Diamonds have spellbound humankind for centuries with their alluring sparkle, mystical appeal and romantic symbolism. But behind the dazzle of each polished gem lies a multi-billion dollar global industry—one still dominated by just a handful of large diamond mining companies.
In this investigative report, I‘ll analyze 10 of the world‘s largest publicly-traded diamond miners based on annual revenue. You‘ll discover how these diamond behemoths exert control across the mining, sorting, polishing and sales spectrum while unearthing some of history‘s most remarkable stones.
A Primer on Diamond Mining Economics
Before profiling each diamond titan, let‘s shine some light on the key forces underpinning global diamond mining:
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Global rough diamond production in the last two decades has remained remarkably consistent at around 127 million carats per year on average. The highest output came in 2017 at 151 million carats while 2020 saw the lowest volume in 20 years with just 111 million carats due to COVID-19 lockdowns disrupting mining activity.
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Four countries dominate global diamond mining – Russia, Botswana, Canada and Democratic Republic of Congo (DRC) account for over 78% of all gem-quality rough carat production.
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Global demand for polished diamonds fell dramatically in 2020 as COVID severely impacted key consumer markets like the USA, China and India. However demand resurged nearly 30% year-over-year in 2021 fuelled by economic recovery and release of pent-up demand.
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Most industry experts forecast the annual market for diamond jewelry steadily rising thanks to an expanding middle class in India, China and Southeast Asia. Bridal demand is also forecast to increase 60% globally by 2040.
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On the supply side, global diamond production looks set to peak by 2030 then steadily decline as existing diamond mines become depleted. No major new kimberlite pipes have been discovered in years as most surface sources have already been extensively mapped and mined.
This looming imbalance between rising diamond demand and tightening long-term supply has most analysts predicting diamond prices will continue escalating.
That‘s great news for shareholders of the world‘s largest publicly-traded diamond mining companies profiled below. While many smaller miners have fallen by the wayside over the years, the top diamond majors have prospered from their scale, high-margin mines and domination across the diamond pipeline from mining to sales.
Let‘s dig deeper into the 10 leaders making billions in revenue supplying the global diamond market…
1. Anglo American: Diamond Goliath Generating $27.6 Billion
Headquarters: London, UK
Ownership: Publicly-listed company (LON: AAL), largest shareholders include Public Investment Corporation, BlackRock, The Vanguard Group
Leadership: Outgoing CEO Mark Cutifani, Incoming CEO Duncan Wanblad
When it comes to diamond mining supermajors, no company comes close to Anglo American in terms of its global reach, diversified mining portfolio and staggering revenues.
Founded in 1917 by Sir Ernest Oppenheimer, Anglo American has interests spanning platinum group metals, iron ore, copper, coal and more. But a crown jewel asset is its 85% stake in legendary diamond leader De Beers.
While other major diamond miners saw revenues decline up to 20% during COVID in 2020, AngloAmerican used its vast size and operational leverage to keep 2020 revenue nearly flat at $30.9 billion. Then in 2021 as the economy reopened, total company revenue soared to $41.6 billion—the highest ever.
Beyond its controlling De Beers stake, Anglo American owns Boart International specializing in mining lower grade diamonds used in abrasive power tools and drilling equipment.
Thanks to its unparalleled market share across the diamond pipeline from mining to sales, Anglo American will likely retain its place as the world‘s largest diamond mining group for decades to come.
