SURAT/LUANDA (Commodity Online): Demand for diamonds on the world market will make it possible to double production by 2020, due to a recovery of the US economy and the needs of countries such as China and India.
Doubling of production would be a result of a rise in China's market share to 10 per cent and increasing demand from India by 2015, as well as from retailers and long-term acquisition contracts.
According to analysts, current world diamond production was 163 million carats and the value of production was an estimated US$12.7 billion.
Lack of top quality diamonds, which could lead to some price instability in the long term, and urbanisation forecasts in emerging economies, which would lead a lot of consumers to move into middle class income brackets, will help boost the production.
In another development, Zimbabwe has rejected a European monitor to oversee the exports of diamonds from its controversial Marange fields to ensure they are not blood diamonds. It has unilaterally appointed a Namibian instead.
Now the World Diamond Council in New York has warned that if a generally acceptable monitor is not agreed upon soon, it will call for Zimbabwe's suspension from the Kimberley Process Certification Scheme which regulates sales of rough diamonds to ensure they do not finance conflicts.
Zimbabwe came under fire from several international human rights groups recently after informal miners digging in alluvial diamond fields in the Marange region of eastern Zimbabwe for the past three years accused President Robert Mugabe's security forces of atrocities against them.