The industry will grow as diamond output increases
Melbourne, Australia (PRWEB) February 10, 2013
Australia is a major producer of diamonds and although most of its output is classed as cheap gem or industrial grade, it also mines high-value fancy pink and yellow diamonds. The Diamond and Gemstone Mining industry is expected to generate revenue of $578.3 million in 2012-13. This is compared with $806 million in 2007-08, yielding a fall of 6.4% per year. According to IBISWorld industry analyst M. Williams, “the decline reflects substantially lower output and a fall in diamond prices”. Despite the overall decline, industry revenue is expected to increase by 34.3% in 2012-13 on the back of higher output and prices. An anticipated decline in the value of the Australian dollar will also boost industry revenue in local currency, given that prices are typically denominated in US dollars.
Nearly all industry output is exported, but there are also substantial imports of gem-grade diamonds. Overall, exports typically account for well over 90% of local output, while imports usually meet at least 90% of domestic demand. “Sales from stocks of mined diamonds mean that it is not unusual for export and import shares to exceed 100%”, says Williams. The industry employs about 740 people in 2012-13, paying wages of $89.2 million. The two major companies in the industry are Rio Tinto Plc – Rio Tinto Limited and Kimberley Diamond Company NL.
The Diamond and Gemstone Mining industry’s performance is expected to improve over the five years through 2017-18, as production expands substantially due to new underground operations at Argyle and as diamond prices (in US dollars) continue to gain ground. In addition, the expected easing of the Australian dollar will boost revenue in local currency. Industry revenue is forecast to grow, while rising output and continued cost containment will lift profit.
For more information, visit IBISWorld’s Diamond and Gemstone Mining report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in this industry mine or quarry diamonds and other gemstones.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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