The Coming Scarcity of Canadian Diamonds - July 30th, 2025
A strong recovery in diamond prices is necessary if any Canadian diamond mines are going to be profitable. Al Cook, the CEO of De Beers, suggests that diamond mining in Canada could end by 2031. Low prices in both rough and polished diamond markets are challenging the worldwide diamond mining industry.
The Ekati mine, the first and largest Canadian diamond mining project, has temporarily shut down about 50% of their operations because “the low prices for diamonds (has) made the work ‘sub-economic’”. It is obvious that when diamonds cost more to mine than they can be sold for, they will be left in the ground. This fact clearly demonstrates that natural diamond prices are not controlled or set arbitrarily, they have a practical base price. Diamonds cannot be sold at a loss forever. The base price of all natural occurring products distinctly separates them from manufactured products.
Diamond mining is one of the largest employers in the Canadian Northwest Territories, just as they are in many parts of Africa. Diamond mining has contributed greatly to the economic viability of every region where they have been recovered. The three largest Canadian diamond projects will reach the end of their productive lives within the next five years, or perhaps even earlier, if natural diamond prices do not recover. The positive effects of diamond mining on local populations have dramatically changed the lives of millions of people, for the better. There is a huge distinction between a thriving local population, and a football field crammed with banks of computer run machines turning out quantities of mass produced consistently calibrated products.
In 2024 the three main Canadian diamond mines lost a total of three hundred million dollars. Canada is a land of bountiful resources, and the loss of three diamond mines is significant but not as serious a problem as in parts of Africa, where governments are supporting their diamond industries, because diamonds have taken these countries out of third world poverty. African countries are being crushed by the loss of revenue from the falling prices of their diamonds.
Natural Canadian diamonds will always have a place in the hearts of Canadian consumers All natural diamonds are currently being re-appreciated as their manufactured counterparts depreciate. Natural diamond course correction will occur over the next several months. Retailers, who are worried about the further depreciation of manufactured diamonds, can facilitate the natural diamond correction by helping to educate their clients about the benefits of natural products on local populations and by explaining that manufactured products are not rare, depreciate in price as technology improves, and only benefit the few owners of the machines that produce them.
The supply of natural Canadian diamonds will be severely diminished soon, as our mines reach the end of their productive lives. Canadian diamonds are a treasured and truly limited local luxury resource. Their rarity and worth will increase as their supply decreases.
