The global rough diamond output is expected to reach 120 million carats this year compared to a high of 150 million carats in 2017, according to an independent diamond analyst.

Global rough diamond output fell by about 20% to 111.4 million carats last year due to the COVID-19 pandemic.

Addressing the Angola International Diamond Conference in Saurimo, Paul Zimnisky said global output will get a boost as Angola prepares to commence production at the new Luaxe mine.

“Luaxe will pump up supply as it is the latest source of diamonds in the world,” he said.

Alrosa and Catoca discovered the Luaxe pipe in 2013.

Catoca, in which Alrosa owns 41%, currently holds a 50.5% stake in Luaxe. Endiama and Alrosa each also hold another 8% in Luaxe.

Meanwhile, Zimnisky said that diamond jewellery demand fell between 15 and 20% in 2020, but a stronger recovery was seen in the second half of 2020 led by the US and China.

He said that the recovery continued this year and will likely continue unabated.

Zimnisky said the global economy was awash with liquidity and a widening wealth gap that favoured luxury companies.

The diamond analyst said China had been the fastest-growing end market in recent years buoyed by robust growth in what he dubbed consumer class.

“There is more domestic consumption in China and more recently the global lockdown and travel restrictions halted Chinese spending abroad,” he said.

Zimnisky said China grew its jewellery stores from 1300 in 2011 to 5000 this year.

“They even opened new stores during the pandemic, and this shows the growth of demand in the country,” he said.

Mathew Nyaungwa, Editor in Chief of the African Bureau in Saurimo, Angola, Rough&Polished