that its speed is about 186 miles (300 kilometers) per hour. The decrease Pipe—A deep vertical formation at
in pressure also allows some of the fluids in the magma to expand into the earth’s surface that results
gases. Those gases are mostly water vapor and carbon dioxide, so they from a kimberlite or lamproite
act like the gases in a shaken bottle of club soda or champagne. emplacement.
The combination of speed and expanding gases is powerful enough to
force the rising rock mixture to explode through the surface. As kimberlite
blasts through the crust, it creates a deep carrot-shaped formation called a
pipe. Lamproite emplacement works the same way, but its pipe is wider at
the top, so it’s shaped more like a mushroom than a carrot.
The expansion of gases and the speed of delivery are important for
the survival of the diamonds. This combination keeps the diamonds
from converting to graphite, which would happen if they were exposed
to high temperature along with decreased pressure for a long period. In
a few places, geologists have found deposits containing diamond-
shaped masses of graphite that probably began the journey from the
earth’s depths as diamond. Changing temperature or pressure conditions
during the upward journey changed the diamond to graphite.
ARRIVAL AT THE SURFACE

The kimberlite—or lamproite—doesn’t flow out of the pipe like lava
from a volcano. It solidifies while it’s still very hot, so by the time it Very few kimberlites actually contain
reaches the surface it has changed from liquid to solid. The explosion is diamonds.
a mixture of solid rock, ash, and gases. After the material explodes
through the overlying rock, most of it falls back into its pipe, along with
its diamond cargo. What’s left is a deep diamond-bearing pipe, topped off
by a shallow crater.
Sometimes—millions of years later in some cases—new emplacements
can occur within older pipes. In fact, it’s possible for several emplacements
to occur in the same pipe. The “new” diamonds often have different features
from those delivered during earlier episodes.
Kimberlites are widespread—in the 1990s, there were about 6,000 of
them known worldwide. But fewer than 1,000 of them contained any
diamonds. Of those, only about 50 had enough diamonds to be economic
to mine, and only about 20 are still being mined today. With statistics like
that, it’s no wonder diamonds are considered rare and precious!
Understanding diamond’s formation and emplacement processes will
help you appreciate how unique diamonds really are, even if you don’t
have to relate the details every day. The knowledge itself will enrich your
experience, no matter what segment of the diamond industry you find
yourself in. In fact, as you learn about diamond exploration and mining in
the next two assignments, you’ll realize it’s a miracle diamonds exist at
all, and even more of a miracle that anyone finds them.
When you think about it this way, you’ll realize that gem-quality
diamonds are much rarer than you would guess as you contemplate the
array of diamond jewelry in the display case.
113
Where Do They Come From?

In recent years, the public’s attention was captured by news of
so-called “conflict diamonds.” In simple terms, they were
diamonds sold through unofficial channels to finance
destructive and tragic civil wars. To combat the problem,
some people proposed a “country of origin” report for every
diamond that enters the market. But is this possible? Diamond
researchers tackled this question.
Each diamond carries some traces of its geologic history
inside it, in the form of inclusions and other internal
characteristics. Unfortunately, it doesn’t also carry its
geographic history. While researchers might be able to find
some common characteristics of diamonds from a certain
area, they can’t be sure that all diamonds from that area will
have exactly the same characteristics.
As a diamond travels farther into the market, it becomes
less and less possible to determine its origin. Manufacturers
buy assortments based on their needs for diamonds of a
certain size and clarity, not on the basis of their geographic
origin. Those assortments usually contain diamonds from
many different places.
The cutting process removes some characteristics of the
rough that might have provided a clue to that diamond’s
geographic origin. And there’s no data to suggest that polished
diamonds from a single source retain any characteristics that
would connect them to each other and to their country of
origin. The problem is compounded in a piece of jewelry that
contains several diamonds.
By the time a diamond reaches the
rough-sorting stage, it has left its
Even currently existing advanced lab techniques fall short
original source far behind. Even a
when it comes to determining origin. Analysis of a diamond’s

careful scientific examination of these
spectrum (the way it handles light) and chemical composition

diamonds would not reveal their
have shown that there’s no relationship between these

country of origin.
characteristics and where a diamond comes from.

Without the possibility of scientific identification, a
“country of origin” report would only be possible if every diamond came through an “official”
source. Recognizing this, the industry implemented the Kimberley Process in 2003 to identify
diamonds that come from non-conflict areas. There’s more information about this procedure in
Diamond Essentials Assignment 6 and Diamonds Assignment 3.
114
HOW DIAMONDS FORM
Diamond and graphite are both made Diamonds that exist today were
of carbon. delivered to the surface between 2.5
billion and 20 million years ago.
Diamonds form in cratons, which are
located only under continental land- Kimberlites and lamproites transport
masses. diamonds to the surface, but diamonds
don’t form in them.
The carbon needed for diamond
formation is always present. Very few kimberlites actually contain
diamonds.
Diamonds might wait hundreds of
millions of years before they’re carried
to the surface.
Key Terms
Core—Earth’s innermost layer. Lamproite—An igneous rock, rarer
than kimberlite, that transports
Cratons—Ancient, large, and diamonds to the surface.
stable parts of the earth’s
continental crust. Mantle—Layer between the
earth’s crust and its core.
Crust—The surface and outermost
layer of the earth. Metamorphic rock—A category of
rocks that have been altered by
Emplacement—A geologic heat and pressure.
process that delivers materials
(sometimes diamonds) to the Pipe—A deep vertical formation at
surface. the earth’s surface that results
from a kimberlite or lamproite
Igneous rock—A category of emplacement.
rocks formed from a molten state.
Subduction—Process in which two
Kimberlite—An igneous rock crustal plates collide, forcing one
that transports diamonds to the under the other.
surface.
115
Exploring for Diamonds 5
The Exploration Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Primary and Secondary Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Finding Diamonds: Step by Step . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Deciding Where to Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Narrowing the Search . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Testing for Telltale Minerals . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
Locating Pipes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Testing for Diamond Content . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Analyzing a Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
Key Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Key Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
117
• Understand the reasons why diamond exploration continues even today.

• Describe the exploration process used to find diamond deposits.
• Define the differences among the major types of diamond deposits.
• Identify the standards used to judge the potential of a diamond deposit.
118
EXPLORING FOR DIAMONDS
Today, many exploration teams use advanced technology to search for possible diamond deposits.

In Assignment 4, you learned how diamonds form, and you followed them
from the earth’s depths to its surface. This assignment begins where that
assignment left off. You’ll find out what happens after they’ve made that
journey. You’ll learn about the kinds of deposits that contain diamonds
and about modern diamond exploration methods. You’ll also learn how
prospectors and exploration geologists, with primitive as well as modern
tools, have unearthed diamonds all over the world.
You might wonder why geologists and mining companies still spend
time and money looking for diamond deposits. After all, productive diamond
mines exist on almost every continent. But don’t forget that diamonds are
a product of nature. Like every other natural product, diamond supplies
are limited. Mines that were once profitable are now abandoned. Even
newer mines will eventually stop producing: They’ll need to be replaced
in order to maintain the world’s diamond supplies.
Another major motivation for seeking new sources is the expansion of
the global diamond market. In the early 1990s, the US was the center of
119
The town of Kolmonskop, Namibia, was once a thriving diamond mining area. The
mines were abandoned when they stopped producing enough rough to make the
operation profitable. Today, sand dunes have reclaimed the area.
Growing diamond demand helps
motivate the search for new diamond
sources.
Brian Stevenson
Modern technology and affordable labor have made it possible to cut smaller
diamonds profitably. This adds to the demand for diamonds similar to the output
shown here.
demand for diamond jewelry, with demand also expanding to other parts
of the world. This opened a whole new marketing arena to the diamond
trade and created the need for more diamonds. And, while the US market
still dominates diamond sales, international trade in diamonds continues
to increase.
120
The US is the diamond industry’s largest market, but demand is also high in other
parts of the world. Japan is one of the largest diamond jewelry markets outside the
US. This store is located in Tokyo.
Another factor is that affordable labor and new technologies are now
available for cutting smaller, lower-quality diamonds. This means that
there will be a steady demand for diamonds that at one time were consid-
ered unprofitable to cut. This trend is bound to continue as the market for
more-affordable diamond jewelry expands.
121
Gail Mooney/Corbis
Looking at the display of diamonds in a store window, most people have a hard time thinking of diamonds
as rare. But enormous amounts of time and money are spent finding and mining them. Tens of thousands
of tons of earth had to be processed to yield just the diamonds in this window.
THE EXPLORATION PROCESS

■ What factors determine the time and expense of diamond
exploration?
■ What are the different types of diamond deposits?
■ How do geologists locate diamond sources?
■ What tests determine a mine’s potential yield?
Exploring for diamonds is a long, difficult, and expensive process. In the
1990s, for example, De Beers budgeted between $70 million and $90
It takes many years and millions of
million a year exclusively for diamond exploration. And the entire process
dollars to develop a diamond mine.
from beginning a search to unearthing the first diamonds can take many
years. The first years are devoted to locating a source and determining
if there are enough diamonds of good enough quality to justify mine
construction. Then, if the decision is made to proceed, it can take several
years to build the mine and begin operations.
The Argyle mine in Australia is a good illustration of the time and
money it takes to start mining diamonds. It took eight years of exploration
and $12 million to find the lamproite source. In diamond exploration
terms, that’s not extraordinary. But then it cost an additional $420 million
over five years to develop the mine and begin diamond production.
122
The geography and climate of an area can make a big difference to

exploration geologists and dictate the methods they use. The frozen soils
of Canada and Russia are much more resistant to ground prospecting
techniques than the plains of South Africa. The hot, wet South American
climate offers challenges of its own.
The political conditions and environmental regulations of the country
in which the potential mine is located can also influence the timing of
exploration and mine construction, as well as a mine’s production limits.
Diamonds come from a variety of countries and cultures, some with
unstable governments and shaky political situations.
Environmental concerns are becoming much more important than they
were in the early days of the industry. In Canada, for example, diamond-
mining companies must include protection for local wildlife and vegetation
in their operating plans.
Exploration techniques have come a long way since the days of the
pick and shovel, but there’s still no foolproof way to spot a source that’s
guaranteed to yield a quantity of diamonds worth mining. Just because
diamonds are deposited at or near the surface doesn’t mean they’re easy
to find. As you absorb the information that follows, you’ll learn to
appreciate the knowledge, technical skill, and hard work that deliver
those glittering diamonds to the jeweler’s showcase.
Tim Atherton/PictureDesk International
Canada’s frozen tundra and vast expanses add enormous challenges to the finding and mining of
diamonds. This is a diamond exploration camp in the country’s Northwest Territories.
123
Canada’s Environmental Challenges

Canada’s Ekati mine is one of the
world’s newest diamond mines.
It’s also a good illustration of the
increasingly complex process of
establishing a modern diamond
mine. Finding economic diamond
deposits in Canada’s Northwest
Territories was difficult enough,
but it was only the first hurdle in a
long series of challenges.
The Ekati mine is located in a
remote arctic tundra region. It’s
approximately 186 miles (300
kilometers) from the closest sup-
ply center, Yellowknife, and about
124 miles (200 kilometers) south
of the Arctic Circle. On a map, the
area appears to be in the middle of
nowhere. However, a map doesn’t
convey the social, economic, and

Concern for local inhabitants is an
important part of the planning pro-
environmental complexity of min-
cess for Canadian mining projects.
ing in this remote area.

The companies must try to disturb
Several groups of aboriginal

hunting and fishing grounds as little
as possible. They also involve the
people use the area for hunting

local people in the technical and
and fishing. It’s also home to

labor aspects of the project.
many large and small mammals,

birds, and several species of fish.
The diamond deposit lies within
the migration path of a large
caribou herd.
Everyone was aware that activ-
ities associated with a modern
mining operation—explosive
charge detonation, large-scale
earth removal, heavy equipment
activity, waste material storage,
and water consumption—could
prove harmful to the ecosystem.
Before the Canadian govern-
ment would issue permits to
develop the property, the mining
company had to prove it would
This selection of rough and cut
not endanger the region’s natural

diamonds is typical of the Ekati
mine’s output.
124
Government regulations require mining companies in Canada to take special care of the environment. In
the area around the Ekati mine, many of the kimberlites are located under lakes. Before mining could
begin, the company had to dig a channel and move fish from the lake being mined to another one nearby.
resources. This meant they had to perform a lengthy and complete environmental impact
study. That study had to consider the needs of the inhabitants, the animal and plant popu-
lations, and air and water quality.
When the study was completed, the final report detailed the company’s commitment
to protect the natural environment as much as possible. It dealt with such wide-ranging
issues as water quality and sewage treatment, fish and wildlife studies, processed kim-
berlite management, reclamation and vegetation research, and protection of archeological
sites.
The mining company also entered into an agreement with the government of the
Northwest Territories. The company agreed to provide job opportunities for the residents,
while the government promised to implement programs and services to help residents
take advantage of those job opportunities.
125
primary source
alluvial deposit
Peter Johnston/GIA
Alluvial deposits form when pipes erode and their diamond rough washes down into rivers or streams.
From there, the currents might carry the rough to the ocean to form marine deposits.
PRIMARY AND SECONDARY DEPOSITS

Primary deposit—Gems found in In Assignment 4, you learned how diamonds form from carbon under
the rock that carried them to the extreme temperature and pressure conditions. After waiting deep under-
surface. ground for millions—sometimes billions—of years, they’re carried
rapidly up to the surface by kimberlite or lamproite. At the surface, they
burst through the crust and settle back into deep deposits called pipes.
Secondary deposit—Gems found
Geologists call diamonds in kimberlite or lamproite pipes primary
away from their primary source.
Alluvial deposit—A deposit where deposits.

