The Diamond Pipeline: From Mine to Ring

How a diamond travels from mines in Africa, Russia and Canada through trading hubs, cutting centres and jewellers to customers, and where value is added.

The diamond pipeline describes a diamond’s journey.

Stages

Mining: in Botswana, Russia, Canada, Angola, South Africa and others.
Sorting and selling rough diamonds.
Trading hubs: Antwerp, Dubai, Mumbai.
Cutting and polishing: mostly in Surat, India.
Jewellery manufacturing.
Retail: jewellers sell to consumers.

Value

The retail price is often many times the rough diamond’s value.
Big mark-ups come at retail and branding.

Big producers

Alrosa (Russia) and De Beers (majority-owned by Anglo American, with Botswana as a partner) are the largest miners.

Botswana

Botswana used diamond revenue to build its economy, and pushed for more cutting to happen locally.

India’s role

India cuts and polishes around 90 percent of the world’s diamonds by volume.

The journey

A rough stone mined in Botswana is sold in Gaborone, traded in Antwerp, cut in Surat, set in Mumbai and sold in a Dubai store.

Thinking most of a diamond's price comes from mining

Large mark-ups come at retail and branding.

Key takeaways

Diamonds travel from mines through traders, cutters and jewellers.
Antwerp, Dubai and Mumbai are trading hubs.
Retail and branding add large mark-ups.
India cuts about 90 percent of diamonds by volume.