Type II white diamond unearthed in Letšeng mine
A Type II white diamond has been unearthed in Letšeng mine in Lesotho. Gem Diamonds made the discovery marking the fifth diamond over 100 carats recovered this year alone.
Type IIa diamonds like this are prized for their purity, containing minimal or no nitrogen atoms, enhancing their value and appeal. The latest discovery is a 118.74-carat diamond. Letšeng’s reputation as one of the world’s foremost diamond mines is further solidified by its remarkable elevation, sitting at 3,100 meters above sea level.
Challenges
However, despite its success, the diamond industry as a whole faces challenges. Weak demand for diamond jewelry in key markets like the US and China, coupled with the growing popularity of lab-grown diamonds, has put pressure on traditional diamond miners.
The rise of lab-grown diamonds is a relatively recent phenomenon. Just a few years ago, they were a negligible factor in the market. However, their share has grown significantly, reaching over 10% of the global diamond jewelry market by last year. This shift has impacted the economics of diamond mining, particularly for smaller to medium-sized companies like Gem Diamonds, Lucara, and Petra. Despite their focus on unearthing high-value stones, their market capitalizations pale in comparison to the potential value of their discoveries.
The industry’s challenges reflect broader shifts in consumer preferences and technological advancements. However, notable discoveries like the recent find at Letšeng remind us of the enduring allure of natural diamonds and the ongoing significance of traditional mining operations in the global diamond trade.