gems are eroded from their Diamonds are also found outside their pipes, in secondary deposits.
source rock, then transported The host rock itself is not very stable. Once it reaches the earth’s sur-
face, sunlight, heat and cold, wind and rain, and other environmental
away from the source and further
forces break it down relatively quickly. When that happens it leaves a
concentrated.
diamond-bearing surface layer of broken and weathered kimberlite or
lamproite.
Marine deposit—Secondary
diamond deposit carried by
rivers or streams to the ocean When a pipe erodes, its diamonds might remain nearby, or they might
floor or shoreline. spill into neighboring rivers and streams. As they’re carried along, the
diamonds are caught in small whirlpools. Diamonds are heavy, so they
sink to the bottom. Deposits in rivers and streams are called alluvial
(uh-LOO-vee-ul) deposits. (Alluvial deposits can also exist in places—
now dry—where rivers or streams once existed.)
126
If the river currents are strong enough, they might carry diamonds all
the way to the sea. There, ocean currents deposit them offshore or wash
them back onto the beach. These are called marine deposits.
Modern diamond exploration involves
Marine deposits are usually much richer in diamonds than primary
careful planning and sophisticated
deposits. That’s because the host rock and lighter rock materials erode and
equipment.
wash away, leaving concentrations of diamonds and heavier minerals.
Some quality-sorting takes place, too: The water’s rolling and tumbling
action breaks down most of the heavily included diamonds, so only higher-
quality crystals survive.
FINDING DIAMONDS: STEP BY STEP

For at least 2,000 years, alluvials were the only diamonds known to exist.
Many of the earliest diamonds were found by accident and picked up by
hand. The oldest and most basic prospecting method—still practiced
today in many places—is to search the beds of past or present streams
and rivers.
Eventually, the study of alluvial deposits led to discovery of the pipes
associated with them. Once prospectors learned how to follow alluvial
trails, they were able to begin mining diamonds at their sources. But even
after finding primary sources, most early miners stopped digging when
they reached hard rock. They didn’t know that a great source of diamonds
lay just a little farther underground.
Today, diamond exploration methods have improved. Geologists know
more about the earth’s crust and the conditions needed to produce kimberlite
A combination of modern technology and traditional methods helps exploration geologists find diamond
deposits. This team is looking for alluvial deposits in an African riverbed using pans, buckets, and a Global
Positioning System that tracks their location using satellite technology.
127
Marine Sorting
Many years ago, De Beers
researchers conducted an
experiment to show why there
are higher percentages of gem
crystals in marine deposits than
in pipes. They filled a large
cylinder with 265 pounds of
steel balls, some gravel, water,
and natural industrial diamonds.
Then they rotated the cylinder
to simulate the tumbling that
would take place in an onshore
or tidal environment. After seven
hours the industrial diamonds
were reduced to a fine powder.
Then they repeated the
experiment with gem-quality
diamonds. After 950 hours of
John Gurney
tumbling, the gem diamonds

Rough diamonds from marine
sources—like these from Namibia—
are typically high quality. Low-quality
were still mostly whole: They
had lost only one one-hundredth
diamonds can’t survive the stresses
of one percent (0.01 percent) of

of the marine environment.
their weight!
and lamproite pipes, so the search for diamonds is more systematic—and

more rewarding. It makes use of a wide range of new technologies,
including aerial surveys, radar, electromagnetic testing, and more.
For a mine to be successful, the pro-
In spite of all this, it’s common for mining companies to locate
jected value of its diamonds must be
diamond deposits, but leave them in the ground. In fact, it’s far more
more than the cost of mining them.
common than mining them. There are fewer than 1,000 deposits of
diamond-bearing rock worldwide, but only a small percentage of them—
fewer than 10 percent—have been mined.
Economics is the basic reason for this. For a mine to be successful, the
projected value of the mine’s diamonds must be more than the cost of
mining them. That’s why it takes an enormous amount of time, work, and
expense to analyze a deposit and make a mining commitment.
To determine a mine’s potential, mining companies evaluate three
factors:
128
search pattern
magnetic
surveying
instrument
Peter Johnston/GIA
Aerial magnetic surveys can detect the possible presence of kimberlite pipes even before ground
exploration begins. To be sure they cover the area thoroughly, the team maps out a grid of back-and-forth
passes for the plane to follow.
• Size of the deposit. When it comes to diamond deposits, bigger is better: Ore grade—Concentration of
Larger pipes are likely to contain more diamonds than smaller pipes. diamond in a potentially mineable
• Concentration of rough diamonds within a pipe. This is called ore grade,
deposit.
and for diamonds, it’s reported as the number of carats per 100 tons of
surrounding material, called ore.
• Size and quality of the rough diamonds. The mining company must
estimate the average dollars-per-carat value of diamonds recovered.
Then they compare this estimate with the projected expense of estab-
lishing and operating the mine.
Exploration teams use different search methods depending on an area’s
geography, the types of deposits they expect to find, and other factors.
Most diamond exploration projects follow these general steps: deciding
where to look, narrowing the search, testing for telltale minerals, locating
pipes, and testing the pipes for diamond content.
129
The first and most important step is area selection. It’s important to focus the
DECIDING WHERE TO LOOK
search early, because diamondiferous (diamond-bearing) pipes occupy an

Diamond exploration specialists start
extremely small percentage of the earth’s crust. In Assignment 4, you learned
by looking for the oldest parts of the
earth’s crust. about cratons, the stable rock formations that make up the oldest parts of the
crust. The oldest, thickest, and most stable sections of the cratons are the
most likely locations for diamond deposits.
When scientists search for these areas, they use sensitive instruments
that use sound waves to develop images of underground rock layers and
structures. The craton is denser than the younger surrounding rock, so
when a seismic wave strikes it, the wave starts moving faster. When the
instruments detect rapid wave movement, surveyors can be pretty sure
they’ve found a craton.
After determining the presence of an underlying craton, researchers can

NARROWING THE SEARCH
narrow the search even more by combining structural, geophysical, and

geological data. They measure density variations in the area to detect kim-
berlite, which has more gravitational pull than its surrounding rock. They
look for weakness zones, or faults, that might have provided “roadways”
for kimberlite’s passage from the earth’s depths. They might also use radar
and infrared photography to create a picture of the surface.
Another modern exploration tool is remote sensing: the collection of
electromagnetic waves that are sent from aircraft and bounced off the
earth’s surface. Remote sensing detects variations in the layers of the crust
and also indicates the type of rock that’s present. The process can’t pin-
point exact pipe locations, but it can give important information about the
mineral composition of an area.
Peter Johnson Hans Westerling
Conducting an aerial magnetic survey usually involves a pilot An aerial magnetic survey map shows certain pattern variations
and a technician. These specialists, and the equipment they’re that indicate the possible presence of kimberlites. Modern
using, are expensive. They add to the high cost of diamond advances like this have assisted in the discovery of diamond
exploration and mining. deposits in previously unexplored areas.
130
Alluvial Prospecting
Secondary deposits have always
been easier to find than primary
ones. That’s because they’re
above ground and often spread
over large areas. Alluvial dia-
monds are found in lakes and
rivers, in shoreline marine
deposits, even in dried-up water-
ways. In the late twentieth cen-
tury, the focus turned to marine
deposits, which seem destined to
supply huge quantities of as-yet-
undiscovered diamonds.
Alluvial exploration makes
use of several modern methods,
including aerial photography,
satellite imaging, and radar, to
detect potential alluvial sites.
Field mapping and soil sampling
are more traditional, down-to-
earth methods. In offshore
locations, giant pumps dredge
up sediments from the ocean
bottom for testing.
Since 1960, the discovery of
major pipes in Russia, Botswana,
and Australia has decreased the
overall percentage of alluvial
diamonds in the industry. In
1960, more than 80 percent
Many alluvial prospectors still use simple
(by weight) of the world’s dia-

tools to locate diamonds. The dark “eye”
in the center of the sieved gravel con-
monds were alluvials. By 1990,
tains heavy minerals that might signal
the proportion had decreased to

the presence of diamonds.
only about 25 percent. Nevertheless, because alluvial deposits gen-

erally have higher proportions of gem-quality diamonds, they’re still
significant.
Most diamonds mined today come
from pipes.
A geophysical survey involves exploration around a target area, from

the air and on the ground. It gives an indication of the area’s terrain and
can detect a cluster of pipes. Surveys from airplanes can spot shadows and
contours that would be invisible to geologists on the ground. In Canada,
for example, an aerial explorer saw a round shadow at the bottom of a lake
that turned out to be the top of a diamond-bearing pipe.
131
Hans Westerling
Sometimes hand sorting is the only effective way to check for indicator minerals.
The human eye can detect subtle shapes and colors that an automated process
would miss.
Herbert Lang
Termite mounds, like this one in Zaire, This collection of indicator minerals from the Ekati mine in Canada told the exploration
can sometimes help in the search for company that it was close to the source pipe.
diamonds. While digging their tunnels,
the termites carry underground minerals
to the surface. Geologists examining
mounds like this have found diamond
indicator minerals in them, leading to
the discovery of diamond pipes.
To focus their search more precisely, geologists look for certain miner-
TESTING FOR TELLTALE MINERALS
als, called indicator minerals, that are usually present in and around
diamondiferous deposits. Mineral sampling is one of the most important
steps in the search for diamonds. Chemical and physical tests can determine
a mineral’s age, how far it is from its source, and how it got there. In order
to save time and money at this stage, geologists try to test as wide an area
as possible with as few samples as possible.
132
Hans Westerling
Electromagnetic surveys can be done on foot as well as from the air. This team is
surveying an area that was identified by previous tests as a possible diamond pipe
location.
Common indicator minerals in kimberlite and lamproite include red

and orange garnet, black spinel, and several others. Tiny diamonds in the
Indicator minerals—Minerals
formed together with diamonds at
samples are especially helpful because they survived for a long time in great depths and brought to the
the geological environment, and their presence indicates that the source surface by the same kimberlites
deposit is probably nearby. or lamproites.
As the search narrows, there are a couple of high-technology procedures

LOCATING PIPES
for locating pipes. Electrodes inserted into the ground can measure the
electrical resistance of the surrounding rock and define the outline of a
pipe. Aerial magnetic surveys are also helpful. Both kimberlite and
lamproite often contain magnetic minerals such as magnetite, so they’re
more magnetic than the rocks around them.
Actual ground exploration—the search for physical signs of kimberlite
or lamproite—starts after a target area is chosen. This is a difficult stage,
since kimberlites and lamproites weather easily and leave little trace of their
presence on the surface. To succeed, the geologist must use every tool
available—sampling, aerial photography, geologic mapping, geochemistry,
and just plain gut instinct and experience.
After the search for suitable geography, indicator minerals, and the presence
TESTING FOR DIAMOND CONTENT
of potentially diamondiferous host rock, geologists begin testing for the

actual presence of diamond. The testing requires increasingly larger
samples, which are more expensive and more difficult to obtain and process.
This is a critical stage that makes the difference between continuing the
exploration and abandoning a project.
133
Ground samples are bagged and care-

fully labeled to identify the region they
came from. Any diamonds or indicator
minerals in these samples will help
geologists focus their search in more
specific areas.
Both by Hans Westerling
Part of the long, difficult, and expensive process of locating diamond-bearing pipes
is ground exploration. This includes hand-screening gravels for the actual presence
of diamond.
There are three levels to sampling for diamond. The first is microdiamond
testing, which looks for the presence of tiny diamonds in the 0.2 mm to 1.0
mm range. Samples at this stage are hand sorted under a microscope.
If the results of the first stage of testing are promising, the next step is
diamond character sampling. A mining company might process up to
500 tons of earth for an indication of the sort of diamonds present. While
it won’t give an exact picture of what’s in a deposit, it will give a general
idea of diamond size, shape, clarity, and color, as well as the deposit’s
ore grade. Usually, it’s necessary to take several character samples from
Maha Tannous/GIA
one pipe.
The last stage is bulk sampling. It’s similar to character sampling, but
This group of indicator minerals and tiny
on a much larger scale. Between 5,000 tons and 10,000 tons of earth are
diamonds is an excellent sign that a
needed for processing. The samples are crushed, scrubbed, and sized.
diamond deposit is nearby.
Then, gravity sorting is used to extract the diamonds for study. Gravity
sorting involves separating lighter materials out of the test samples until
the diamonds are finally all that’s left. A parcel of about 2,000 cts. is
needed for accurate mine evaluation.
By the time the bulk sampling stage is reached, operations on site are the
same as if a small mine were functioning. In bulk sampling, as in other
stages of exploration, major decisions are based on a relatively small amount
of information. By the time they finish bulk sampling, the mining company
has made decisions that will affect the economy of an area for years to
come. For that reason, the company must be knowledgeable about local
geology and mineralogy as well as environmental and economic issues.
134
Staff geologists for a diamond mining company examine drill-core samples taken
from a kimberlite deposit. They have to study them carefully to determine if there are
enough diamonds to make mining worthwhile.
A diamond mining company analyzes thousands of tons of rock to deter-

ANALYZING A DEPOSIT
mine the contents of a newly discovered pipe. The grading process at this
Microdiamond testing—Screening
stage is very different from the grading process for finished diamonds.
for the presence of tiny diamonds
in a sample.
Unlike jewelers, miners don’t talk in terms of the Four Cs. But all four of
these quality indicators do help them decide whether or not to dig. Character sampling—Testing for
As a general rule, bigger is better. Rough stones of at least 0.50 ct. have
the size, shape, clarity, and color
a positive influence on the decision to develop the mine. Stones with better
of the diamonds in a deposit.
potential clarity and rare colors are important factors, too. But the most
important factor is their potential as finished diamonds. At this stage of
Bulk sampling—Large-scale
the process, rough diamonds are classified as either cuttable or industrial.

character sampling.
Cuttable diamonds include all those with good enough size, shape, clarity,
and color to be polished and used in jewelry. The rest are considered
Gravity sorting—Separating
heavier materials (diamonds)
industrial diamonds. They probably won’t find their way into jewelry, but from a test sample.
industry has many uses for diamond’s extreme hardness in tools, drills,
abrasives, and more. Cuttable rough—Diamond rough
According to worldwide estimates, cuttable stones can have a per-carat
with good enough size, shape,
value 100 times that of industrial diamonds. That’s why cuttability has a
clarity, and color to produce a
tremendous impact on the decision to proceed with a mining operation.

