Diamonds

The diamond, which is the mineral form of carbon, is the hardest, strongest natural material known on earth. The word diamond is derived from adamas, the ancient Greek term meaning “invincible.” Diamonds form deep within the Earth and are typically billions of years old. Diamonds have also have been found in and near meteorites and their craters. Diamonds are considered precious gemstones but lower grade diamonds are used for industrial applications such as drilling, cutting, grinding and polishing. The South African De Beers cartel controls the largest portion of the world’s natural diamond production.

Supply – World production of natural gem diamonds in 2001, the latest reporting year, rose sharply to 68.500 million carats from 62.0 million in 2000. The world’s largest producers of natural gem diamonds in 2001 were Botswana (representing 29% of world production), Russia at 17%, and Australia at 16%. World production of industrial diamonds fell to 48.0 million carats in 2001 (the latest reporting year) from 55.7 million in 2000. The world’s largest producers of industrial diamonds are Australia (27%), Russia (24%), Congo (19%), South Africa (14%), and Botswana (11%).

Trade – The US relied on net imports for 89% of its consumption of natural diamonds, which totaled 1.8 million carats in 2002.