We can all agree with De Beer’s marketing slogan, “a diamond is forever.” Because they pretty much are. Diamonds created from a single element, carbon, are the hardest natural substance on earth. It takes a diamond to scratch a diamond.
While diamonds do last forever, apparently diamond mines don’t. Do diamonds become mined out in their great crevasse? Did it become too dangerous to keep digging deeper, or was there something altogether different that brought the curtains down on a diamond mine?
Sourcing Splendor
Long ago, the world’s only diamond mines were in India. Early Sanskrit writings spoke of diamond mining in the Golconda region around 300 BC. It remained the sole supplier of diamonds for the next 1,000 years. In its 16th century heyday, Indian diamond mines turned out 50,000 to 100,000 carats annually. That’s miniscule compared to modern diamond production reaching 100 million carats per year.
Diamond’s collectability amongst European royalty really took off by the 13th century. The shiny stones displayed a greater light-show than did colored gemstones for the gentry who flaunted them as status symbols at candlelit soirees.
New diamond deposits discovered in the 18th and 19th centuries widened their availability, making them more accessible to those (usually the nouveau riche) with vast discretionary spending. First in Brazil, and later it was South Africa which substantially broadened the availability of diamonds. Even with their increased accessibility, women reserved wearing their diamonds strictly for the evening – as it was considered vulgar to parade one’s wealth in the daytime.
Primary diamond deposits share a common characteristic wherever they are found. Ancient terrain with kimberlite and lamproite pipes all point to diamonds below the earth’s surface. It’s a misconception to think that today, diamonds are mined primarily in South Africa. 21st century mining operations are in disparate places like Canada, Siberian Russia, several African countries, and Australia. But they are all considered to have a finite lifespan.
The End of An Era
While diamond mines harvest year after year, they definitely are not forever. The widespread coverage of the Argyle Mine closure in 2020 in western Australia attests to that. The celebrated mine produced nearly 90% of the world’s annual yield of fancy pink and red diamonds, along with other rare colors like blue. But after nearly 4 decades turning out the most exciting crystals, it shuttered its doors forever. Workers went home and the long task of rehabilitating that land has commenced. But why would this mine close after giving the world these rare and exciting fancy color diamonds? Why would any productive mine close?
After 37 years of hauling up diamonds that energized the most sophisticated diamond collectors, this bustling mine fell silent. Some analysts claim that approximately 18% of all diamonds in circulation today came from that mine alone. That’s a huge number, but Argyle was a prolific producer.
Not all diamonds mined in Argyle were of exceptional quality, however. Estimates figure about 5% of Argyle’s mined diamonds were gemmy, with pinks comprising 1% of its entire output. But since Argyle was the main source of pink diamonds, that’s still significant. Despite Argyle’s record, there were challenges that remained unconquered. Soaring operational costs coupled with a sluggish diamond market at the time, forced Argyle mines to cease operations.
While the diamond market does wane sometimes, another reason prompting its closure was the depth of the mine. After 37 years of excavation it simply became untenable. Drilling costs rose, while profits declined until the numbers didn’t make sense. With no alternative sources for fancy pink diamonds, their prices have since skyrocketed as collectors grapple with its finite supply.
Demise of an Era
Argyle’s closure did not set a precedent within the mining industry. Mines have closed previously after years of productivity. For instance, the historic Kimberley Mine sprang from the discovery of a single diamond in Kimberley, South Africa in 1867. That one diamond drew ambitious Europeans to South Africa lured by the prospect of finding their fortune in diamond mines. Some did just that. Entrepreneurs like Cecil John Rhodes and Barney Barnato and others, amassed fortunes at Kimberley Mine.
After 43 years of operation, on August 4, 1914 the energetic cacophony abruptly halted. By then, 22 million tons of rock had been excavated, producing some 14,504,566 carats of diamonds, earning it the title of the largest hand-dug excavation on earth.
Kimberley directors determined that the mine had become uneconomical to operate once it reached a depth of 1,083 meters (3,553.15 feet) without producing more rough. Its closure signaled the demise of a pioneering chapter in South Africa’s history.
Once mining operations ceased, the open pit became a tourist attraction. By the 1960s, a gathering of relics, old buildings and various memorabilia became organized into a proper museum and tourist attraction. By 1971, its centenary celebrations took place there with the Diamond Hall being one of its main attractions. In the early 21st century, De Beers invested R50 million ($3,406,020.07 US) to develop the area (now called the Big Hole) into an updated tourist destination with “a lasting legacy for the people of Kimberley.”
Lifespan of Mines
So, it turns out that mines do have a life expectancy, sometimes contemplated even before the first ton of ore is removed from the site. Their estimated date of demise is determined by continued costs of operation versus the yield it produces, and the wisdom and safety of digging further into the earth.
An eye-opening report published by Fancy Color Research Foundation (FCRF), in 2019 says the most overlooked fact is that the world’s diamond mines are rapidly depleting. Within a quarter of a century, it maintains, most of the 45 leading diamond mines operating now will cease to exist, predicting the last diamond to be unearthed in 60 years. This will impact diamond prices, with fancy color diamond prices soaring exponentially as supplies decline.
“By the time your grandchildren buy their first diamond, most mines will have reached the end of their life cycle and most diamonds will be sourced from the second-hand market,” the report points out.
Once all mines have been depleted, the report adds, the era of unearthed rough diamonds will be over. “No new ‘mega-mine’ is expected to be found in the foreseeable future; If one is found, it will begin operations only at the end of this century – at best.”