polished stone suitable for use in
jewelry.
By the time a mining company reaches this point in its evaluation of a
potential mine, it has excavated, processed, and analyzed a small mountain Industrial rough—Diamond rough
of rock. And this is just the beginning of the time and expense involved. De suitable for use in tools, drills,
Beers spent $400 million just to bring South Africa’s Venetia mine into pro- abrasives, and other industrial
duction. And, as you’ve learned, the Argyle mine in Australia took over 13 applications.
years and more than $430 million to develop and get to the production stage.
135
These rough diamonds are from a bulk sample taken from Australia’s Merlin mines
in 1995. Studying the size, number, and quality of diamonds in a bulk sample can
give a good indication of a pipe’s diamond content and economic value.
But time and money aren’t the only factors that influence the decision
to develop a mine. The deposit’s location is a key concern. A deposit that’s
close to a city or town is more economical to mine than one that’s in a
A mining company must consider a
remote location. A town can provide housing, services, and stores for
potential mine’s location, climate,
and political conditions along with its miners, as well as electricity, water, and communication lines for the mine
content. itself. For a deposit located in a remote area, the mining company has to
supply these basic services and resources.
Climate is also important. It’s more expensive to operate a mine in
Canada’s Northwest Territories or Botswana’s Kalahari desert than in the
Cape Province of South Africa, where the climate is more temperate.
The political conditions in a country are also a factor. Most mining
companies are reluctant to spend millions of dollars to develop a mine in a
country where a coup, revolution, or war would threaten their investment.
Diamond exploration might seem a long way off from your place in the
diamond industry, but what you’ve learned about it can add to your appre-
ciation of the diamonds you see every day. Exploration teams are facing
hardships and challenges all over the world to ensure that the world’s
supply of diamonds lasts well into the future.
Once a deposit is found and the exploration geologists determine that
it contains enough diamonds to be economically rewarding, the mining
technicians take over. In the next assignment, you’ll learn that mining
techniques vary widely, depending on the type of deposit. You’ll also learn
about the giant operations that exist all over the world to extract diamonds
from the ground.
136
The Snap Lake project in the Northwest Territories of Canada is a good example of how remote and
isolated most diamond mines are. The mining company has to import personnel, materials, and services
at great cost.
Peter Johnson
Extreme climate and other environmental conditions add to the expense and complexity of diamond mining.
This is the Mir mine in Siberia. It was forced to close down because of harsh conditions that made mining
dangerous and extremely expensive.
137
A Diamond Mine’s Ups and Downs

The hard work and high cost of diamond explo-
ration doesn’t always lead to a long-term, con-
stantly productive diamond mine. The Kelsey
Lake mine in Colorado is a good example.
Kelsey Lake is located northwest of Fort
Collins, Colorado, and just south of the Wyoming
border, in the US. Diamonds first hinted at their
presence there in 1975. Mineralogists from the
US Geological Survey were studying limestone
formations in the area. They knew the lime-
stone contained kimberlite, but didn’t suspect
that it contained diamonds until they started
slicing thin sections for study. The samples
damaged the carborundum wheel they were
using. The mineralogists discovered that the
kimberlite contained tiny diamonds less than
1 mm in size.
Thomas Hunn
This is one of Kelsey Lake’s treasures:
At first, large corporations supplied financing

a 28.3-ct. diamond crystal. Economics
and equipment to support the search for diamond

caused Kelsey Lake to close in 1997.
deposits. Local geologist Howard Coopersmith and

It reopened briefly, but closed again
for good in 2006.
a handful of others explored the area and, by 1977,
had unearthed several dozen tiny crystals. But it was hardly a significant yield: Most
of the crystals weighed less than 0.0025 ct., and the largest one was only 0.059 ct.
Corporate interest faded, but Coopersmith didn’t give up. In 1987, he helped form
a diamond exploration company. That same year, he discovered two diamondiferous
kimberlite pipes at Kelsey Lake. His company leased the property for further study.
By 1993, Coopersmith’s company had unearthed more than 100,000 diamonds in
the area, including some gem-quality stones of two carats or more. The first big
breakthrough came in 1994 with the discovery of a 14.2-ct. gem-quality diamond. In
December of that year, the company became a wholly owned subsidiary of
Redaurum Ltd., an international diamond mining firm.
The mine opened on June 1, 1996. In September of that year, miners unearthed
a 28.3-ct. fancy yellow diamond. A month later, an 11.75-ct. gem-quality diamond
was recovered.
In September 1996, mine owners offered the first 2,500 cts. of production, including
the 28.3-ct. stone, for sale at a closed-bid auction in Denver. By October, 1,486 carats
of Kelsey Lake diamonds had been sold, at an average of about $172 per carat. The
diamonds from Kelsey Lake were marketed under the “Colorado Diamonds” trademark
and sold exclusively by major Colorado area jewelers.
In its first year, Kelsey Lake produced about 12,000 cts. About 65 percent of the
stones were gem quality, and 25 percent weighed more than a carat. The colors
ranged from near-colorless to very dark brown.
138
Thomas Hunn
The Kelsey Lake mine in Colorado opened in 1996 after almost twenty years of exploration, then
closed in 2001. Its diamonds were marketed solely in the US.
It looked like Kelsey Lake was on its way to many years of steady production. But
Redaurum sold its mining operations to concentrate on exploration, and the mine closed
in late 1997. It remained dormant until late in the year 2000, when a Canadian company
reopened it, upgraded its processing plant, and started production again.
That was not the end of Kelsey Lake’s troubles, however. Soon after starting up
again, the owners attempted a sale of the mine. After this fell through, the company
admitted defeat and ceased operations. In 2003, following an agreement made when the
mine was in the approval stages, the owners began reclamation of the land back to its
pre-development state. The process was completed in 2006.
Kelsey Lake’s story is typical of many diamond-mining ventures. Even if everyone
knows the diamonds are there, those diamonds remain in the ground unless someone
thinks mining them is worth the tremendous investment of time and money.
139
Growing diamond demand helps motivate the Diamond exploration specialists start by looking
search for new diamond sources. for the oldest parts of the earth’s crust.
It takes many years and millions of dollars to Most diamonds mined today come from pipes.
develop a diamond mine.
A mining company must consider a potential
Modern diamond exploration involves careful mine’s location, climate, and political conditions
planning and sophisticated equipment. along with its content.
For a mine to be successful, the projected value

of its diamonds must be more than the cost of
mining them.
Key Terms
Alluvial deposit—A deposit where gems are Industrial rough—Diamond rough suitable
eroded from their source rock, then trans- for use in tools, drills, abrasives, and other
ported away from the source and further industrial applications.
concentrated.
Marine deposit—Secondary diamond
Bulk sampling—Large-scale character deposit carried by rivers or streams to the
sampling. ocean floor or shoreline.
Character sampling—Testing for the size, Microdiamond testing—Screening for the

shape, clarity, and color of the diamonds in presence of tiny diamonds in a sample.
a deposit.
Ore grade—Concentration of diamond in a
Cuttable rough—Diamond rough with good potentially mineable deposit.
enough size, shape, clarity, and color to
produce a polished stone suitable for use Primary deposit—Gems found in the rock
in jewelry. that carried them to the surface.
Gravity sorting—Separating heavier Secondary deposit—Gems found away

materials (diamonds) from a test sample. from their primary source.
Indicator minerals—Minerals formed

together with diamonds at great depths
and brought to the surface by the same
kimberlites or lamproites.
140
Diamond Mining 6
Mining Primary Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Underground Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
Extracting the Diamonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Mining Secondary Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
Alluvial Mining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
Marine Mining. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
Onshore. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Offshore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
The World’s Diamond Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Ancient Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
South America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
South Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
Africa’s Atlantic Coast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Central Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
West and East Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
Key Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
Key Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
141
• Identify the many steps and great expense it takes to establish a diamond mine.
• Define and describe the different types of diamond mines.
• Explain the methods used to extract and process rough diamonds.
• Recognize the locations and geology of the world’s major diamond sources.
142
DIAMOND M INING
Underground drilling at a mine in South Africa.
DIAMOND MINING
When you think of diamond mining, how do you picture it? For many
people, it’s an image from the movies: men covered with sweat and dirt,
toiling with picks and shovels in dark, underground tunnels. But this isn’t
an accurate image of most modern diamond mining.
Most modern diamond-mining operations are large in scale and
extremely expensive. They consist of giant excavations, hundreds of feet
deep, and they require the use of enormous hydraulic shovels and massive
earthmovers. Many diamond mines are highly mechanized, with miners
using sophisticated remote-controlled robotics—not picks and shovels—
to recover the diamond-bearing ore.
In Assignments 4 and 5, you learned how diamonds form deep in the
earth, how they reach its surface, and how exploration companies locate
them. In this assignment, you’ll learn about the mining methods required
Most modern diamond-mining
for primary and secondary deposits. You’ll learn about the various types operations are large in scale and
of mines and what it takes to establish a diamond mine. There’s also an extremely expensive.
overview of international diamond sources and some descriptions of mines
around the world.
143
The giant earthmoving truck at South Africa’s Venetia mine, which dwarfs its driver,
reflects the enormous scale of most diamond-mining projects.
You might never have to put on a hard hat and go into a diamond mine.
You might never even be asked how diamonds are formed, found, or
mined. But as a true professional, you’ll appreciate having a well-
rounded knowledge of your field—and your clients and colleagues will
appreciate it, too. You’re part of an exciting international industry that
goes so much deeper than a fashioned diamond in a showcase.
Knowledge of all aspects of the diamond and the industry it supports will
lead you to a far better understanding and appreciation of diamond’s
true value and rarity.
144
DIAMOND M INING
In an open-pit mine, levels form circular rings around an ever-deepening center. The levels are arranged in a spiral to allow
trucks to drive in and out of the central mining area. This is South Africa’s Finsch mine, which was converted to an underground
operation when the open pit reached a depth of 1,410 ft. (430 m).
MINING PRIMARY DEPOSITS

■ What is the most common method for mining a diamond pipe?
■ How are the contents of primary deposits processed?
Diamonds in a primary deposit are embedded in the kimberlite or lamproite

that brought them to the earth’s surface. The basic approach to mining a pri-
Open-pit mining—Removal of
mary deposit is to dig out and remove all the material in and around the kim-
mineral-bearing ore from a large
surface excavation.
berlite or lamproite pipe. This is usually accomplished by open-pit mining.
145
Heavy equipment removes layers of overburden before mining can begin. This is the
Argyle mine in Australia, a lamproite deposit.
©Bill Bachman
Blasting with low-velocity charges helps loosen the ore without damaging its
diamonds. The loosened material is loaded into ore trucks for processing.
The digging of an open-pit mine usually begins with the removal of

layers of overburden—sand, gravel, or rock—that cover the pipe. Miners
Overburden—Sand, gravel, or
remove the overburden and process it for any diamonds it might contain.
rock that covers a diamond pipe.
Then they drill holes into the pipe, insert explosives into the holes, and
blast the ore loose. (They use low-velocity charges to avoid shattering the
diamonds.) Then they remove the loosened material with hydraulic shovels
and large ore trucks.
As an open-pit mine develops, it forms a deepening cone that follows
146
DIAMOND M INING
A Precious Resource
What’s crystal clear, highly
valuable, and found in small
quantities in the African desert?
No, not just diamonds. Water is
almost as precious as diamonds
in the arid deserts of southern
Africa.
Water is essential for survival
in this hot, dry environment. It’s
also a vital element in diamond
processing. The Venetia mine,
for example, annually consumes
approximately 16 trillion gallons
(about 6 million cubic meters) in
its diamond production. That’s
enough water to fill more than
16,500 Olympic-size swimming
pools!
The need for water poses
considerable problems in an
Water is vital to a diamond-mining operation. But it’s not just
area that only receives 15 in.

essential for the health and survival of the mineworkers. It’s
also an important part of the processing system.
(38 cm) of average annual
rainfall. Drought years make the problem worse. Realizing this potential roadblock to
establishing a mine at Venetia, De Beers conducted a 10-year study of water resources
in the area.
Once they located a water source, De Beers established a partnership with local
government agencies to explore the possibility of using the water. This launched a
three-year investigation by a team of environmental and engineering experts into the
potential impact to the local animal, plant, and human populations caused by the
mine’s water requirements.
After almost 13 years of investigation into water and other environmental and
economic concerns, Venetia finally began operating in 1991.
the contours of the diamond pipe. The sides are terraced to provide a road-
way around the mine’s perimeter for the ore trucks that remove material
from the pit. The trucks carry the rock to the processing facility where the
diamonds are separated and recovered from the ore.
The depth of an open-pit mine depends on the characteristics of the pipe
and the economics of the mining operation. As a pipe’s depth increases, it
gets narrower and the quantity of diamonds decreases. And the deeper the
pit, the more expensive it becomes to excavate and transport the rock.
147
open pit
vertical
shaft
drifts
unmined
kimberlite
Peter Johnston/GIA
Block caving is an underground mining technique that begins with the digging
of vertical shafts and horizontal, concrete-lined drifts. The ore above each drift
is loosened by explosives. The ore falls through openings in the liner, then it’s
crushed and transported to the processing plant.
UNDERGROUND MINING
An open-pit mine eventually reaches a depth where it’s no longer
economical to excavate and remove all the material and rock from the
pipe. If there are still diamonds in the pipe worth retrieving, the mining
operation goes underground. The Finsch mine in South Africa was an
open-pit mine down to about 1,410 ft. (430 m), then it was converted to
an underground mine.
148
DIAMOND M INING
An underground mine consists of a series of vertical shafts and hori- Drift—A horizontal tunnel drilled
zontal tunnels in and around the pipe. The shafts are drilled in the stable through a diamond pipe.
rock near the pipe to provide access for personnel, equipment, supplies,
and ventilation. Then, horizontal tunnels called drifts are drilled from the Block caving—Underground
shafts through the pipe to extract the kimberlite or lamproite. mining that involves building a
An older underground mining technique called chambering involves a
concrete-lined tunnel under an
series of parallel horizontal drifts at equally spaced vertical levels. After

ore deposit, then collecting the
the material is removed from each drift, the ceiling is blasted to collapse
ore through openings in the liner.
the rock above. Miners move downward each time a tunnel is collapsed
and remove the kimberlite ore at each level. But chambering is expensive
Recovery—Any method used to
separate diamonds from ore or
and dangerous for miners, so it’s no longer used very often. alluvial sediments.
Today, block caving is a more common underground mining method.
Block caving is a safer version of chambering. It’s also more mechanized,
Primary crushing—Reduction of
so it requires a smaller workforce. In block caving, the horizontal tunnels
newly mined ore to a manageable
are lined with concrete. Each tunnel is placed directly under a large
size.
section of ore. Openings are made at regular intervals in the top of the
concrete lining. Holes are drilled into the kimberlite at these openings.
Scrubber—An apparatus that
Explosive charges loosen the kimberlite above the openings, and the
washes away dirt and clay from
loosened kimberlite falls through at each opening.

