It is proving very expensive to sustain the belief that diamonds are forever, as recent developments in the industry indicate.
Almost sixteen years ago, when then the late Louis Nchindo, the then managing director of Debswana, a partnership between the Government of Botswana and mining giant, Debeers, warned during a mining conference that diamond mining was going to become expensive, some thought he was being alarmist. It is human nature perhaps not to face that fact any bubble that is being enjoyed will inevitably come to a halt at some point.
AFP reports that De Beers is spending $2bn tunnelling beneath a vast open pit mine to access diamond rich rock at Venetia mine, which is located close to the border with Zimbabwe and Botswana.
This has necessitated the development construction of a whole new mine to reach diamonds more than 1000 metres below the ground.
De Beers is only confirming a global trend, where diamond companies, are investing billions to access diamond bearing rock. As Peter Major, mining specialist at Johannesburg-based Cadiz Solutions, told AFP: “Across the globe, the big diamond deposits have been exploited, and I don’t see any big new mines coming online.”