history of diamonds(1)

8/3/2019 History of Diamonds(1)

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HISTORY OF DIAMONDS

From myths about valleys of diamonds protected

by snakes, to the production of millions of caratsin rough diamonds each year, the history of

diamonds is one of mystical power, beauty and

commercial expertise.

Early History

The first recorded history of the diamond dates

back some 3,000 years to India, where it is likely

that diamonds were first valued for their abilityto refract light. In those days, the diamond was

used in two ways-for decorative purposes, and as

a talisman to ward off evil or provide protectionin battle.

The Dark Ages

The diamond was also used for some time as

medical aid. One anecdote, written during theDark Ages by St Hildegarde, relates how a

diamond held in the hand while making a sign of

the cross would heal wounds and cure il lnesses.Diamonds were also ingested in the hope of

curing sickness. During the early Middle Ages,

Pope Clement unsuccessfully used this treatmentin a bid to aid his recovery.

The Middle AgesDuring the Middle Ages more attention was paid

to the worth of diamonds, rather than themystical powers surrounding them. Due to the

heightened public awareness of the value of

diamonds, mine owners perpetuated myths thatdiamonds were poisonous. This was to prevent

the mineworkers swallowing the diamonds in anattempt to smuggle them out of the mines.

The popularity of diamonds surged during the

Middle Ages, with the discovery of many large

and famous stones in India, such as the Koh-I-Noor and the Blue Hope. Today India maintains

the foremost diamond polishing industry in the

world.


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As the Indian diamond supply dwindled, smallerfinds occurred in Borneo and Brazil, but thesewere not sufficient to meet the ever-increasingdemand for diamonds. The mid-nineteenth

century discovery of diamonds near the OrangeRiver in South Africa sparked the world's biggest

diamond rush, and helped to satiate the world's

increasing appetite for diamonds.

Recent TimesDuring the mid-nineteenth century, diamonds

were also being discovered in eastern Australia.However, it was not until late 1970's, after seven

years of earnest searching, that Australia's

alleged potential as a diamond producer wasvalidated.

On October 2nd 1979, geologists found theArgyle pipe near Lake Argyle: the richest

diamond deposit in the world. Since then, Argylehas become the world's largest volume producer

of diamonds, and alone is responsible for

producing over a third of the world's diamondsevery year.

Indian Diamond Industry

India has always been center stage in the dramatic history of some of the world`s most famous

mesmerizing diamonds. India has been the earliest known source of diamonds. Conversely, today

India is precursor in the gem industry and a world leader in the manufacturing of cut and refined

diamonds. Diamonds used in jewelry worldwide, nine out of every ten come from India.

Diamond industry of the

Indian market is mainly

involved with cutting,

polishing and exporting

diamonds. Diamonds cut

and polished in India are

universally prized, and


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India has emerged as the largest diamond-cutting center in the world. Although India pioneered in

the cutting of small diamonds yet today, its craftsmen are equally skilled at cutting all shapes and

sizes of stones, and even at faceting colored diamonds. Mumbai, Surat, Ahmedabad, Bhavnagar and

many small towns in Gujarat are the main polishing centres of the country. The industry employs

one million people, accounting for 95 per cent of the workforce of the world`s diamond industry.

The Indian diamond industry today is a result of perseverance and hard work. After India became

independent in 1947, for several years, the nation`s economy was in the depression. Several views

for business and commerce opened up as new policies came into place, journey towards progress

and development also began for the diamond industry.

The Indian diamond industry was a scattered cottage industry only three decades ago. Now it

gradually evolved into a modern, mechanized, large-scale operation. Today, with state of the art

laser machines, lathes and diamond-impregnated scaives, most of the medium- and large-sized

diamond factories are well operational.

In the world of jewelry industry, this structured and rapid growth of the Indian diamond industry has

a long-lasting impact. The Indian exports of diamonds increased and in turn it reflected greater than

before in the export of designed jewelry. There is an evident fact that the Indian jewelry designs

have for centuries spell bounded everyone, from the Indian maharajas to the monarchs of faraway

lands.