diamond-bearing ore.
After the broken ore falls through the openings, miners use heavy Dense media separation—A
equipment to scrape it out of the tunnel. They load the ore into cars on an
recovery process that separates
electric train that dumps it into an underground crusher. From the crusher,
diamonds from lighter material.
a conveyor system carries it to buckets that take the ore up the vertical
shaft for further processing.
EXTRACTING THE DIAMONDS

Once the kimberlite or lamproite ore is excavated from the mine, it goes
through a diamond-extraction process called recovery.
The ore starts out in fairly large chunks that must be reduced in size to
make them easier to manage. This is accomplished in a series of crushing
and scrubbing operations.
First, primary crushing reduces the ore to a specific size. In under-
ground operations, it’s reduced to about 6 in. (152 mm) for easier removal
from the tunnels. For aboveground operations, it’s usually reduced to
about 2 in. (51 mm).
The interface between the diamonds and the kimberlite ore is weak, so
crushing easily releases the diamonds. Unfortunately, crushing limits the
maximum size of rock or diamond that will survive. This means that a
rough diamond that exceeds those limits might be destroyed if it isn’t
detected first. Most mines have detection systems that stop the conveyors
automatically before any large diamonds pass through the crushers.
From the primary crushing plant, the ore goes to a machine called a
scrubber that removes dirt and particles of clay. The ore then passes over
a screen with 1-in. (25-mm) holes. Material larger than the screen’s holes
goes to another crushing plant to further reduce its size. Smaller sizes fall
through and move to the next step: dense media separation.
149
The processing plant at the Finsch mine is where diamonds are extracted from the ore. Each section of the plant reflects a
different step in the extraction process. As the ore passes through the system, the balance between ore and diamond content
changes until only the diamonds remain.
light materials ore
dense materials
©Bill Bachman Peter Johnston/GIA
Crushing is the first part of the extraction In dense media separation, the ore is mixed with a liquid and fed into a cone-shaped
process. This crusher—at the Argyle container. The container spins the mixture, and the lighter materials spin out while
mine—breaks the ore into smaller sizes diamonds and heavier materials fall to the bottom for removal.
for easier handling and liberates the
diamonds from the matrix.
150
DIAMOND M INING
Diamonds stick to grease: That’s the principle behind grease-belt technology. As

water washes the ore over the grease belt, diamonds remain embedded in the
grease. At the end of the process, the belt is scraped clean and the grease is
melted away, leaving the diamonds for collection.
Dense media separation (also known as heavy media separation) Grease belt—An apparatus
separates the diamond-bearing ore from the lighter waste materials. The that uses diamonds’ affinity for
crushed and scrubbed ore is mixed with a liquid and fed into a cone- grease to separate them from
shaped container called a cyclone. The cyclone spins the mixture, forcing other minerals.
the liquid and diamond-bearing material to the bottom of the container.
Rotating dryers then evaporate the liquid, leaving the solid material. The X-ray separation—A recovery
diamonds are finally separated from the remaining waste rock and heavy method that uses X-rays to detect
minerals using a grease belt or X-ray separation.
diamonds and an air jet to remove
The grease belt evolved from the grease table, which was invented in
them from ore.
the late 1800s. The grease belt is more common today. As you learned in
Diamond Essentials, diamond adheres to grease and oils. Diamonds stick
to the grease on the belt, and the remaining minerals are washed away by
the water that flows constantly over its surface. The diamond-studded
grease is then scraped off at the end of the belt and the diamonds are
removed from the grease.
In 1958, Soviet scientists invented the X-ray separation process for
recovering diamonds. This process is based on the fact that diamonds
almost always fluoresce (emit visible light) when they’re exposed to X-rays.
As a thin stream of ore passes in front of an intense X-ray beam, the
fluorescent light emitted by a diamond crystal triggers a jet of air that
blows the stone away from the ore and into a collector bin.
151
feed hopper
diamond concentrate
X-ray source
feed belt
vibrator
detector
air jet
ejector control unit diamond
waste bin
collector bin
Peter Johnston/GIA
Almost all diamonds fluoresce when they’re exposed to X-rays. As the ore passes the X-ray beam, the
diamonds fluoresce. The fluorescence triggers a jet of air that pushes them away from the stream of ore
and into a collector bin.
Material recovered from either separation process—grease belt or

X-ray—contains a high proportion of diamonds. But it still contains other
minerals, too, so the diamonds must finally be sorted by hand.
152
DIAMOND M INING
MINING SECONDARY DEPOSITS

■ What caused a shift in emphasis from secondary to primary mining?
■ What are the special challenges of mining diamonds from ocean
deposits?
When a diamond-bearing kimberlite or lamproite pipe reaches the earth’s

surface, it’s exposed to wind, rain, heat, and cold. Weathering and erosion
release the diamonds from the host rock and scatter them. The rough
diamonds are often carried away from primary deposits by floods or
nearby streams or rivers.
As you learned in Assignment 5, there are two types of secondary
deposits: alluvial and marine. Alluvial deposits are found in or near
riverbeds or streams. Even if the river or stream dries up and disappears,
the diamonds might remain in place for millions of years.
Newer alluvial deposits lie in loose sand and gravel in active riverbeds
or along their banks. Older deposits often fill potholes and other depressions
that were carved out of the riverbed by flowing water.
Marine deposits are found in the sand on beaches or in offshore tidal
zones. As you’ll learn, recovering diamonds from marine deposits requires
highly advanced mining methods.
ALLUVIAL MINING
People have recovered diamonds from alluvial deposits for more than
2,000 years. Even after the discovery of diamond-bearing pipes in South
Africa, alluvial deposits continued to dominate total world diamond
Improved technology caused a shift
production for decades. In 1960, more than 80 percent (by weight) of
in emphasis from alluvial to primary
diamonds were recovered from alluvial deposits. diamond mining.
Times—and technologies—have changed, though. Alluvial mining is
still important, but by the early 1990s, it accounted for only about 25 per-
cent of diamond production. This shift from secondary to primary
deposits is due primarily to the improved technologies used to locate and
mine diamond-bearing pipes.
Early alluvial miners adopted their techniques from gold miners. In
fact, many veterans of the original California gold rush of 1849 made their
way to Africa when word spread about the discovery of diamonds. The
key tools of these “forty-niners,” as the California gold miners were
known, became the tools of the diamond miners as well: picks, shovels,
sieves, and wide, shallow pans. These tools are still the primary tools of
the alluvial diamond miner.
Working alone or in groups, miners move up and down rivers and
streams. They sift through gravel they collect along the water’s edge or
from the riverbed. Then they swirl the gravel in a pan with a little water.
Because diamonds are heavier than most of the minerals found in stream
gravel, they tend to sink to the bottom of the pan. Lighter material washes
over the edge with the water.
153
Yann Arthus-Bertrand/Corbis
In some places, alluvial deposits are still mined by methods used for more than 2,000 years. These workers on Africa’s Ivory
Coast are using pans to separate diamonds from lighter ore materials.
Miners also wash river gravel in large baskets and circular sieves.
Twirling the sieves allows the smaller grains to escape while the mesh
traps larger, heavier stones. The miners then pick through the remaining
material by hand.
Not all alluvial mining is small in scale. In larger operations, recovery
and sieving are mechanized. In some cases, miners use large earth-
moving equipment to transport the diamond-bearing earth to the processing
plant.
Crushing isn’t usually part of the recovery process for this type of
mining. Instead, a series of sieves separates the diamonds from the sur-
rounding waste material before they’re loaded into the washing pan.
Final processing can include a grease belt or just a carpeted table where
the diamonds are handpicked from the remaining material.
154
DIAMOND M INING
Alluvial mining isn’t always a small operation. This operation on the African coast uses a giant dredge and floating treatment plant.
MARINE MINING
Marine deposits result when diamond-bearing kimberlite pipes erode,
releasing their diamonds. Flowing rivers then carry the diamonds to the
coast.
Namibia holds perhaps the largest
Namibia, on the western coast of southern Africa, holds vast deposits of
marine diamond deposits in the world.
gem-quality diamonds—possibly the largest marine deposits in the world.
Scientists estimate that more than a billion carats survived the journey to
the sea from the continent’s interior. And any fractured stones that survived
the trip were quickly broken apart by the waves along the shoreline. As a
result, about 90 to 95 percent of Namibia’s diamonds are gem quality.
Three factors affect marine diamond distribution on the Namibian coast.
First, over the last 100 million years, the sea level has fluctuated from more
than 1,600 ft. (500 m) below present levels to more than 980 ft. (300 m)
155
When some of South Africa’s diamond pipes eroded, their diamonds were carried by rivers to the country’s western coastline.
Some marine diamond deposits are shallow enough to be explored by divers.
above them. This means that diamonds have been deposited at several
different elevations above and below current sea level.
The second factor is the ocean currents that push the sand when it
reaches the coast. On this particular coast, the currents push the sand—
along with any diamonds that have reached the sea from the inland
waterways—northward. At the same time, the currents form a “wall” that
prevents the diamonds from being pushed farther out to sea.
Third is the size of the diamonds. Smaller stones weigh less, so they
can remain suspended in the water to be carried farther than larger ones.
Near the mouths of major rivers, the average stone size is relatively large.
At sites farther north, stone sizes are smaller. At the mouth of the Orange
River, for example, the average diamond size is 1.50 cts. But 125 mi. (200
km) north, the average diamond size is 0.10 to 0.20 ct.
Marine deposits are distributed over large areas that often have varied
terrain, so mining companies use a variety of methods to mine them.
These include modified alluvial mining, shallow-water mining using
divers, and deep-sea operations involving sophisticated high-tech ships.
156
DIAMOND M INING
The mining of Namibia’s onshore deposits rates as one of the Some onshore mining operations use tremendous vacuums
world’s largest earth-moving projects. Giant dams hold the sea to siphon loosened diamond-bearing ore out of cracks and
back and allow processing of the deposits in the exposed crevasses in the bedrock for transport directly to the
seabed. processing plant.
Namibian onshore mining qualifies as one of the world’s largest earth-

ONSHORE
moving operations. It resembles a large-scale alluvial operation, with two

exceptions. First, miners build large earthen dams in the surf zone to hold
back the sea. This leaves the seabed exposed, often as much as 65 ft. (20 m)
below sea level. With the water held back, the diamonds are easier to recover.
The second exception is that the pounding action of the surf can force
diamonds into small cracks and crevices along the shoreline. Dislodging
and removing these diamonds often requires special tools and procedures.
Large earthmovers excavate and remove the sand and gravel for
processing. Workers with brooms and other tools then sweep out every
crevice where diamonds might be hidden in the irregular, pockmarked
bedrock. Sometimes they use compressed air jets to dislodge diamonds
trapped in small crevices.
Some mining operations use mammoth vacuums mounted on 10-ton
trailers that follow the earth-moving equipment. The material picked up by
the vacuums goes into a pipe for direct transport to the processing plant.
This automated process makes diamond recovery secure and efficient.
157
As difficult as it is to mine Namibia’s onshore diamond deposits, the task

OFFSHORE
of recovering diamonds from the ocean floor is even more of a challenge.

One observer remarked that it’s like randomly scattering a 2-lb. (900 g)
bag of sugar over two adjacent football fields, and then trying to retrieve
the sugar with a small vacuum cleaner on a dark night.
Even so, the balance has shifted in recent years with the depletion of
onshore supplies. In 2006, the Ministry of Mines and Energy reported that
the majority of production was moving from the shoreline to the seabed.
Offshore deposits are divided into two zones based on the depth of the
water. Deposits in water less than 50 ft. (15 m) deep can be mined by
divers, usually without sophisticated equipment. In deeper water, the
mining operation becomes more complex.
Divers in shallow-water mining operations use a hose attached to a
suction pump that’s located on shore or in a boat. A diver vacuums gravel off
the ocean floor. Gravel from the pump is sieved and the remaining material
is sent to a plant for processing. Because the surf constantly moves sand
and gravel along the coast, creating possible new diamond deposits, divers
regularly return to explore areas that have produced diamonds in the past.
The search for diamonds in deeper water begins with detailed mapping
of the ocean floor. Mining companies use sophisticated equipment like
sonar, along with data from global positioning satellites, to develop
remarkably accurate maps of the undersea floor. These maps can identify
the most likely areas to look for diamond deposits, such as gullies, basins,
and ridges.
In shallow-water mining, a diver uses a vacuum to pump gravel from the ocean floor.
The gravel is then sieved and sent to a processing plant.
158
DIAMOND M INING
Large recovery ships like this one are used to support deep-sea mining operations. Helicopters carry
personnel and equipment from the ship to land-based headquarters.
Divers wearing special heated diving suits work down to depths of

about 130 ft. (40 m). They use powerful vacuums to pick up material
off the ocean floor. Even with their special suits, divers can only work
at those depths for short periods. To improve efficiency and reduce the
risk, some mining companies have developed automated crawlers
equipped with suction devices that vacuum material from the ocean
bottom.
For deposits at even greater depths, mining companies use large

recovery ships. Each vessel is a self-contained unit and can operate
under a variety of seafloor conditions. De Beers Marine (DBM), a De Beers Sometimes the human eye makes up
subsidiary, operates a fleet of these ships off the coasts of South Africa
for the failings of machines. The man
and Namibia. They operate 24 hours a day, in depths up to 650 ft. (200 m),
holding the 53.90-ct. rough crystal
in some of the most treacherous waters on earth.

