Diamond Industry

2155 Words9 Pages
Industry Analysis
Diamond Industry
(Gem Based diamonds)

The Diamond industry is essentially broken up into 3 segments: 1. Industrial Diamonds—natural and synthetic diamonds that are used in a wide range of manufacturing processes for their physical properties. 2. Jewelry Diamonds—rough diamonds cut for use as gemstones in jewelry. 3. Investment Diamonds—high-quality large gemstones, often with special characteristics, purchased for investment.

The Jewelry and Investment segments together represent 83 percent of the value of rough diamonds produced. The industry is controlled as a monopoly by the De Beers diamond company which operates from South Africa and London. The wholesale trade and cutting of diamonds is limited to only
…show more content…
Alrosa’s sales in 2005 accounted for US$ 2.5 billion, 1.7% growth to 2004.

BHP Billiton

BHP Billiton describes itself as the world’s largest mining company having 38,000 employees working in more than 100 operations in approximately 25 countries. In fact, the company does not concentrate on diamond production but also on iron, coal, petroleum, bauxite, aluminium, manganese and copper amongst other materials. BHP Billiton was formed in 2001 through a merger of the Australian Broken Hill Proprietary Company (BHP) and the British Billiton that had extensive operations in South Africa.
The Australian BHP operates 60 % of the business and the British Billton the other 40%. Even though the companies operate as one business with one board of directors and a single management structure, they are listed separately on the stock exchange. The company sales in 2006 accounted to US$36 billion with a growth of 21.3% compared to 2005 and a net income of US$10 billion, 53.1% growth compared to 2005.

Rio Tinto Group

To be a competitor in the diamond industry, a company has to be one of the largest mining companies. Rio Tinto Group falls right behind BHP, they employee over 32,000 employees. The Group's major products include aluminum, copper, diamonds, energy products, gold, industrial minerals (borates, titanium dioxide, salt and talc), and iron. It is strongly represented in Australia and North America (accounting for about 40%
Get Access