If you are thinking of investing in diamonds, this article looks at the history of diamond mining and explains the diamond mining process.
The history of diamond mining
This desirable gemstone has a rich and fascinating history. India began trading diamonds from as early as the 4th Century BC.
They were found initially in rivers and streams, and mining for diamonds took place in alluvial deposits in river beds and ocean beaches.
The first markets were internal: India’s wealthy classes; though later in medieval times, diamonds became an important commodity and were transported to Western Europe in caravans.
By the early 18th Century, India’s diamond supply dwindled, and Brazil picked up the gauntlet. It was there that early gold miners panning for gold discovered diamonds amongst their gold nuggets.
For the next century and a half, Brazil commanded the diamond market with the wealthy Europeans being the primary consumers.
By the end of the eighteenth-century political upheaval in Europe shifted the distribution of wealth with populations in both Europe and the US enjoyed increasing affluence.
In 1867, the first diamond to be discovered in South Africa was found on the banks of the Orange River near Hopetown and by 1869 diamonds were located underground.
Increasing supply and demand broadened the diamond market. In 1886, large deposits of diamonds were discovered in Kimberley, South Africa.
Shortly afterwards, in 1888, Cecil Rhodes established De Beers Consolidated Mines Limited which by 1900, controlled around 90% of the world’s diamond supply.
Diamond yields increased from 1 million carats a year in 1870 to three million carats a year in 1920. However, that was just the start of the diamond boom.
By 1970, fifty million carats a year were being produced and over one hundred million carats per year by 1990. By then, Zaire and the Soviet Union had also become major players, and in 1985 sources were discovered in Australia and fifteen years later in Canada.
De Beers was key to the development of the diamond market, and you can learn more about their contribution here.
How is a diamond mined?
Diamond mining is an intense activity. To produce just one carat of diamond we need to mine on average 250 tonnes of rock and earth.
Therefore, it is not surprising that diamond mining is one of the most resource heavy and time-consuming industrial mining processes.
The two most common forms of diamond mining are diamond pipe mining and alluvial diamond mining:
Diamond pipe mining
When prospectors find small diamond deposits, they will follow the trail until they discover their sources. Once they identify a productive pipe, tunnels are excavated to extract the rock and transport it to the surface.
The diamond containing rock is transported to a facility where it is screened for diamonds. Pipes are also mined using open cast mining.
Alluvial mining
Alluvial diamond mining is carried out on river beds and ocean beaches where diamonds have been separated from their host rocks and transported by erosion.
Alluvial mining was the first type of mining to be used in India. Dams are built to keep out the water and sand which the deposits are raked for diamonds.
Alternatively, beaches and river beds are physically moved by machinery to other locations where they can be more readily sifted for diamonds.
The diamond industry
if you want to learn more about the diamond industry, please click here.