retrieved it after it had been screened
out with other oversized gravels. If he
DBM pioneered the development of both horizontal and vertical mining

hadn’t spotted it, the giant beauty would
have been dumped overboard with the
equipment. The horizontal system is equipped with a robotic crawler that
oversized waste.
can recover diamonds where there is little sediment covering the deposit.
The crawler uses suction to excavate gravel as it moves along the sea
floor. It then delivers diamond-bearing gravel through flexible hoses
connected to the ship.
159
Some deep-sea mining operations use robotic crawlers that dig trenches along the
sea floor and pump the loosened materials to a ship for processing (left). The ship
carries the crawler to the deep-sea site, where it’s lowered into the ocean from a
special platform (above).
DBM’s vertical system can drill through thick sediment to reach the
deposits. It extends a large-diameter circular drill down to the sea floor.
This apparatus drills in an overlapping pattern in the designated area.
Each state-of-the-art mining vessel is equipped with its own sophisticated
processing and recovery plant. After the gravel is processed, undersized and
oversized material is returned to the sea. The remaining material is processed
by dense media separation, then by X-ray sorting. The processed materials
are sealed in secure containers and sent to shore for final sorting.
Namibian Minerals Corporation (Namco) was another deep-sea mining
operation. The company developed sophisticated robotic crawlers to
scour the ocean floor for diamonds. One of these, the NamSSol I, was a
120-ton machine that dug a trench as it moved along the sea floor. Its
suction head had a ripping tool that cracked and loosened the hardened
sediment. It also had high-powered water jets to flush diamonds out of
crevices and gullies in the seabed. The dislodged material was sent to the
vessel for filtration and processing in a fully automated system.
The NamSSol I was designed to run 20 hours a day and cover over
100,000 square feet (9,290 square meters), processing up to 50 tons of
material an hour. Unfortunately, Namco ran into financial difficulties and
other marine mining concerns acquired its equipment in 2002.
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DIAMOND M INING
THE WORLD’S DIAMOND SOURCES Ke y C o n c e p t s

■ How is a mine’s diamond production measured? Potentially profitable diamond
sources are rare.
■ How did the earth’s ancient geography affect diamond
source locations?
■ Where are the world’s major primary sources?
■ Where does alluvial mining still take place?
Improvements in exploration technology have made it clear that diamonds

are much more widely distributed than people once thought. Diamonds
have been found in every part of the world except Antarctica, but not
always in commercially important quantities and qualities. One or two
diamonds—or even a few thousand—can’t offer enough reward for the
time and expense it takes to begin mining.
There are two ways to measure a mine’s production: by carats per
hundred metric tons, often stated as cpht, and by the value of the diamond
Carats per hundred metric tons
(cpht)—Measure of a mine’s
rough produced. Cpht is simply a measure of the mine’s productivity, or productivity based on the carat
grade, based on the weight of diamonds produced from a standard volume weight of the rough diamonds it
of ore. This can vary widely by mine and can change over a mine’s history. produces per 100 metric tons
Many major mines, including South Africa’s Finsch and Cullinan, and
of ore.
Botswana’s Orapa, recover up to 100 cpht, while Australia’s Argyle and
Canada’s Diavik mines recover over 300 cpht.
As you’ve learned, natural diamond rough represents a wide range of
values. Just like polished diamonds, professionals grade rough by color,
clarity, and size. However, a rough diamond’s shape and suitability for cut-
ting marketable sizes of polished gems is possibly the most important con-
sideration. (You’ll learn more about the relationship between rough quality
and finished diamonds in Assignments 7 and 9.)
The Argyle mine’s high grade is offset by the small size and lower per-
carat value (less than $20 per carat) of the majority of the diamonds it
produces. On the other end of the scale, Lesotho’s Letšeng mine has a very
low grade (less than 2 cpht) but very high value (often more than US$2,000
per carat) for the few very large diamonds it produces on an infrequent but
regular basis.
Only a very limited combination of events leads to a profitable
diamond mine. The diamonds must form in the mantle, they must be in
the right location to be brought to the surface, they must survive the heat
and pressure of transport, and they must remain in a location where
they’ll be discovered. Once discovered, there must be enough of them
to support a mining enterprise for many years. Because this combina-
tion of conditions is so specific, potentially profitable diamond sources
are rare.
Tino Hammid ©2003
In the world of diamonds, a gem like

In practice, the potential gem value of a mine’s diamonds and its cpht
this one—106 cts., D-color, VVS1 clarity—
are two important factors that help determine its ongoing viability as a
is extremely rare. By far, the largest
producer.
percentage of diamond production
consists of smaller, lower-quality stones.
161
Ke y C o n c e p t s ANCIENT CONNECTIONS
India was the world’s only major Diamond deposits vary in age and in the degree of erosion to which
they’ve been subjected. As a result, some are mainly secondary, some are
mainly primary, and others are a combination of both.
diamond source until the eighteenth
century.
As you learned in Assignment 5, Earth was a very different place
about 230 million years ago. The continents were joined together in a
supercontinent called Pangaea. It covered about half the planet, and was
surrounded on all sides by ocean. Eighty million years later, Pangaea had
separated into two landmasses. Twentieth-century scientists labeled the
northern one Laurasia, the southern one Gondwanaland.
Over millions of years, the two landmasses continued to move apart.
Gondwanaland broke up into South America, Africa, India, Australia, and
Antarctica. Laurasia became North America, Europe, and Asia (except
India). Slowly, the east and west portions separated and the Atlantic
Ocean took shape between them.
Because of this ancient connection, geologists comparing North and
South America with the continents across the Atlantic Ocean discovered
similar kinds of rocks and geologic structures. To diamond explorers, it
means that the diamond fields in Africa were once connected to the dia-
mond fields in Brazil. And up north, the recent Canadian finds are mirrored
in deposits in northern Russia. Keeping these ancient connections in mind
will help you as you learn where diamonds are found and mined today.
ASIA
One of the oldest texts to mention diamonds was an Indian tax-code
manuscript from the fourth century BC. India was the country that first
supplied the world with diamonds, and the only significant diamond
source until the eighteenth century. India’s diamonds were almost all allu-
vial until the 1900s, when a few primary sources were discovered.
Today, India produces a small percentage of the world’s diamonds. One
pipe, a lamproite, still produces diamonds, but its yield amounts to fewer
than 20,000 cts. annually. In the late 1900s, the country’s diamond industry
turned its attention away from mining. It’s now known as a center of
diamond manufacturing.
The People’s Republic of China became a diamond source when
alluvial diamonds were discovered there in the 1940s. The Dingjigang
mine was a major alluvial source from the mid-1960s to the mid-1980s.
Damage to neighboring farmlands forced the large-scale mining operation
to stop. However, local farmers still mine the diamonds on a small scale.
China’s first kimberlite source—the Mengyin—was discovered in
1966 after four years of exploration. It started as an open-pit operation in
the 1970s. In 1999, the mine operators began developing it for under-
ground mining. The Wafangdian mine in Northern China is an open-pit
The Shah diamond was unearthed in
mine that began producing diamonds in the early 1990s. The diamonds
India in the sixteenth century. At the
time, diamonds were left in mostly
produced by China’s diamond mines are relatively small, and most of
rough form: polished but not faceted.
them remain in China for domestic gem cutters or industrial uses.

The Persian inscription, dated 1591,
names its owners.
162
DIAMOND M INING
India was the country that first supplied the world with diamonds. This fortress at Golconda is a reminder
of the early alluvial mining and trading that took place there. Its diamonds were known for their exceptional
transparency and lack of color.
This building houses a giant dredge that collects sediment and filters out its diamond content. It’s part of
an alluvial operation in Indonesia.
Diamonds from other parts of Asia are almost completely alluvial. The
residents of the island of Borneo, now Indonesia’s Kalimantan Province
(the name means “river of diamonds”), have been harvesting alluvial
diamonds from its streams, rivers, and rice fields for at least 700 years.
163
The World’s
Diamond
Deposits
For centuries, India was the
world’s only source of diamonds.
Then Brazil’s alluvial deposits
were discovered in the 1700s.
But both countries were over-
shadowed by South Africa’s
CANADA
enormous primary deposits,
which appeared in the late
1800s. Today, because of
advances in exploration tech-
nology, diamond deposits are
no longer limited to one or two UNITED STATES
places.
New diamond sources came to
light in the late 1900s. Canada
yielded some especially promising
discoveries. These developments
VENEZUELA
indicate that the world’s supply of
GUYANA
diamonds will satisfy consumer
hunger for many decades to
come.
BRAZIL
DIAMOND DEPOSITS
(size denotes importance)
Peter Johnston/GIA
164
DIAMOND M INING
RUSSIA
NORTHWEST
RUSSIA
CHINA
INDIA
GUINEA
GHANA
DEM. REP.
SIERRA INDONESIA
OF THE
LEONE
CONGO
TANZANIA
ANGOLA
BOTSWANA
NAMIBIA
AUSTRALIA
LESOTHO
SOUTH AFRICA
165
Patricia Maddison
A hydraulic cannon uses water power to loosen sediment at an alluvial mine in northern Brazil. The
sediment can then be processed for possible diamond content.
166
DIAMOND M INING
SOUTH AMERICA Ke y C o n c e p t s
About 1730, Brazil replaced India as the world’s main source of diamonds. While some of Brazil’s production is
It kept that position until 1870, when production started in South Africa. now from kimberlite pipes, the
Because Brazil is a country with a wet, tropical climate, centuries of water
erosion uncovered most of its diamond pipes and washed away their
majority of its diamond deposits are
surface indications. As a result, until very recently Brazil’s diamond
still alluvial.
supply was exclusively alluvial. In 2013, production began at the country’s
first commercially viable kimberlite pipe—the Lipari mine in the state Africa has the world’s most diverse
of Bahia. diamond sources.
Other parts of South America, like Venezuela and Guyana, also yield
all alluvial diamonds. Mining began in the early 1900s, but advances in
mining technology made the 1990s the most productive years. Most of the
yield from both locations has been industrial grade, with a few notable
exceptions. In 1942, for example, Venezuelan miners unearthed a 154-ct.
diamond, which they called El Liberdador. Other gem-quality diamonds
from Venezuela include a rainbow of fancy colors: pinks, blues, greens,
and even some black diamonds.
AFRICA
The African continent has a wide range of geographic features—mountains,
plains, deserts, rain forests, and seashore. Underlying it all are several
cratons, the oldest and most potentially diamondiferous of geologic
structures. It’s no wonder Africa has the most diverse diamond sources. Its
enormous pipes are legendary in the diamond industry. Its alluvial supplies
are plentiful. And its marine deposits are abundant and hold great promise
for the future.
SOUTH AFRICA
Diamonds were first discovered in South Africa in the late 1800s. At first,
all South African diamonds came from alluvial sources. But once
prospectors unearthed the first major diamond pipes, primary sources
joined the secondary ones. While the country no longer leads the world in
diamond production, it’s still a very important source.
The first deposits, discovered between 1869 and 1871, were clustered
around the town of Kimberley. As you learned in Assignment 2, the mines
that resulted formed the basis of De Beers Consolidated Mines Ltd., and
marked the birth of the modern diamond industry.
Those early South African mines produced about 2 to 3 million carats
a year—about 95 percent of total world production—from 1872 to 1903.
Amazingly, four of those first mines are still operating, although their
supplies are dwindling. Today, their combined total is only about 0.7 percent
of world production.
Currently, production in South Africa is almost 90 percent from kimber-
lite pipes. Three of the most important are Cullinan, called Premier when
it was established in 1903; Finsch, established in the mid-1960s; and
Venetia, established in 1991.
167
The Kimberley mines of South Africa began producing diamonds in the 1870s and soon became the world’s major diamond
source. Workers were transported in and out of deep pits using precarious cable systems (left). An overview of the network of
pits and pathways shows how dangerous and crowded those early operations were (right).
The Cullinan mine is a major underground mining operation. Giant 6-ton load haul dumpers move ore from the mine tunnels for
processing.
168
DIAMOND M INING
Jagersfontein
Jagersfontein (yay-gers-fun-
TAYN) was one of the first dia-
mond pipes to be unearthed in
South Africa. In the summer of
1870, prospectors had already
unearthed two giant kimberlite
pipes in the nearby town of
Kimberley.
One day, the overseer on the
Jagersfontein farm—a man
named de Klerk—found a 50-ct.
diamond in a dry creekbed. The
news spread rapidly and
prospectors flocked to the farm
and its surrounding areas.
The first Jagersfontein dia-
monds were found among
Harold & Erica Van Pelt
boulders at the bottom of a

The Excelsior I, at 69.68 cts., was
stream, so early prospectors

cut from rough that weighed 995.20
cts. It was one of the most famous
thought they’d discovered a
products of the Jagersfontein mine.
totally alluvial source. They