Indian jewelry was made scrupulously by hand and was traditionally crafted by family jewelers

skilled in a particular style. Large exports directed to the establishment of factories, prepared with

the latest modern machinery. It is the newest methods in the manufacturing process that were

employed. India`s artisans along with their traditional skills dominated contemporary techniques to

provide the world with jewelry that conformed to international standards. There is a new generation

of young designers dominating the world market, apart from a host of established houses that

design the fashion jewelry. Today across India there are several jewelry design institutes,

encouraging fresh ideas and talent.

The Gem and Jewelry Export Promotion Council (GJEPC) is the zenith body of this dazzling and

growing industry. In 1966 the council was set up under the patronage of the Ministry of Commerce

and has helped to form a better understanding between the diamond industry and the government.

The chief function of the council is to develop and promote the export of gems and jewelry from

India and to contribute towards establishing a code of ethics to ensure that fair trade practices are

followed in the jewelry arena.

The Indian diamond industry is again at the doorstep of expansion. In order to enable diamonds to

be brought into the country to be sold, the government has legitimated the setting up of bonded

warehouses. The unsold diamonds can then be exported without any duty or tax. The government is

also constantly slackening its policies. Creating the Export Promotion Zones (EPZ) and Special

Economic Zones (SEZ) in order to help and promote the export of gems and jewelry from the country

is undoubtedly a new step for the betterment of the industry.


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DIAMOND MINE LOCATIONS IN AUSTRALIA

Today, diamonds are mined in at least 20 countries around the

world; the majority of diamonds are found in Australia, Zaire,Botswana, Russia and South Africa.

The Argyle Diamond Mine, the world's largest diamond-

producing mine, is located in the Kimberley Region of northWestern Australia.

Indian Diamond Industry: "Brighter" Times Ahead

To recount the history of Indian diamond industry wouldbe clichd and to reel out the list of sobriquets that it has earned for itself and for the country

may seem redundant. Nevertheless, to understand the industry, its past and present, is acondition precedent if one is to comprehend, prognosticate and chart the way to the future.

As is the case with most other aspects of this nations history, the lines distinguishing factfrom fiction are blurred in the case of diamond industry as well. To add to this, the enormous


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amount of literature available on this topic may resemble a researchers paradise or nightmaredepending upon his or her ability to process data and to put forth meaningful, relevant andusable information.

Hence, lapses in mentioning important facts or inaccuracies in presentation are to bepresumed inadvertent and may be attributed to paucity of time (if such a thing as time exists).

Since this article is meant to give a low down, a brief one at that, on the present state ofaffairs, both through the patent and non-patent route, one has invested efforts in identifyingkey players, Indian and non-Indian. A thorough competitive analysis would have been

possible had there been a useful Indian patent database. The USPTO and the Big patentsIndian database have been relied upon.

Most historians agree that the recorded history of diamond traces its roots to India 30centuries back, when diamonds were valued for their ability to refract light. Ancient Indianscriptures too mention the use of diamonds. According to De Beers, until 1725, India was theonly source of diamonds in the world. Most of us must have heard of the famed Koh-I-Noorand Hope diamonds. (Interestingly, as a kid I remember having read that Koh-I-Noor is theSun jewel of the legendary hero of Mahabharata, Karna which passed into several hands over

aeons to finally become the Koh-I-Noor. It is believed that this jewel, before becoming theKoh-I-Noor, was possessed for a brief while by Nadir Shah, Allaudin Khilji and MaharajaRanjit Singh before moving into British hands.)

In the Second voyage of Sinbad, India has been referred to as the Valley of Diamonds.

Cut to 2008, Indian rough diamonds account for a miniscule 0.1% of world production, withthe industry focussing its energies on diamond processing instead.

However, it should be pointed out that a certain section of the industry is optimistic that Indiastill has a large number of diamond reserves and could once again become a significant

producer with a few initiatives in prospecting. This belief is further emboldened by the factthat the countrys mining statutes were amended in 1994 to allow foreign investment. Ofcourse this would lead us to the issue of Conflict diamonds, which I shall desist fromdelving into since it is not strictly within the scope of this article. For those interested inunderstanding the issue better, details are available here.

