January 19, 16
(IDEX Online News) – The Australian diamond mining industry is expected to decline 13.3 percent in 2015-2016, according to a report on australiamining.com.
In addition to declining oil and gas revenues, diamonds are expected to fall to AUS$380.1 million ($263.2 million), despite a short rally in 2014, which saw revenues jump 24 percent.
According to the Department of Industry, Innovation and Science, in 2013-14 export volumes of Australian diamonds dropped from 12.2 million carats to 10.4 million carats. Australia exports the majority of its diamonds and is, therefore, dependent on global demand. The australiamining.com report claims that while the expected fall in diamond revenues is in line with other mining sectors, Australia has oversupplied the market.
The exit of Kimberley Diamond’s, which in July 2015 closed its Ellendale Mine and entered it into voluntary administration, is also expected to negatively affect industry revenue.