The mine, now closed, was known
never suspected that the mine

for producing many high-quality gem
diamonds like this one.
would eventually reach a depth
of 2,515 ft. (762 m).
Jagersfontein diamonds were generally of very high quality: color-
less with dazzling blue fluorescence. In fact, an old term for such
stones, “jagers,” was based on the name of the mine that produced so
many of them. One of the mine’s most famous rough diamonds was
the 995.20-ct. Excelsior.
Jagersfontein ceased operations in May 1971. By then, with a
yield of fewer than 10 carats per 100 tons of kimberlite, the extra-
ordinary depth made it too difficult and expensive to continue.
The Cullinan mine has produced hundreds of diamonds weighing 100 Ke y C o n c e p t s

carats or more: One quarter of all diamonds over 400 carats came from
this deposit. It’s also known for producing some rare and valuable blue
The Cullinan mine is known for
diamonds.
producing blue diamonds as well as
The mine gained international fame in 1905 when the world’s largest
very large diamonds.
rough diamond—the Cullinan—was discovered. Named after the mine’s
owner, this giant rough weighed 3,106 cts. The Cullinan Diamond retains
169
Tino Hammid
This Edwardian brooch features two blue pear-shaped diamonds. The Cullinan mine
is famous for producing beautiful blue diamonds like these.
The Royal Collection © 2003 Her Majesty Queen Elizabeth II
The Cullinan I serves as the centerpiece of this scepter from the British Crown
Jewels. It was one of several stones cut from the original 3,106-ct. rough, which
came from what was then called the Premier mine.
170
DIAMOND M INING
The dense media separation plant at the Finsch mine contains state-of-the-art machinery. These screens and crushers aid in the
separation of diamonds from the ore.
the title as the largest gem diamond ever found. A 599-ct. rough crystal
found there in 1986 was fashioned into the 273.85-ct. Centenary Diamond,
named to commemorate De Beers’ 100 th anniversary.
The Finsch is the most technologi-
As you learned earlier, the Finsch mine was worked as an open-pit site
cally advanced underground mine in
until 1990 when it was converted to an underground operation. It holds the
the world.
distinction of being the most technologically advanced underground mine
in the world. It features state-of-the-art automated and remote-controlled
ore handling, transportation, and rock crushing systems.
Venetia is South Africa’s newest and perhaps most significant mine.
Discovered in the mid-1970s, it went into production in 1991. The
Venetia produces between 4 and 5 million carats of diamond annually,
about 40 percent gem quality. The total volume of diamonds and the high
percentage of gem-quality stones rank the Venetia as one of the top
mines in the world.
The Letšeng mine in Lesotho—a small landlocked nation completely
surrounded by South Africa—is unique because it has produced some of
the world’s largest and highest-value diamonds, including the 603-ct.
Lesotho Promise and the 550-ct. Letšeng Star, from a relatively small
volume of kimberlite ore.
171
John T. Williamson
John Thorburn Williamson
(1907-1958) is known for his
long search and eventual discov-
ery of the giant diamond pipe at
Mwadui in Tanganyika (now
Tanzania). This adventurer,
geologist, and fortune hunter
was born in Canada, but he
made history in eastern Africa.
After a few alluvial diamonds
were found in the area near
Lake Victoria, Williamson was
convinced there was a pipe near-
by. He started searching in 1936,
and crisscrossed the surrounding
countryside many times. In
1940, his determination paid
off near the small village of
Peter Johnston/GIA
Mwadui.
John T. Williamson’s skill and determi-
nation led to the discovery of a giant
There, he discovered the pipe

diamond mine in Tanzania.
that became the Williamson Mine. It was the largest in the world,
with more than 360 acres (1.45 sq. km) of surface area. It has yielded
more than 13 million carats of diamonds, including many with a rare
pink hue.
One of those pinks, found in 1947, weighed 54 cts. in its rough
form. Named the Williamson Pink, it was polished into a 23.60-ct.
round brilliant. Williamson presented it to Princess Elizabeth (now
Elizabeth II) of England as a wedding gift.
For 17 years, Dr. Williamson ran the mine as his own personal
kingdom. He built up the town of Mwadui to house the mine’s
several thousand employees. In 1958, at age 50, Williamson died of
throat cancer. Soon after that, Tanganyika (which had been a British
colony) gained its independence and merged with Zanzibar to
become Tanzania, an independent state.
Production declined over the following years, and the Williamson
mine fell into disrepair and was shut down in 1994. In 1997, De
Beers and Tanzania reached an agreement to reopen and refurbish
Cartier designed this floral brooch for the mine.
In 2009, independent producer Petra Diamonds—also the operator
Queen Elizabeth II. Its center stone is
of the Cullinan, Finsch, Koffiefontein, and three of the older

the 23.60-ct. Williamson Pink.
Kimberley mines—took over the Williamson. Petra plans to work

the mine until at least 2033.
172
DIAMOND M INING
Anthony Bannister
The diamond-bearing coast of Namibia boasts the world’s largest privately-owned fleet of earth-moving equipment. A large
percentage of the diamonds mined from these beaches are gem quality.
AFRICA’S ATLANTIC COAST
One of the world’s most important marine deposits lies along the
Atlantic coast of Africa, in the country of Namibia. Mining of marine
diamonds started there in 1909, when it was still known as German
Southwest Africa.
There are no diamond-bearing pipes near the shore, so geologists
believe that the diamonds came from the kimberlites in South Africa’s
interior. As the kimberlites eroded over the past 100 million years, the
diamonds in them were washed into nearby waterways. From there they
drained into ancient branches of the Orange River, which carried the
diamonds west to the Atlantic ocean.
Tumbled and battered for centuries by streams, rivers, and ocean

The marine deposits of Namibia
produce impressive quantities of
tides, the industrial grades and heavily included stones broke up and
gem-quality diamonds.
disappeared. As a result, a large percentage of the stones mined from the

beaches are gem quality.
173
The largest mining company in Namibia is Namdeb Diamond

Corporation—a partnership between De Beers and the Namibian govern-
ment. Other mining companies in Namibia include DBM, which you
learned about earlier. These organizations, along with a few other private
companies, focus their efforts on recovering the diamonds in the vast
deposit off Namibia’s coast.
As diamonds on the shore begin to diminish, advances in ocean-mining
technology are making it possible to dredge deeper, both near the coast and
in the deep seas offshore. This should keep Namibia producing for many
years to come.
CENTRAL AFRICA
The inland countries of central Africa—Botswana, Angola, and the

Democratic Republic of the Congo, formerly Zaire—are also participants
in Africa’s diamond trade. Of the three, only Botswana has a sizeable yield
from primary sources. The country has two of the largest known kimberlite
pipes, Orapa and Jwaneng. Botswana’s third mine is the Letlhakane. All
three mines are open-pit operations. Debswana, a joint partnership
between the Botswana government and De Beers, operates them.
Orapa, which began operating in 1971, is located in the northern region
The Jwaneng mine is one of the two
of Botswana and covers 263 acres (1.06 sq. km). It’s currently the largest
largest kimberlite pipes in the world. The
economically important kimberlite pipe in the world, producing over 6

other is Orapa, and both are located in
million carats per year.

central Africa.
Jwaneng was started in 1982 in the Kalahari Desert in southern

Botswana. Despite its name, which means “a place of small stones,” the
mine provides approximately 22 percent of the total world diamond
production by value—about US$1.5 billion. And, at an estimated 12.7
million carats recovered in 1998, it ranks as the third largest producer in
terms of total carats per year. This vast diamond deposit is predicted to
have reserves that will continue to produce diamonds for another 75 to
100 years.
Two smaller pipes located about 30 mi. (48 km) from the Orapa site
make up the Letlhakane mine operation, which started production in
1976. Although production volume from this mine is about 1 million
carats per year—considerably less than Orapa’s output—the ratio
between gem and industrial stones is impressive: 80 percent gem, 20
percent industrial.
Diamonds in the Democratic Republic of the Congo and Angola are
almost all alluvial, but mines there are plagued by illegal diggings and
unstable politics.
The Democratic Republic of the Congo is home to Miba, once
considered one of the world’s most prolific diamond deposits. The state-
owned diamond mining company ceased operations in 2008 and was still
seeking funding from outside sources in 2011. As a result, most of the
production is alluvial and undertaken by individual miners.
174
DIAMOND M INING
Zebra run wild in the game preserve at Botswana’s Jwaneng mine. Jwaneng’s vast diamond reserves are expected to last for at
least another 75 years.
Robert Grossman/Africaphotos
Most diamond production in the Democratic Republic of the Congo is alluvial. Local
workers spend long hours bent over, looking for diamonds in the mud.
175
Potentially important kimberlite pipes were discovered in Angola,

but the civil war there made it almost impossible to evaluate them at
the time. Even though Angola held its first parliamentary elections in
September 2008, diamond production will probably not increase until
Angola’s political and social conditions stabilize.
WEST AND EAST AFRICA
The diamonds from West Africa are almost all alluvial. In Guinea, diamonds
are found in scattered deposits in the tropical rain forests that cover the
country. In Sierra Leone, diamonds are found in the eastern province of
Tim Boyle/Newsmakers
Kono. About 70 percent of them are gem quality.
In certain portions of Ghana, the richness of the yield is almost unbe-
A large percentage of Sierra Leone’s
lievable: One 160-acre plot once yielded about 3 million carats. But the
diamonds are gem quality. This 620-ct.
rough diamond was discovered there in
stones are very small, and about 90 percent are industrial grade.
1970. It’s the largest rough diamond in
existence today and the seventh largest
In Tanzania, a country of eastern Africa, Canadian geologist John
rough diamond ever found.
Thorburn Williamson spent years searching for the rich pipe deposits he
was convinced were there. Finally, he discovered an enormous pipe at
Mwadui, where serious production began in 1945. Most of the richer
sections were mined out by the mid-1990s, but the mine is producing
again, and over half the total output is gem quality.
RUSSIA
Currently, over 98 percent of Russia’s production comes from the Siberian
republic of Sakha (formerly known as Yakutia). Russia’s production is
almost totally from primary sources, and the country is second only to
Botswana in production value.
Russia’s diamond sources are almost
Occasional gem-quality alluvial diamonds had been found in the area

all primary.
since 1829, but intensive exploration didn’t begin until the late 1940s.
Around 1955, those explorations led to the discovery of the first Soviet
diamond pipes: Mir (it means “peace”) and Udachnaya (“success”). The
Udachnaya deposit is the most prolific mine in Russia, accounting for at
least 90 percent of the area’s total production. Its output is declining,
though.
Since those original discoveries, several diamondiferous pipes have
been found. Jubilee and International came online in the late 1990s.
Russian mining officials plan to eventually replace the declining reserves
of the Udachnaya mine with output from the Jubilee.
The country’s production is from conventional open-pit mining
operations, owned by the government and operated by a government
agency. Production consists primarily of small industrial stones, but about
40 percent are gem quality. The yield includes a few colored crystals,
mostly greenish yellow. A few larger stones—most notably, the 232.10-ct.
Star of Yakutia—have also been found.
176
DIAMOND M INING
Frigid conditions add to the challenge of diamond mining in Siberia. The sub-zero temperatures make it difficult to keep people
and machines functioning.
That Russia’s mines are producing at all is a tribute to the engineering

skills and endurance of those who work there. Mining conditions in
Russia’s Siberian diamond fields are among the toughest found anywhere.
Sakha is a remote and sparsely populated region: one million inhabitants
within a 1.16 million sq. mi. (3 million sq. km) area.
The region has one of the most hostile climates on earth. Workers
endure frigid Siberian winters and brief, soggy, mosquito-infested summer
thaws. Annual temperature variations range from –85°F (–65°C) in the
winter to 95°F (35°C) in the summer. Winter temperature inversions
trigger dangerous air pollution levels from diesel fumes, sulfur dioxide
and carbon monoxide. The Udachnaya mine reports an average 2,000
hours (83 days) downtime during the winter months.
Adding to these harsh conditions is the almost inaccessible location.
Raw materials, equipment, spare parts, food, and other supplies can only
be shipped into Sakha by river during the brief three-month summer season.
These conditions make mining Sakha’s potentially valuable diamond
resources an extraordinary undertaking.
Due to the hostile Siberian geological environment, Mir and
International face operational challenges from flooding and dangerous
gas seepage from the surrounding rock formations. Despite these obsta-
cles, the operator intends to work these two mines until 2043 and 2022
respectively.
In the late 1990s, geologists discovered a field of diamond-bearing
kimberlites in northwestern Russia, on the White Sea. Besides posing
environmental challenges similar to the Siberian diamond mines, this area
also requires ecological sensitivity because it’s near important fish-breeding
grounds.
177
The Argyle mine was operated as an open pit for years, but its owners began converting it to an underground operation in the
late 1990s.
AUSTRALIA
Alluvial diamonds had been found in Australia since 1851, but always in
isolated quantities. Serious exploration began in 1972, in an area near the
margin of a craton at the Kimberley Plateau of Western Australia. After
seven years, geologists unearthed the Argyle AK1 lamproite pipe.
Argyle was unique for two reasons: It was the first primary deposit
found in a rock other than kimberlite, and it’s located in the younger part
of the craton, in an area where geologists hadn’t expected to find diamond-
bearing pipes.
Years of planning and construction followed the pipe’s discovery, and
the open-pit mine began full production in 1985. The mine had an initial
estimated lifespan extending to around 2006. However, in the late 1990s,
This collection of rough diamonds from
Argyle’s owners decided to make the transition to underground mining

the Argyle mine shows the mostly
brown-to-yellow color range. Most of
over a 10-year period.
the mine’s diamonds are much smaller
No other mine has approached the production volume—by weight—of

than these, averaging around 0.08 ct.
this deposit. However, most of Argyle’s diamonds are small, averaging
178
DIAMOND M INING
Robert Weldon/GIA
The Argyle mine produces huge quantities of generally small The pride of the Argyle mining operation is its production of
diamonds. Most of them are cut by India’s affordable labor highly prized pink diamonds. These are from its 2007 sale.
force and used in mass-market jewelry pieces.
about 0.08 ct. More than 90 percent of the stones are classified as brown Ke y C o n c e p t s
or yellow in color. Australia’s Argyle mine was the first
Argyle is an important source of the tiny diamonds used in inexpensive
commercially important primary
mass-produced jewelry, but balancing this output are some high-quality
source of diamonds in lamproite.
fancy colors, especially pinks. Their annual pink diamond sale is an
important industry event. The Argyle mine is famous for
From Argyle, its developers followed trails of indicator minerals