Coming back to processing, diamond cutting and polishing comprise processing with Indiabeing the worlds largest processing centre, with a million processors handling over 57% ofthe worlds rough diamonds by value. It is of course common knowledge that Mumbai andSurat are the major processing centres, which we shall see, is reflected in the patents as well.Diamonds constituted 64% of $17.1 billion worth exports by the Indian gems and jewelleryindustry in 2006-07. Cut and polished diamonds formed 10.5% of the total exports fromIndia.

One could go on with the number-crunching, but what is it that these figures communicate tothe reader? Is everything hunky dory with this radiant industry? If yes, is the industrydoing something to sustain the momentum so that it reaches the very top of the market?Where do patents come into the picture?

From dominating the market for moderately big diamonds, India has moved into the marketfor big diamonds. The former was earlier Israels forte and the latter is Belgiums playgroundwith India making deep inroads in this segment.Theres one factor which could upset Indias


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apple cart and this factor we better not ignore-China. Low labour costs and skilledworkmanship propel Indian exports; however China holds the key to becoming the marketleader- both cheap and quality labour combined with expertise in technology. China usesautomatic machines with India relying on archaic semi-automatic machines.

Though China isnt a force to reckon with in the diamond industry, it wont be long before it

catches up. In fact, the Chinese have already mastered the art of making small diamonds.Further, Indian industry relies heavily on exports for its revenues, whereas the Chinesedomestic market is absurdly enormous thanks to increased spending power of the Chinese.This explains why major players, including India, are setting up shop in China.

In the light of these developments, it is heartening to note that Indian industry is becomingmore tech-savvy. The Indian Diamond Institute has been strategically set up at Surat to

promote research and development and to assist the industry. It must be understood that inmost places diamond cutting and polishing are professions which certain families have

practiced for generations together and may fall under traditional knowledge as well. Likemost forms of traditional knowledge, skilled artisans in this industry are in short supplywhich further strengthens the case for increased reliance on improved technology. (This does

not, however, mean that steps to preserve and promote traditional skills must be neglected).According to an article in the Economic Times, the Indian diamond industry is making rapidstrides in the area of technology. It says, the industry now boasts of:a software that maps inclusions and flaws in diamonds, equipment that generate cutting

solutions with estimated yields, green lasers that doesnt leave pronounced burn marks on thediamonds, hi-tech diamond calculator for gauging the light, lustre and fire of the stones and

fully automatic polishing machines.

It has been reported that the industry investment is to the tune of Rs.700-1000 crores in just afew years. Some of the big players, who shall feature in the patents as well, are Israel-basedSarin Technologies Limited and OGI Systems Limited, India-based SahajanandTechnologies, Bombay Mill Manufacturing, Lexus group, Dimexon Diamond Limited etc.Consequently, one felt that a patent search was warranted to understand if this enhancedemphasis on technology has translated into increased IP protection. As mentioned earlier, Irelied on Big Patents for information and the figures are as follows:

Number of Indian patents Issued: 88Number of Indian Patentees: 18Number of non-Indian Patentees: 70

By Indian patentees, one refers to home-grown industries and entities of Indian-origin.Among Indian patentees, Arvindbhai Lavjibhai Patel features prominently with 5 patents tohis credit, most of which are on laser diamond sawing machine. One is not sure if this

Arvindbhai Lavjibhai Patel is the Arvindbhai Patel of Surat-based SahajanandT

echnologiessince the patent makes no mention of Sahajanand Technologies. M/s. Shairu Gems ofMumbai are next with 2 patents to their credit. The rest of the patents are distributed among

National Mineral Development Corporation, Premkumar Kothari, Venus Jewels and 7others.(Premkumar kothari, it appears, heads Fine Jewellery, which also has a couple of US

patents to its credit.)

