Diamond Mining

Where Diamonds are Mined

Argye mine located in the Kimberley region in the far north east of Western Australia. Owned by Rio Tinto, this mine is the world’s largest single producer of volume of diamonds. However, due to low proportion of gem quality diamonds it is not the value leader. It does produce 90-95% of the world’s supply of pink diamonds.

Diavik is also owned by Rio Tinto, located in Canada it is a very large mine. It is located north of Yellowknife and south of the Artic Circle on an island. The island is connected by an ice road. It is also an important part of the regions economy employing more than 700 people and producing more than 8 million carats annually.

Ekati diamond mine is owned by BHP Billiton and located south of the artic circle in the Northwest Territories of Canada. The Ekati is Canada’s first operational diamond mine. Diamonds mined here are sold under the Aurias trade name Authenticity is verified through CanadaMark service. CanadaMark service is also owned by BHP Billiton Diamonds, Inc.

Baken diamond mine is located along the lower Orange River in South Africa. It is owned and operated by Trans Hex. The average size stone for 2004 was 1.29 carats. In 2004, this mine produced a 78.9 carat D color flawless diamond that sold for more than 1.8 million dollars (US), as well as a 27.67 pink diamond that was sold for over 1 million US dollars.

Merlin is the second of only two diamond mines in Australia. No longer operating it was owned by Rio Tinto and sold to Striker Resources, who has explored the possibilities of reopening the mine.

Orapa is the world’s largest diamond mine. It us located 240 Km west of Francistown. The mine is owned by “Debswana” which is a partnership between DeBeers and the government of

Botswana. This mine operates 7 days a week. It maintains pre primary and primary schools for its employee’s children. There is also a 100 bed hospital and game park. This mine began production in 1971 and is the oldest mine owned by the Debswana Company.

The Premier mine located in Cullinan, South Africa produced the largest gem diamond ever in 1905. The Cullinan Diamond weighed 3,106.75 carats. This mine also produced the Golden Jubilee diamond which weighed 545.67 carats. This mine is owned by the De Beers Company and was renamed The Cullinan Diamond Mine in 2003 in celebration of its centennial.

Diamond Cut

How Diamonds Are Cut

In their most natural form, diamonds are – well – quite ugly. They have no luster or shine, and in fact, look like nothing more than broken glass. A diamond must be cut, and then polished before it actually becomes a thing of beauty.

Diamonds are cut with saws, into round shapes. From the rounded shape, other shapes may be cut, such as heart shapes – but the shape is less important than the quality of the cutting that is being done. If the diamond is poorly cut, it will lose light, and it will not sparkle and shine very well. Each facet of the diamond must be carefully cut into the geometrical shapes that allow the diamond to sparkle and shine, then the entire diamond is cut into a specific shape, such as an emerald cut or a princess cut diamond.

Once the cut is done, the diamond is put into a dop, which resembles a cup with another diamond – only a diamond is strong enough to smooth the edges of another diamond. Once the diamond has been cut and shaped, and had the edges smoothed in the dop, it is polished on a scaif or a diamond polishing wheel.

Is There Any Cheap Diamond?

How Diamond Prices Are Determined

Pricing most products is quite easy. Determine how much it costs to make the
item, how much it costs to market that item, and then mark it up by 15 – 30% or more.
Simple, right? Well, pricing diamonds isn’t quite that simple. There are many factors
that are considered when diamonds are priced.

Diamond prices are determined first by adding the cost of the rough diamond, the
cost of cutting the diamond, and all other costs necessary to turn the rough diamond
into a marketable diamond. Depending on the importance of the diamond, and independent company may be called in to certify the grade of the diamond based on color, cut, clarity, and weight.

At this point, the diamond becomes more expensive each time it changes hands, until
it finally reaches a retailer, where the price is raised a bit more. Before reaching the
retailer, however, the diamond must travel from the mine, to the cutter and polisher, to
the independent grading company, and then to the Primary market. Once it has
reached the primary market, it will be purchased by diamond dealers and
wholesalers, and from there it will be sold to retailers.

As you can see, the earlier you can purchase a diamond in the process, the lower the cost
of the diamond will be – but not the value. The value is based on what the diamond will
sell for in the market place – through a retailer.

If you own a diamond, and you have no idea how much it is worth, you can have it
appraised, but the appraisal may not be accurate. You will be better off obtaining a
certificate through GIA – Gemological Institute of America. With the information on this
certificate, you can use a cutter’s guide to accurately determine what your diamond is
worth.

There are also many diamond price calculators available. These can be found
on the Internet, and many diamond dealers use these as well. You must realize, however,
that before you can accurately price a diamond, without a Diamond Grade Report,
you need to know quite a bit about diamonds, such as different cuts, clarity, color, and weight
– and how each of those aspects adds to the value of a diamond, or decreases the value of
the diamond as the case may be.

Again, you will be better off if you get a Diamond Grading Report on the diamond,
and use that information to look up the price in one of the guides that the diamond cutting
industry uses. This will give you the most accurate value of the diamond in your
possession, or of the diamond you are considering purchasing.