producing rare and valuable pink
farther east. In the late 1970s, they discovered a new diamond field in the
diamonds.
deserts of northern Australia. The first kimberlites were identified in
1993. They named the development Merlin, and its kimberlite pipes were
named after King Arthur’s legendary sword Excalibur and the Knights of
the Round Table. After some promising bulk sampling, the company
started trial mining. The first sale of Merlin’s diamonds was in May of
1999, but by early 2003, its operators announced the mine’s closure for
economic reasons.
179
The large kimberlite pipe in Canada’s Point Lake (foreground) is hundreds of feet
below its surface. The pipe was spotted during aerial exploration.
CANADA
Diamond exploration in Canada had its beginnings in the US. In the
1800s, some diamonds were found in the Great Lakes states as well as
North Carolina, Georgia, and California. Scientists noted that they were
all on the former edge of a great glacier that extended from the polar
regions 20,000 years ago. After determining the diamonds’ glacial origins,
they traced the glacier’s roots back to Canada.
Geologists know that Canada, which sits on the world’s largest craton,
probably contains some of the oldest rock in the world. Geologists
eventually focused on the Northwest Territories, and that’s where they
discovered the first kimberlite pipe, in 1990. It was under a lake, so they had
to drill underwater at an angle to reach the deposit for testing.
Since that first pipe, they’ve discovered many more. Canada’s diamond-
bearing kimberlites tend to be smaller but richer in diamonds per ton of
ore than economic pipes elsewhere in the world. South African mines
average 40 carats per 100 tons, but one Canadian pipe yielded 62 carats
from a 50-metric-ton sample.
By the late 1990s, intense exploration had revealed vast diamond
resources in the Northwest Territories. More than half of the kimberlites
discovered during the early days of exploration contained diamonds, com-
pared with an average of 20 percent for the rest of the world’s deposits.
The first mine—Ekati—began production in 1998. As you learned in
Assignment 5, Ekati is located in a remote arctic tundra region. The only
access to this region is by air or by “winter roads” that are passable only
when the ground is frozen solid. In spite of this, mining and processing
take place 24 hours a day, 365 days a year.
180
DIAMOND M INING
The initial mining phase included ore processing and recovery from
six small pipes in the area. All six were established as open-pit mines.
Currently, there is also one underground mine.
Some of Ekati’s diamonds are among the best of any mined in the
world. Many compare favorably with gems from mines like Jwaneng and
Udachnaya. Ekati uses grease tables to separate rough diamonds from ore
because diamonds from this mine are graphite coated and don’t fluoresce
sufficiently to X-rays.
Ekati’s initial annual production estimate was 3 to 5 million carats over
the mine’s projected 17-year life. By 2012, however, Ekati’s output had
reached 7.5 million carats and the mine was expected to operate for an
additional seven years.
Each pipe has a distinct range of diamond sizes and qualities, so Ekati
can supply a consistent range of goods across the market. Geologists also
discovered more than 150 additional kimberlite pipes within the claim
site. Exploration of these might reveal even more economically viable
pipes.
The Diavik mine—also in the Northwest Territories—is Canada’s
second operational diamond mine. Like Ekati, access is by a winter road
for a short season and by air the rest of the year. There are more than 60
small pipes within the mine area, each located under a small lake. This
requires draining and construction of dams to allow for open-pit mining.
Jiri Hermann
This is Canada’s Ekati diamond mine, with its camp and processing plant in the
background. Roads to the mine are only passable in the winter, when the ground is
frozen solid.
181
Harold & Erica Van Pelt/GIA
The Ekati mine in Canada is known for the high quality of its diamonds. The Ekati
diamonds in the rings weigh about 1 ct. each, those in the earrings weigh about
0.10 ct. each, and the loose diamond weighs 1.29 cts.
Water behind each dam is kept frozen by a technique that uses circulating
liquid carbon dioxide. Diavik’s sophisticated recovery plant uses X-ray
sorting to separate the diamonds from the ore.
The first of Diavik’s production was brought to market in 2003. By
2012, Diavik’s annual production had reached 8 million carats. Estimates
at the time placed Diavik’s projected lifespan at 16 to 22 years.
The Ekati and Diavik mines are economically viable only because each
contains many small, closely situated diamond pipes with enough diamond-
bearing ore to continue producing over an extended period of years.
Snap Lake is another mine in the Northwest Territories. It’s a smaller
operation than Ekati or Diavik. The mine was acquired by De Beers in the
early 2000s. Initial bulk sampling yielded encouraging results, and produc-
tion began in 2008. In 2012, the mine’s expected lifespan was estimated
to be 20 years, with an annual yield of 1.4 million carats.
Snap Lake is the first entirely underground diamond mine in Canada.
In fact, it’s the first mine in the world to begin underground operations
without an open-pit stage. Because of this, it probably has less environ-
mental impact than an open-pit mine.
Gahcho Kué, formerly known as Kennady Lake, is another promising
development in the Northwest Territories. So far, geologists have detected
eight diamond-bearing kimberlites and several smaller bodies that contain
diamonds. Two pipes contain large stones up to 10 carats in size. These
large sizes encouraged operators to continue bulk sampling, but limited
reserves and ore values make mining them not yet economic. This might
Ke y C o n c e p t s change if geologists discover more diamond-bearing pipes in the area.
New discoveries in Canada make it Geologists discovered what became known as the Jericho pipe in
Nunavut province in 1994. Bulk sampling revealed large stones in the 5
to 25 carat range and a potential yield of 3 million carats per year over
an important twenty-first-century
eight years. Unfortunately, like Gahcho Kué, the Jericho pipe doesn’t
diamond producer.
contain enough ore to justify mining at present.
182
DIAMOND M INING
Partially sorted rough from the Ekati mine shows why its owners were excited about
the mine’s potential.
Canada’s newest diamond mine, the Victor, is located in Ontario. The

mine, owned by De Beers, opened in 2008. Its yield is reported to be
about 600,000 gem-quality carats per year.
With extensive exploration and sampling continuing in the Northwest
Territories, Alberta, Saskatchewan, Ontario, and Quebec, it’s very likely
that additional mines will be operational in the future. This makes
Canada’s potential contribution to total world production extremely sig-
nificant. Industry experts believe Canada will continue to be an important
twenty-first-century producer.
As you’ve learned in this assignment, the future of diamond mining
involves far more than locating and recovering diamonds. The successful,
modern diamond mine must meet a variety of wide-ranging social, eco-
nomic, and environmental responsibilities.
Where once there were just one or two, many countries currently
contribute to total worldwide diamond production. And, although the total
carats mined varies from year to year, it has been steadily increasing. This
means that the supply of diamonds will continue to satisfy the also-
increasing worldwide demand for them.
183
Diamonds in the United States

Some portions of the US are built on cratons, but
the country’s geology is considered by many to be
unfavorable for diamond deposition. Even so, there
have been a few important diamond discoveries in
its history.
In 1906, John Huddleston discovered a diamond
on his farm near Murfreesboro, Arkansas. This led
to a search of the surrounding countryside, where
four pipes were discovered. Of these, two have
produced diamonds.
The Arkansas mines yielded a 40.23-ct. diamond,
the Uncle Sam, in the summer of 1924. The event
created great national interest, but 90 percent of the
yield was industrial quality and never produced the
vast returns expected.
The area is now a state park. For an admission
fee, visitors are allowed to do their own prospect-
ing and keep what they find. In 1956, an amateur
explorer found a fine-quality 15.31-ct. rough dia-
mond that yielded an 8.27-ct. marquise. A 3.11-ct.
crystal found the following year was named the
Eisenhower Diamond because it resembled the
profile of President Eisenhower. In 1990, a lucky
park visitor picked up a 3.03-ct. rough diamond
that yielded a finished 1.09-ct. D-Flawless gem.
In 1996, geologists decided to reevaluate the
commercial potential of the site. They collected a
10,000-ton bulk sample for analysis. The testing
revealed that its diamond content fell far short of
the requirements for a commercially viable mine.
Amateur prospectors can try their
luck at the Crater of Diamonds State
Another US diamond discovery came with a

Park in Arkansas, but actual diamond
cluster of kimberlite pipes along the Colorado-

discoveries are rare.
Wyoming border, discovered in the mid-1960s. A mine opened at Kelsey Lake,

Colorado, in 1996, and had the distinction of being the only commercial producer of
diamonds in the US. You learned about this in Assignment 5.
Alluvial diamonds have been discovered from time to time in a number of other
places in the US. The largest turned up in West Virginia. It weighs 34.46 cts. and has
a slight greenish gray cast. It was found by Grover C. Jones, who named it the Punch
Jones Diamond in honor of one of his 17 sons. A 23.75-ct. octahedron of fine form
but poor quality (known as the Dewey Diamond) was found at Manchester, Virginia,
in 1854.
184
DIAMOND M INING
Most modern diamond-mining operations are large in scale The Cullinan mine is known for producing blue diamonds as
and extremely expensive. well as very large diamonds.
Improved technology caused a shift in emphasis from alluvial The Finsch is the most technologically advanced underground
to primary diamond mining. mine in the world.
Namibia holds perhaps the largest marine diamond deposits Russia’s diamond sources are almost all primary.
in the world.
Australia’s Argyle mine was the first commercially important
Potentially profitable diamond sources are rare. primary source of diamonds in lamproite.
India was the world’s only major diamond source until the The Argyle mine is famous for producing rare and valuable
eighteenth century. pink diamonds.
While some of Brazil’s production is now from kimberlite New discoveries in Canada make it an important twenty-first-
pipes, the majority of its diamond deposits are still alluvial. century diamond producer.
Africa has the world’s most diverse diamond sources.
Key Terms
Block caving—Underground mining that involves Open-pit mining—Removal of mineral-bearing ore
building a concrete-lined tunnel under an ore deposit, from a large surface excavation.
then collecting the ore through openings in the liner.
Overburden—Sand, gravel, or rock that covers a
Carats per hundred metric tons (cpht)—Measure diamond pipe. Must be removed to reach diamond-
of a mine’s productivity based on the carat weight of bearing ore.
the rough diamonds it produces per 100 metric tons
of ore. Primary crushing—Reduction of newly mined ore to
a manageable size.
Dense media separation—A recovery process that
separates diamonds from lighter material. Also called Recovery—Any method used to separate diamonds
heavy media separation. from ore or alluvial sediments.
Drift—A horizontal tunnel drilled through a diamond Scrubber—An apparatus that washes away dirt and
pipe. clay from diamond-bearing ore.
Grease belt—An apparatus that uses diamonds’ X-ray separation—A recovery method that uses
affinity for grease to separate them from other X-rays to detect diamonds and an air jet to remove
minerals. them from ore.
185
DIAMONDS AND DIAMOND G RADING BOOK 1
PHOTO COURTESIES
The Gemological Institute of America gratefully acknowledges the following people and organizations for their assistance in gathering or producing some of the images used in this assignment book:
Argyle Diamond Mines (Ply), Ltd. Indo Argyle Diamond Council

Ashton Mining Ltd. K.R. Gems & Diamonds International
BHP Diamonds Inc. Mouawad Jewelers
British Antarctic Survey Information Library Namibian Minerals Corporation
Collins Family Jewelers Precious Gem Resources, Inc.
De Beers REX Diamond Mining Corporation
American Museum of Natural History, Department of Library Services Rio Tinto Diamonds
Diamond Information Center Rosy Blue
Diamond Promotion Service Shree Ramkrishna Export
The Diamond Registry Inc. Suzanne Tennenbaum
Diamond Trading Company Venus Jewel
GE Corporate Research and Development William Goldberg Corporation
186
FOR FURTHER READING
For Further Reading

Gems & Gemology (G&G), GIA’s professional journal, provides in-depth feature
articles on the latest gemological research, from gem treatments, lab-grown gems,
and the evaluation of gem quality to developments in gem production, market
sources, and more.
To give you the opportunity to learn more about the subjects you are studying
and enrich your gemological knowledge, a list of G&G articles relevant to each Scan the QR code above or go to
Diamonds & Diamond Grading assignment is provided below. It is important to https://www.gia.edu/library to
note that this reading is optional. You will not be tested on the content of these access articles for further reading.
articles.
All G&G articles are available for download free of charge on GIA’s website, www.gia.edu. Copies of these articles
are also available at your GIA campus location. Check with your instructor for access to them.
Assignment 1: Beyond the Essentials

Gilbertson A. (2016) Diamond Quality: A Short History of the 4Cs. GIA Research & News
https://www.gia.edu/gia-news-research/diamond-quality-short-history-4Cs
Assignment 2: Birth of the Modern Diamond Industry

Bedini A. et al. (2012) The Vallerano Diamond from Ancient Rome: A Scientific Study. Gems & Gemology, Vol.
48, No. 1
https://www.gia.edu/gems-gemology/spring-2012-vallerano-diamond-bedino
Scarratt K., Shor R. (2006) The Cullinan Diamond Centennial: A History and Gemological Analysis of Cullinans
I and II. Gems & Gemology, Vol. 42, No. 2
https://www.gia.edu/gems-gemology/summer-2006-cullinan-diamond-scarratt
Janse A.J.A. (1995) A History of Diamond Sources in Africa: Part I. Gems & Gemology, Vol. 31, No. 4
https://www.gia.edu/gems-gemology/winter-1995-diamond-history-africa-janse
Janse A.J.A. (1995) A History of Diamond Sources in Africa: Part II. Gems & Gemology, Vol. 32, No. 1
https://www.gia.edu/gems-gemology/spring-1996-diamond-history-africa-janse
Boyajian W.E. (1988) An Economic Review of the Past Decade in Diamonds. Gems & Gemology, Vol. 24, No. 3
https://www.gia.edu/gems-gemology/fall-1988-economic-review-diamonds-boyajian
Shipley R.M. (1949) Diamond Syndicates and Their Successors. Gems & Gemology, Vol. 6, No. 7
https://www.gia.edu/doc/fall_1949.pdf
Swindler K. (1949) The Diamond as an Engagement Ring. Gems & Gemology, Vol. 6, No. 7
Gemological Digests (1949) Jagersfontein, Dutoitspan, Premier, Oppenheimer, Congo, Diamond Clubs.
Gems & Gemology, Vol. 6, No. 7
Shigley J.E. Bibliography, Historical Reading: The Diamond Fields of South Africa: Part 1 (1868-1893)
https://www.gia.edu/gia-news-research/historical-reading-diamond-fields-south-africa-1868-1893
Shigley J.E. Bibliography, Historical Reading: The Diamond Fields of South Africa: Part 2 (1893-2014)
https://www.gia.edu/gia-news-research/historical-reading-diamond-fields-south-africa-1893-2014
187
DIAMONDS AND DIAMOND GRADING BOOK 1
Assignment 3: The Modern Diamond Market