Among non-Indian patentees, Gersan Establishment from Liechtenstein leads the pack with 9patents, followed by Element Six of USA with 8 patents. Homeomi Brains from Japan has 5


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patents to its credit with 3 from De Beers, the South African behemoth whose star is on thewane. Carnegie Institution of Washington too has 4 patents followed by 3 of DiamondInnovations, 2 each of Gemological Institute of America, Intel Corporation and GeneralElectric Company. These players are followed by 30 other players with a patent each, most of

who are from the US, Belgium, Japan and Israel.

It must be understood that of these patents, a few concern the use of diamond in tool makingindustries and other such applications. So strictly speaking they may not contribute to ourunderstanding of the technological advancements in the diamond processing industry, butmay still be of use to know the demand for diamonds in non-conventional applications.Surprisingly, some of these patents sound like business method patents. I reiterate that thisinference may not be accurate since it is the product of a cursory perusal and not a meticulousanalysis. In addition to these patents, it was reported that the Gitanjali group of India hasapplied for 25 patents in diamond cutting.

Next, one decided to search for US patents in diamonds by Indian applicants and the searchthrew up the following results:

Number of US patents by Indian Applicants: 6Of these five are held by Fine Jewellery owned by Prem kothari and one by Council forScientific and Industrial Research (CSIR).

These figures indicate that Indian players are becoming increasingly conscious of the edgewhich comes with technology. One hopes that this enlightened approach pervades and

percolates to drive the Indian industry to dazzling heights.

What Is A Diamond

Diamond is a native crystalline carbon that is the hardest known mineral. It is usually

nearly colorless.

When transparent and free from flaws it is highly valued as a precious stone.

It is also used industrially, especially as an abrasive. Crystallized carbon produced

artificially is also called diamond.

The name diamond is derived from the ancient Greek adamas ("invincible").

Their hardness and high dispersion of light make diamonds useful for industrial

applications and jewelry.

Diamonds make excellent abrasives, because they can be scratched only by other

diamonds, or man-made materials, which also means that they hold a polish


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extremely well and retain their lustre.

They have been treasured as gemstones since their use as religious icons in ancient

India. Thier usage in engraving tools also dates to early human history.

The popularity of diamonds has risen since the 19th century because of increasedsupply, improved cutting and polishing techniques, growth in the world economy, and

innovative and successful marketing campaigns.

Gem diamonds are commonly judged by the four Cs: carat weight, clarity, color,

and Cut.

Approximately 130 million carats (26,000 kg) are mined annually, with a total value of

nearly USD $9 billion, and about 100,000 kg of synthetic diamonds are

manufactured annually.

49% of natural diamonds originate from central and southern Africa, although

significant sources of the mineral have been discovered in Canada, India, Russia,

Brazil, andAustralia. They are mined from kimberlite and lamproite volcanic pipes,

which brought to the surface the diamond crystals from deep in the Earth where the

high pressure and temperature enables the formation of the crystals. The mining and

distribution of natural diamonds are subjects of frequent controversy such as with

concerns over the sale of conflict diamonds (aka "blood diamonds") by African

paramilitary groups.

Material Properties Of Diamond

Diamond is a form of carbon (and allotrope of carbon). It is the hardest naturally-

occurring mineral.

Diamond is the hardest, the least compressible and the best thermal conductor

among all natural materials. It is also chemically inert to most acids and alkalis.

These exceptional properties make diamond valuable both intrinsically as a gem, for

usage in industrial applications, and as a tool for scientific research. Although it isdecidedly rare, it actually consists of one of the most common natural elements:

carbon.

Diamond is so strong because of the shape formed by the carbon atoms. Each

carbon atom has four other carbon atoms joined to it with covalent bonds. Its

toughness is only fair to good because of structural weaknesses. It is transparent to

opaque, optically-isotropic, 3D-crystalline carbon.


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Although its precise tensile strength is unknown, its theoretical intrinsic strength has

been calculated to be between 90 and 225 GPa, depending on the crystal

orientation.

