Diamond Exports Register an Increase

Diamond Exports Register an Increase

A dramatic increase in diamond exports has been realized since the beginning of 2004. A total of 396,132.37 carats of diamonds valued at US$68,282,702.49 have been exported. This value is 84% more than exports of 2003 (US$37,090,434.74) and 57.6% increase in carats from 251,238.07cts, same period. Price per carats reached US$172 from US$148, same period in 2003.

There are currently ten export licenses holders, but only a handful of exporters seriously contributed to the overall increase in export, with H. M. Diamonds capturing 46% of the total artisanal diamond exports of 362,751.46cts – US$61,184,582.79 and 41% of the total export.

1. H.M. Diamonds - US$28,047,299 - 46%

2. Andre’ T. Hope - US$11,743,542 - 19%

3. Sarahdiam - US$9,081,766 - 14%

4. Kassim Basma - US$7,849,242 - 12%

5. Sima Star Co. (SL) Ltd - US$3,252,277 - 5%

6. Others - US$1,210,456 - 4%

Koidu Holdings

As at 30th June, Koidu Holdings has exported a total 33,381 carats of Kimberlitic diamonds, valued at US$7,098,120. They are expected to do better than this after the mine is developed to its full potential.

Reasons for the increase

Due to better security prevailing in Sierra Leone, large numbers of people have returned to the mining areas, resulting in increased participation in, and the intensification of mining activities.

De Beers introduced a marketing strategy called “Supplier of Choice”. This system reduced the number of sight-holders. A good number of former sight-holders lost their places at De Beers. These now look for their supply of rough diamonds in the open market. This has increased demand for rough diamonds, thus driving up prices in both the international and the local markets.

The rough diamond market has become so insatiable that for several months running now demand has consistently outstripped supply for all sizes and qualities. The Kimberley Process Certification Scheme has created a positive impact on the diamond industry as it is being gradually enforced to the fullest, making it difficult to trade diamonds outside the scheme.

Liberia, the traditional smuggling route is still under UN ban from exporting diamonds. This has reduced Liberia’s ability to create a negative impact on Sierra Leone’s diamond exports.