Shor R. (2017) De Beers Optimistic as Sales Revive; Luxury Houses Remain Cautious. Industry Analysis
https://www.gia.edu/gia-news-research/debeers-optimistic-sales-revive-luxury-houses-remain-cautious
Shor R. (2015) Major Diamond Find Brightens Market. Industry Analysis

https://www.gia.edu/gia-news-research/major-diamond-find-brightens-market
Shor R. (2014) Gem News International: Online Diamond Sales 17% of U.S. Market. Gems & Gemology, Vol. 50, No. 4
https://www.gia.edu/gems-gemology/winter-2014-gemnews-online-diamond-sales
Shor R. (2014) Rough Diamond Auctions: Sweeping Changes in Pricing and Distribution. Gems & Gemology,
Vol. 50, No. 4
https://www.gia.edu/gems-gemology/winter-2014-rough-diamond-auctions-changes-pricing-distribution
Weldon R., Shor R. (2014) Botswana’s Scintillating Moment. Gems & Gemology, Vol. 50, No. 2
https://www.gia.edu/gems-gemology/summer-2014-weldon-botswana-scintillating-moment
Shor R. (2014) Retailers, Diamond Trade Still Vying Over Prices. Industry Analysis
https://www.gia.edu/gia-news-research-may-2014-industry-analysis-retailers-diamond
Shor R. (2014) Recycled Diamonds: ‘Mining’ the World’s Largest Diamond Resource. GIA Research & News
https://www.gia.edu/gia-news-research/recycled-diamonds-mining-worlds-largest-diamond-resource
Lucas A., Hsu T. (2014) Visit to the China Diamond Exchange Center. GIA Research & News
https://www.gia.edu/gia-news-research-china-diamond-exchange-lucas
Hsu T., Lucas A. (2014) Visit to Zbird in Shanghai: Unlocking the Chinese Retail Diamond Industry Secrets.
Field Report
https://www.gia.edu/gia-news-research-zbird-industry-hsu
Shor R. (2014) Taming Zimbabwe’s Diamond Production. GIA Research & News
https://www.gia.edu/gia-news-research-zimbabwe-diamonds-shor
Shor R. (2013) Botswana: Making Beneficiation Work. GIA Research & News
https://www.gia.edu/research-news-botswana-making-beneficiation-work
Shor R. (2013) A 118.28 ct Diamond Achieves Record Price. Industry Analysis

https://www.gia.edu/gia-news-research-sothebys-diamond-auction-2013-shor
Shor R. (2013) Auction Houses: A Powerful Market Influence on Major Diamonds and Colored Gemstones.
https://www.gia.edu/gems-gemology/spring-2013-shor-auction-houses
Shor R., Weldon R. (2010) An Era of Sweeping Change in Diamond and Colored Stone Production Markets.
https://www.gia.edu/gems-gemology/fall-2010-diamond-pearl-shor
Shor R. (2005) A Review of the Political and Economic Forces Shaping Today’s Diamond Industry. Gems & Gemology,
Vol. 41, No. 3
https://www.gia.edu/gems-gemology/fall-2005-political-economic-forces-diamond-shor
Shor R. (2005) Gem News International: Kimberley Process Ratified. Gems & Gemology, Vol. 38, No. 4
https://www.gia.edu/gems-gemology/winter-2002-gem-news-international
188
FOR FURTHER READING
Smith C.P., McClure S.F. (2001) Gem News International: Report from the 2nd World Diamond Conference,
Vancouver. Gems & Gemology, Vol. 37, No. 3
https://www.gia.edu/gems-gemology/fall-2001-gem-news-international
Sevdermish M. et al. (1998) The Rise to Prominence of the Modern Diamond Cutting Industry in India. Gems &
Gemology, Vol. 34, No. 1
https://www.gia.edu/gems-gemology/spring-1998-diamond-cutting-india-sevdermish
Assignment 4: How Diamonds Form

Smith E.M. et al. (2017) The Very Deep Origin of the World’s Biggest Diamonds. Gems & Gemology, Vol. 53, No. 4
https://www.gia.edu/gems-gemology/winter-2017-worlds-biggest-diamonds
Smith E.M., Moe K.S. (2016) Micro-World: Ferropericlase Inclusion in Diamond. Gems & Gemology, Vol. 52, No. 4
https://www.gia.edu/gems-gemology/winter-2016-microworld-ferropericlase-inclusion-diamond
GIA (2016) Large, Rare Diamonds Reveal the Inner Workings of Earth’s Mantle
https://www.gia.edu/diamonds-reveal-inner-workings-of-earths-mantle
Breeding C.M. (2015) Diamond-Bearing Eclogite Xenoliths from the Ardo So Ver Dykes. Gems & Gemology,
Vol. 51, No. 2
https://www.gia.edu/gems-gemology/summer-2015-gemnews-diamond-bearing-eclogite-xenoliths-ardo-so-ver-dykes
Johnson P., Moe K.S. (2015) Lab Notes: Diamond in Diamond. Gems & Gemology, Vol. 51, No. 1
https://www.gia.edu/gems-gemology/spring-2015-labnotes-diamond-in-diamond
Pay D. et al. (2014) Tiny Inclusions Reveal Diamond Age and Earth’s History: Research at the Carnegie
Institution. GIA Research & News
https://www.gia.edu/gia-news-research-tiny-inclusions-reveal-diamond-age
Pay D. et al. (2014) Carbon Isotope Studies Reveal Diamond Growth History. GIA Research & News
https://www.gia.edu/gia-news-research-carnegie-carbon-isotope-studies-diamond
Pay D. et al. (2014) Carnegie Research: Every Diamond Tells a Story. GIA Research & News
https://www.gia.edu/research-news-carnegie-story-behind-story
Shirey S.B., Shigley J.E. (2013) Recent Advances in Understanding the Geology of Diamonds. Gems & Gemology,
Vol. 49, No. 4
https://www.gia.edu/gems-gemology/WN13-advances-diamond-geology-shirey
Lu R. (2009) Coesite Inclusions: Microbarometers in Diamond. Research News

https://www.gia.edu/ongoing-research/coesite-inclusions-in-pink-diamond
Diehl R., Herres N. (2004) X-Ray Fingerprinting Routine for Cut Diamonds. Gems & Gemology, Vol. 40, No. 1
https://www.gia.edu/gems-gemology/spring-2004-x-ray-fingerprinting-cut-diamonds-diehl
Kirkley M.B. et al. (1991) Age, Origin, and Emplacement of Diamonds: Scientific Advances in the Last Decade.
https://www.gia.edu/gems-gemology/spring-1991-diamond-emplacement-kirkley
Meyer H.O.A., Gübelin E. (1981) Ruby in Diamond. Gems & Gemology, Vol. 17, No. 3
https://www.gia.edu/gems-gemology/fall-1981-diamond-ruby-inclusion-meyer
Lonsdale K. (1947) Single Crystal Diamonds. Gems & Gemology, Vol. 5, No. 11
189
Assignment 5: Exploring for Diamonds

Janse A.J.A. (2007) Gem News International: Large Diamond Mine to be Developed in Saskatchewan, Canada.
Shor R. (2005) Gem News International: 10.53 ct Gem-quality Diamond from Saskatchewan, Canada. Gems &
https://www.gia.edu/gems-gemology/spring-2005-gem-news-international
Kjarsgaard B.A., Levinson A.A. (2002) Diamonds in Canada. Gems & Gemology, Vol. 38, No. 3
https://www.gia.edu/gems-gemology/fall-2002-diamonds-canada-kjarsgaard
Shigley J.E. et al. (2001) Discovery and Mining of the Argyle Diamond Deposit, Australia. Gems & Gemology,
Vol. 37, No. 1
https://www.gia.edu/gems-gemology/spring-2001-argyle-diamond-deposit-australia-shigley
Gem News International: Diamond Exploration in Alberta, Canada (1998) Gems & Gemology, Vol. 34, No. 2
https://www.gia.edu/gems-gemology/summer-1998-gem-news-international
Gem News International: Anticipated Production in the Northwest Territories (1998) Gems & Gemology, Vol. 34, No. 2
Kopf R.W. et al. (1990) Recent Discoveries of Large Diamonds in Trinity County, California. Gems & Gemology,
Vol. 26, No. 3
https://www.gia.edu/gems-gemology/fall-1990-diamonds-california-kopf
Vierthaler A.A. (1961) Wisconsin Diamonds. Gems & Gemology, Vol. 10, No. 7
Burgoon J.R. (1956) Diamond Mining in Arkansas. Gems & Gemology, Vol. 8, No. 12
https://www.gia.edu/doc/winter_1956.pdf
Assignment 6: Diamond Mining

Svisero D.P. et al. (2017) Brazilian Diamonds: A Historical and Recent Perspective. Gems & Gemology, Vol. 53, No. 1
https://www.gia.edu/gems-gemology/spring-2017-brazilian-diamonds
Shor R., Smit K. (2016) Russia’s Lomonosov Diamond Project Shows its Fancy Colors. GIA Research & News
https://www.gia.edu/gia-news-research/russia-lomonosov-diamond-project-shows-fancy-colors
King J. et al. (2016) Lab Notes: Examination of the Largest Canadian Diamond. Gems & Gemology, Vol. 52, No. 2
https://www.gia.edu/gems-gemology/summer-2016-labnotes-examination-largest-canadian-diamond
Shigley J.E. et al. (2015) Mining Diamonds in the Canadian Arctic: The Diavik Mine. Gems & Gemology, Vol. 52, No. 2
https://www.gia.edu/gems-gemology/summer-2016-diamonds-canadian-arctic-diavik-mine
Shor R. et al. (2015) Letšeng’s Unique Diamond Proposition. Gems & Gemology, Vol. 51, No. 3
https://www.gia.edu/gems-gemology/fall-2015-letseng-unique-diamond-proposition
Shor R. (2015) Bright Light at Midnight: Canada’s Far North Land of Diamonds. GIA Research & News
https://www.gia.edu/gia-news-research/bright-light-midnight-canadas-far-north-land-diamonds
Shor R. (2014) Ekati + Diavik = A Revived CanadaMark. GIA Research & News
https://www.gia.edu/gia-news-research-revived-canadamark
Shor R. Weldon R. (2014) Diamonds from the Roof of the World. GIA Research & News
https://www.gia.edu/gia-research-news-diamonds-roof-world-shor-weldon
190
FOR FURTHER READING
Shor R. (2014) After a Century, Riches Still Flow from Cullinan Mine. Industry Analysis
https://www.gia.edu/research-news-industry-analysis-cullinan-mine
Lucas A. (2013) Field Report: Diamond Mining in Minas Gerais, Brazil.
https://www.gia.edu/gia-news-research-Diamond-Mining-in-minas-gerais-brazil
Shigley J., Breeding C.M. (2013) Gem News International: Bright Yellow Diamonds from Sierra Leone.
https://www.gia.edu/gems-gemology/WN13-GNI-yellow-diamonds-sierraleone
Shor R. (2013) Diamond Digging in Ghana. Research News
https://www.gia.edu/gia-news-research-diamonds-Ghana
Kampf A.R. (2007) Gem News International: Namibian diamond mining by Namdeb. Gems & Gemology, Vol. 43, No. 4
Taylor R. (2006) Gem News International: Update on Diamond Trading in Sierra Leone. Gems & Gemology,
Vol. 42, No. 4
Shor R. (2005) Gem News International: 10.53 ct Gem-Quality Diamond from Saskatchewan, Canada.
https://www.gia.edu/gems-gemology/spring-2005-gem-news-international
Janse A.J.A. (2002) Gem News International: Australia’s Ellendale Diamond Mine Opens. Gems & Gemology,
Vol. 38, No. 3
Janse A.J.A. (2007) Global Rough Diamond Production Since 1870. Gems & Gemology, Vol. 43, No. 2
https://www.gia.edu/gems-gemology/summer-2007-global-rough-diamond-production-janse
Gem News International: Conference Report: AGU Meeting Examines Diamond Provenance (2002)
Shigley J.E. et al. (2001) Discovery and Mining of the Argyle Diamond Deposit, Australia. Gems & Gemology,
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Diamonds &amp; Diamond Grading Book 1 (Assignments 1-6) 2019

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Diamonds &

1. Introduction: Beyond the Essentials

2. Birth of the Modern Diamond Industry

3. The Modern Diamond Market

4. How Diamonds Form

5. Exploring for Diamonds

Assignment 1 Introduction: Beyond the Essentials . . . . . . . . . . . . . 1

Assignment 2 Birth of the Modern Diamond Industry . . . . . . . . . 25

Assignment 3 The Modern Diamond Market. . . . . . . . . . . . . . . . . 57

Assignment 4 How Diamonds Form . . . . . . . . . . . . . . . . . . . . . . . 91

Assignment 5 Exploring for Diamonds . . . . . . . . . . . . . . . . . . . . 117

Assignment 6 Diamond Mining . . . . . . . . . . . . . . . . . . . . . . . . . . 141

For Further Reading . . . . . . . . . . . . . . . . . . . . . . . 187

Cover photos (top to bottom):

GIA & Tino Hammid

Eric Miller/iAfrika Photos

Welcome to Diamonds and

• You’ll have a solid foundation

• You’ll understand and be able

• You’ll be able to use

• You’ll understand the structure

• You’ll qualify for a variety of

Even De Beers, which was a stabilizing force in diamond supply and

Joe Richard/University of Florida/AP Wide World Photos Shane McClure/GIA

UNDERSTANDING AND USING DIAMOND GRADES

Diamond grades make it possible for people to discuss diamonds simply

Wholesaler—Someone who sells

Appraisal—An estimation of the

Wholesalers provide a valuable service to the industry by providing retailers with

Diamond Grading Lab

Class give you the oppor-

DIAMOND GRADING REPORTS

Reputable gemological laboratories, like the GIA Laboratory, are the

John Schule Photography

Gemological laboratories grade hundreds of thousands of diamonds a

WHOLESALE PRICE LISTS

strongly on the market conditions that exist at a particular time.

BEYOND THE LAB Ke y C o n c e p t s

Usually, the amount of attention a diamond gets depends on its quality

Alex Mak/ORO Diamante Inc.

Diamond-grading skills are important in

Most appraisals involve mounted

Diamond grading skills are crucial to an appraiser’s success. It’s important to be

of the jewelry—everything from the Four Cs of the gems to the jewelry’s

WHY DIAMOND FORMATION AND MINING

GIA & Tino Hammid

The unique physical properties of

Anthony Bannister/Gallo Images/Corbis

FORMATION AND DELIVERY TO THE SURFACE

Diamond exploration requires a global perspective. Prospectors must consider how

Environmentalists monitor the fish population surrounding Canada’s Ekati diamond

HOW MINING AND PROCESSING CONTRIBUTE TO VALUE

The quality of a diamond mine’s output is an important consideration for a prospective

Finding the diamonds is only part of the process. Once prospectors

The information in this course is divided into sections. Assignments 2 and

Assignment 4—How Diamonds Form: This is a look at formation and

Assignment 11—Grading Clarity: You’ll learn how graders assess the

Evaluating Finish: You’ll learn how to assess the diamond’s pavilion,

Assignment 16—Grading Fancy Cuts: Fancy cuts are a major part of

Assignment 20—Succeeding in the Marketplace: This assignment

CHECKING YOUR PROGRESS

missed. The questionnaires also give GIA an idea of your progress.

Another terrific way to check your progress is to take another look at

THE FINAL EXAMINATION

Diamonds & Diamond Grading Book 1 (Assignments 1-6) 2019

Diamonds & Diamond Grading Book 1 (Assignments 1-6) 2019