Financials:
- 2021 Revenue: $41.6 billion
- 2020 Revenue: $30.9 billion
- 5-Year CAGR: +15.2%
Operations: 400+ locations globally across all mining assets
Diamond Sales: Over $5 billion worth of rough and polished diamonds sold by DeBeers in 2021
Sustainability: Massive investments across operations to become carbon neutral by 2040
2. Rio Tinto: Global Mining Giant Generating Over $4 Billion from Diamonds Alone
Headquarters: London, UK
Ownership: Publicly-listed (LON / NYSE: RIO), largest shareholders are BlackRock, Capital Group, Chinese state-owned companies
Leadership: CEO – Jakob Stausholm
While Rio Tinto earns the vast majority of its revenue from iron ore and aluminium, the mining conglomerate is also one of the world‘s largest diamond producers currently supplying over 20% of global rough diamond carats…
3. ALROSA: Russia‘s Diamond Monopoly Controlling Over 28% of Global Supply
Headquarters: Mirny, Eastern Siberia, Russia
Ownership: 33.02% Russian Federation, 8% Republic of Sakha, remaining publicly listed with key shareholders incl. Andrey Zharkov, United Company RUSAL
Leadership: CEO Sergey Sergeyevich Ivanov, Supervisory Board Chairman Vyacheslav Shpurov
4. De Beers: Over 130 Years of Diamond Domination But Challenges Lie Ahead
Headquarters: Johannesburg, South Africa
Ownership: 85% owned by Anglo American, 15% Government of Botswana
Leadership: CEO Bruce Cleaver, Outgoing Anglo American CEO Mark Cutifani
No diamond enterprise has played a more central role in the entire history of diamonds than De Beers…
5. Debswana Diamond Company: Botswana Partnership Producing Over $4 Billion Worth of Diamonds
Headquarters: Gaborone, Botswana
Ownership: 50% Government of Republic of Botswana, 50% De Beers
Leadership: Managing Director Mmetla Masire, Debswana Board Chairman Neo Moroka
The vast diamond mines across Botswana wouldn‘t run without Debswana Diamond Company…
6. Petra Diamonds: Turnaround Story Now Polishing Record Revenue
Headquarters: St Helier, Jersey
Ownership: Publicly-listed company (LON:PDL), key shareholders include Public Investment Corporation, Dimensional Fund Advisors, BlackRock
Leadership: CEO Richard Duffy, Chairman Peter Hill
No list of the world‘s largest diamond mining companies would be complete without mentioning Petra Diamonds…
7. Lucara Diamond: Small Miner Making Big Profits from Huge Gems
Headquarters: Vancouver, Canada
Ownership: Publicly-listed (TSX: LUC), major shareholders include William & Son Ltd (25%), Zebra Holdings & Investments (14%), Dominion Diamond Mines (11%)
Leadership: CEO Eira Thomas, Chairman Lukas H. Lundin
Proving big things can come in small packages, Lucara Diamond operates a single mine – the prolific Karowe Mine in Botswana – yet has managed to unearth five 300+ carat diamonds over the past decade…
8. Dominion Diamond Mines: Revitalizing Two Legendary Diamond Mines
Headquarters: Toronto, Canada
Ownership: Privately-held by The Washington Companies (owns 97%)
Leadership: CEO Patrick Evans, Executive Chairman Dennis Washington
Dominion Diamond Mines proved there are still profits to be made from two of the most fabled diamond mining locations on Earth – Ekati and Diavik Mines…
9. Gem Diamonds: Small Player Punching Above Its Weight
Headquarters: London, UK
Ownership: Publicly-listed (LON: GEMD), major shareholders include New Smith Capital Partners, Schroders
Leadership: CEO Clifford Elphick
Though one of the smaller miners on this list, Gem Diamonds has carved out a lucrative niche operating mines extremely rich in high quality diamonds…
10. Murowa Diamonds: Specialist Miner Privately Owned by Rio Tinto
Headquarters: Harare, Zimbabwe
Ownership: 78% owned by Rio Tinto, 22% ownership by Government of Zimbabwe
Leadership: Managing Director Dan Chatora
Last on our list of top global diamond miners is actually the pioneering company that kicked off Rio Tinto‘s diamond mining endeavors back in 2004…
Consolidation Continues Among Largest Diamond Miners
The diamond industry has witnessed frenetic merger and acquisition activity between the largest miners (especially De Beers and Anglo American) acquiring promising mines or junior diamond companies.
Consolidation lets major players extract synergies across operations while squeezing out excess diamond supply that might erode profits.
Rio Tinto helped spark the latest wave of M&A with its 2019 sale of its Argyle diamond mine in Australia to focus on just two core diamond assets. Meanwhile in late 2021, Lucara Diamond acquired Clara Diamond Solutions and a promising greenfield exploration project in Sweden.
Many analysts now expect a new round of explosive M&A over the next 24 months that will reshape list of the world‘s largest diamond companies.
Key Takeaways From Following the Diamond Mining Money Trail
In investigating these 10 mammoth miners generating billions in diamond profits annually, a number of key themes emerged:
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Consolidation marches onwards: Merger mania will likely continue as largest players seek to snap up promising mines and squeeze out excess capacity
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Pricing power remains: Though no longer the monopoly it once was, De Beers still has an unmatched ability to keep rough prices high during periods of strong demand
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Quality over quantity: Size matters less and less in modern diamond mining versus finding exceptionally pure, gorgeous large gems with a compelling narrative
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Divide deepens: A widening gulf separates the top 10 miners aggressively investing in expansion and next-gen technology from struggling junior companies
While lab-grown diamond production ramps up quickly, consumer demand for exclusive natural diamonds shows no signs of fading especially among American and Asian buyers.
That bright long-term outlook will continue driving the profit engine for the world‘s leading diamond miners. Their shareholders hope these companies keep digging up both impressive diamonds and stock returns for many years to come.