At a temperature of 1325C, a pressure of 50000 kg/cm2 is required to growdiamond. This extreme pressure corresponds to the weight of the Eiffel tower (9441

tons) on your hand. Without this pressure, graphite instead of diamond forms.

Diamond has a high refractive index (2.417) and moderate light dispersion (0.044),

properties which are considered carefully during diamond cutting and which

(together with their hardness) give cut diamonds theirbrilliance and fire.

Diamonds are classified into two main types and several subtypes, depending on the

nature of crystallographic defects present.

Trace impurities substitutionally replacing carbon atoms in a diamond's crystal

lattice, and in some cases structural defects, are responsible for the wide range of

colors seen in diamond.

Most diamonds are electrical insulators but extremely efficient thermal conductors.

The specific gravity of single-crystal diamond (3.52) is fairly constant.

Contrary to a common misconception, diamond is not the most stable form of solid

carbon, which is graphite.

Due to its great hardness and strong molecular bonding, a cut diamond's facets and

facet edges are observably the flattest and sharpest.

A side effect of diamond's surface perfection is hydrophobia combined with lipophilia.

Hydrophobia means that a drop of water placed on a diamond will form a coherent

droplet, whereas in most other minerals the water would spread out to cover the

surface. Lipophilic means that grease and oil readily collect on a diamond's surface,

while on other minerals oil would form coherent drops. This property is exploited in

the use of so-called "grease pens," which apply a line of grease to the surface of a

suspect diamond simulant.

It is important to distinguish between the hardness of diamonds and toughness.

Whereas hardness is defined as diamond's resistance to scratching, toughness is a

material's ability to resist breakage from forceful impact. Diamond has exchellent

hardness but is not as tough as engineering materials, and it can be broken when

being hit with a hammer.


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The hardness of diamond is rated 10 (hardest) on Mohs scale of mineral hardness.

The hardest diamonds are mined in the New England area of New South Wales,

Australia. They are generally small, perfect to semiperfect octahedra, and are used

to polish other diamonds. Their hardness is considered to be a product of the crystal

growth form, which is single stage growth crystal. Most other diamonds show more

evidence of multiple growth stages, which produce inclusions, flaws, and defectplanes in the crystal lattice, which affect their hardness.

The toughness of natural diamond has been measured as 3.4 MN m -3/2

Because diamonds resist scratching, except by other diamonds, they are suitable for

gems that are worn daily. This is why they have become the preferred engagement

and wedding gemstones.

The hardness of diamonds has also made them suitable for industrial applications,

especially in drilling sawing and wearing other materials, including other diamonds.

Common applications include diamond-tipped drill bits and saws, and the use of

diamond powder as an abrasive. Industrial-grade diamonds are those that are either

unsuitable for use as gems or those that are synthetically produced.

Some specialized applications include the use of blue diamonds as semi-donductors.

Other diamonds are excellent electrical insulators.

Pure diamonds are transparent and colorless. Color in diamonds is ther result of

impurities or structural defects. Most of these impurities replace a diamond atom in

the crystal lattice. The most common impurity, nitrogen, causes a slight to intense

yellow coloration depending upon the type and concentration of nitrogen present.

Diamonds can occur in any color, but light yellow and light brown are the most

common. A diamond that contains many dark inclusions can be called "black",

without being really black.

The Gemological Institute of America (GIA) classifies low saturation yellow and

brown diamonds as diamonds in the normal color range, and applies a grading scale

from 'D' (colorless) to 'Z' (light yellow).

A blue diamond recently fetched almost $8 million. The blue hue was a result oftrace amounts of boron in the stone's crystal structure.

Diamonds are identified and distinquished from other similar looking materials by

their high thermal conductivity.

Adding to the mystery and aura of what make diamonds so sought-after,


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approximately 250 tons of ore must be mined and processed in order to produce a

single, one-carat, polished, gem-quality diamond.

Natural History Of Diamond - How Diamond Is Formed

Diamonds were formed billions of years ago under intense heat and pressure when

diamond-bearing ore was brought to the surface through volcanic eruption. After the

magma cooled, it solidified into blue ground, or kimberlite, where precious rough

diamonds are still found today.

