Australia is one of the largest diamond producing countries in the
world in terms of quantity. The beginning of diamond output in West
Australia (in 1982) marked the entrance of an advanced country, the
first modern and democratic country into the diamond producing
community. In contrast to Africa and Russia, in Australia the government
does not have unrestricted access to diamond resources. The government
does not claim any ownership, full or otherwise of the diamond mines,
and does not retain profits from overseeing the marketing of diamonds.
Nonetheless, the Australian government does have the authority to
authorize marketing arrangements, or guide towards methods with
additional value. Therefore, in the
Australian diamond industry
there is not much room for corruption or political uncertainty.
Nevertheless, the government's lack of involvement in diamond mining
does not guarantee an entirely smooth path. The history of diamonds in
Australia serves as an intense political issue because diamond mines are
also located in Aubergine lands (natives). In recent years, the
Aubergine's objections and concerns have influenced the occurrences in
Australia's political landscape. The power to legislate laws in terms of
Australian natural resources is in the hands of the regional
government. Although the federal government has no authority in this
area, some of its rules clash with the activities of the mine, in a way
that cannot be ignored.
In 2005 the three main Australian diamond mines - Argyle, Ellendale
and Merlin - produced more than 32.9 million carats. In the same year,
Australia exported raw diamonds at a value of $529 million at the
average price of $16.26 dollars a carat.
The output of the largest diamond mine in Australia, Argyle, is
comprised of 5% diamond gems, 70% near-gems and 25% industrial diamond
quality gems. 72% of the diamonds produced in Argyle are brown diamonds,
while about 27% are colorless diamonds and diamonds in various shades
of yellow, and less than 1% of Argyle diamonds are in shades ranging
from red to pink diamonds.
The open mining bore in the Argyle mine was expected to be completed
by 2008, but the company decided to switch to an underground diamond
mine, thereby prolonging the mine's life by about ten years. It is
predicted that by 2011 the mine will reach its full output, and by 2018,
17 million carats will be produced in the Argyle mine per year.
According to sources in the West Australian government, an additional
project (called Phase 2), will prolong the life of the diamond mine to
2024. The transfer to an underground mine requires an investment of $910
million.
Between 1982 and 1996 most of Argyle's production was sold to the DTC
(then called the CSO). Afterwards Argyle detached itself from the
single channel marketing front and began marketing its output for
itself.
The second diamond producer in size in West Australia is Kimberley,
which operates the Ellendale mine. Since the mine began in mid 2002, the
company produced and sold 396,568 carats worth $70 million. The mine
has the potential to reach an output of $121.8 million per year until it
is fully exhausted in 2014.
The Merlin diamond mine has passed through many hands since it first
opened at the end of 1998. It is currently owned by North Australian
Diamonds Ltd. Unfortunately, the diamond output from Merlin is irregular
and inconsistent.
Most of the country's diamonds are exported. The rough diamonds
produced in Australia are usually slightly below world standards,
meaning that despite its leading status as a pro.