Natural diamond is formed where carbon has crystallized under exposure to high

pressure and temperature. the pressure must be between 45 and 60 kilobars and the

temperature between 900 and 1300 C.

These conditions occur naturally only in the lithospheric mantle, below the

continental plates, and at meteorite strike sites.

In the lithospheric mantle, the proper temperature and pressure are usually found in

depths of 140-190 kilometers. The correct combination of temperature and pressure

is only found in the thick, ancient, and stable parts of continental plates where

regions of lithosphere known as cratons exist. Presence in the cratonic lithosphere

for long periods of time allows diamond crystals to grow larger.

The slightly misshapen octahedral shape of rough diamond crystal in matrix is typicalof the mineral. Its lustrous faces also indicate that this crystal is from a primary

deposit.

Through studies of carbon isotope ratios (similar to the methodology used in carbon

dating, except with the stable isotopes C-12 and C-13), it has been shown that the

carbon found in diamonds comes from both inorganic and organic sources. Some

diamonds, known as harzburgitic, are formed from inorganic carbon originally found

deep in the Earth's mantle. In contrast, eclogitic diamonds contain organic carbon

from organic detritus that has been pushed down from the surface of the Earth's

crust through subduction before transforming into diamond. These two differentsource carbons have measurably different 13C:12C ratios. Diamonds that have

come to the Earth's surface are generally very old, ranging from under 1 billion to 3.3

billion years old.

The high pressure and temperature required for diamond formation also occur during

meteorite impact. Tiny diamonds, known as microdiamonds or nanodiamonds, have

been found in meteorite impact craters. These can be used as one indicator of


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ancient impact craters.

Diamonds formed in extraterrestrial space, then deposited on earth by meteorites,

have been found in South America and Africa.

Diamonds are usually brought to the Earth's surface or closer to it by volcanic actionand dispersed in an area by water erosion or the action of glaciers. The latter are

usually not in high enough concentrations to make them commercially viable sources

of diamonds.

Volcanic pipes that reach 150 km or more are relatively rare, but they are the ancient

conduits of magma that transported diamonds closer to the surface, where they can

be mined.

Certain minirals which are formed and transported from the depths in the same

conditions as diamonds, are used as indicators by prospectors looking for sources of

diamonds. The most common ones are chromian garnets (usually bright red Cr-

pyrope, and occasionally green ugrandite-series garnets), eclogitic garnets, orange

Ti-pyrope, red high-Cr spinels, dark chromite, bright green Cr-diopside, glassy green

olivine, black picroilmenite, and magnetite.

Every natural diamond is immensely old, formed long before dinosaurs roamed the

earth. The youngest diamond is 900 million years old, and the oldest is 3.2 billion

years old.

History Of Diamonds

It was over 4,000 years ago that the first diamonds were mined in India, in alluvial

deposits of the stone along the rivers Krishna, Penner and Godavari.

Diamonds were known in ancient Greece and the Roman empire. Consider theancient Greeks and Romans who believed diamonds were tears of the Gods and

splinters from falling stars.

The Hindus attributed so much power to them that they even placed them in the

eyes of the statues of deities.

Not only was it believed that diamonds could bring luck and success, but also that


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they could counter the effects of astrological events. There were many that wore

diamonds as charms believing in their ability to heighten sexual prowess and attract

others. Plato even wrote about diamonds as living beings, embodying celestial

spirits.

Their rarity, durability and beauty made them popular among midieval royalty.

Today, diamonds continue to hold a deep fascination as the worlds ultimate symbol

of wealth.

Modern diamond mining as we know it today began in South Africa in the late 19th

century.

The top seven diamond-producing countries, accounting for 80 percent of the worlds

rough diamond supply, are Botswana, Russia, South Africa,Angola, Namibia,

Australia and the Democratic Republic of the Congo.

The Diamond Industry

The diamond industry consists of segments that mines, processes and markets gem

diamonds and industrial diamonds.

Gem quality diamonds are mined primarily in Botswana, Russia, South Africa,Angola, Namibia,Australia and the Democratic Republic of the Congo.

It takes an average of 250 tons of mined ore to produce one carat of finisheddiamond.

the primary diamond processing centers, where they are evaluated, cut and sold areinAntwerp; India, Tel Aviv and New York.

Unlike precious metals such as gold or platinum, gem diamonds do not trade as acommodity: there is a substantial mark-up in the sale of diamonds, and there is not avery active market for resale of diamonds. One hallmark of the trade in gem-qualitydiamonds is its remarkable concentration: wholesale trade and diamond cutting islimited to a few locations.

92% of diamond pieces cut in 2003 were in Surat, Gujarat, India. Other importantcenters of diamond cutting and trading are Antwerp, London, New York, Tel Aviv,Amsterdam.


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More than 50% of the worlds production of rough, polished and industrial diamondpasses through Antwerp.

8 in 10 of all rough diamonds in the world are handled in Antwerp.

1 in 2 of all cut diamonds passes through Antwerp.

The Antwerp diamond sector has an annual turnover of 39 billion U.S. dollars.

The diamond trade is responsible for 8% of Belgian exports, and 12% of the Flemishregions exports.

30.000 people are directly or indirectly employed by the Belgian diamond sector.

The figures speak for themselves. Antwerp has created an international commercialplatform upon which producers, manufacturers and traders from all over the worldcan meet.

Antwerp is the worlds diamond capital but there are other large centers such as theIndian production hubs of Mumbai and Surat; Israel is a complementary trade centre,mainly supplying North America. Dubai is the regional distribution centre for theMiddle East. New York is the primary port of entry into the United States, and thelargest market for diamonds in the world.

A single company, De Beers, controls a significant proportion of the production andtrade in diamonds. They are based in Johannesburg, South Africa and London,England.

Modern exploration uses highly sophisticated technologies to determine theeconomic viability of deposits. Examples include airborne surveys.

Geophysicists carry out the Ground Geophysical surveys, which are used as afollow-up tool to detect and improve definition of anomalies associated withkimberlite intrusions. Most exploration teams have one or more geophysicistshelping to manage the application of appropriate geophysical techniques andinterpretation of data. Frequently used geophysical methods include:

y Magnetics (both airborne and ground)y Airborne multi-spectral analysis (AMS)y Various suites of electro-magneticsy

Gravityy Radiometricsy Seismics

Approximately 5,000 kimberlites are currently known in the world, but only 100 or so

of these contain sufficient diamonds to be of economic interest. In most of those

deposits that are of interest, diamond is present in concentrations of less than about


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one part in five million.

Kimberlite, alluvial and marine mining use different techniques. Kimberlite mines are

underground or open-pit. Alluvial stones may be mined commercially or on a small

scale. Marine alluvial mining involves specialised ships. Diamonds are mined on all

continents.

Once diamonds are detected, there are different types of mining operation used to

extract them depending on the environment in which they are found. The majority of

diamonds are extracted on an industrial scale by open pit mining and underground

mining.

Open pit mining is excavation to reach diamonds on the surface of the ground.

Underground mining is excavation up to and, in some instances, over 1km below

ground.

Following extraction, the ore containing the rough diamonds goes through many

stages of crushing and processing before it can be sorted and classified.

Diamonds are also extracted from alluvial deposits, where they are removed from

sand, gravel and clay that has been naturally transported by water erosion and

deposited along either the banks of a river, the shoreline or on the bed of the ocean.

This process is called alluvial mining and is undertaken on an industrial scale by

coastal and inland mining, which is removal of overburden, such as sand and soil, to

find diamonds; and by marine mining, which is excavation of diamonds from the

seabed.

Diamond mining on a non-industrial scale is undertaken involving individuals,

families and communities and using the most basic equipment, such as sieves and

pans this is known as artisanal digging.

Rough diamonds are sorted based on characteristics such as shape, size, colour,

cuttability and quality. The Diamond Trade Company (the distribution arm of De

Beers) sorts and distributes 45% of the worlds rough diamond supply. The balance

is sorted and sold in centres such as Antwerp and more recently Mumbai. The DTC

exclusively sells to 93 clients that are called Sightholders.

Once processed at the mine, rough diamonds are typically delivered to sorting

experts to be sorted and valued into 12,000 different categories in preparation for

sale.

These categories are dependent on size, shape, quality and colour. The majority of

diamonds fall within a range of standard colours from colourless to faint yellow or

brown tints. Some very rare diamonds, known as fancies, are bright colours, such


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as pink, blue or green.

A perfectly transparent diamond with no colour or hue is considered to be the purest,

but all rough diamonds have some distinguishing marks, known as inclusions, which

make each one unique. The Diamond Trading Company sorts, values and sells

around half of the worlds rough diamonds selling in excess of $6 billion worth ofdiamonds a year.

The best quality diamonds in terms of colour and clarity are distributed to the gem

market with an accompanying Kimberley Process certificate to prove that they are

from conflict free sources. The remainder are ultimately used for industrial purposes,

such as cutting and drilling.

The DTC's clients known as Sightholders are among the worlds leading

diamantaires, and are carefully chosen for their ability to add value to the diamonds

sold by the DTC. Based mainly in the traditional cutting centres of Antwerp, Tel Aviv,

Mumbai, Johannesburg and New York, as well as in Botswana, Namibia, Russia,

China and Thailand, these Sightholders attend the DTCs Sights, or sales weeks,

which occur ten times a year. Through its sales process, the DTC is able to offer its

clients a consistent supply of diamonds in a range of assortments.

The DTC is the worlds leading developer and producer of diamond technology and

operates a dedicated Research and Development facility. The work of the DTCs

Research Centre is undertaken to support the consistency of DTC rough diamond

assortments for its clients and the sustainability of downstream industries in the

DTCs producer country partners.

The production and distribution of diamonds is largely consolidated in the hands of a

few key players, and concentrated in traditional diamond trading centers noted

above.

New York, however, along with the rest of the United States, is where almost 80% of

the world's diamonds are sold, including at auction. Also, the largest and most

unusually shaped rough diamonds end up in New York.

De Beers, as the world's largest diamond miner and distributor, holds a clearly

dominant position in the industry, and has done so since soon after its founding in1888 by the British imperialist Cecil Rhodes. De Beers owns or controls a significant

portion of the world's rough diamond production facilities (mines) and distribution

channels for gem-quality diamonds. The company and its subsidiaries own mines

that produce some 40 percent of annual world diamond production. At one time it

was thought over 80 percent of the world's rough diamonds passed through the

Diamond Trading Company (DTC, a subsidiary of De Beers) in London, but

presently the figure is estimated at less than 50 percent.


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The De Beers diamond advertising campaign is acknowledged as one of the most

successful and innovative campaigns in history. N. W. Ayer & Son, the advertising

firm retained by De Beers in the mid-20th century, succeeded in reviving the

American diamond market and opened up new markets, even in countries where no

diamond tradition had existed before. N.W. Ayer's multifaceted marketing campaignincluded product placement, advertising the diamond itself rather than the De Beers

brand, and building associations with celebrities and royalty. This coordinated

campaign has lasted decades and continues today; it is perhaps best captured by

the slogan "a diamond is forever".

Processing takes place in 30 countries but is concentrated in five locations: Antwerp,

Johannesburg, Mumbai, New York and Tel Aviv. India processes 55% by value of

the worlds diamonds. China and Thailand are increasingly active centres.

Diamond cutting is a great skill, practiced for generations. The natural form of a

diamond will determine the shape of the final polished diamond. A standard round

brilliant cut, with 57 or 58 polished facets, is based on the original shape of an

octahedral crystal.

Gem quality diamonds are usually distributed to one of the main diamond cutting and

trading centres in Antwerp, Mumbai, Tel Aviv, New York, China, Thailand or

Johannesburg. Once they arrive at the diamond centres, experts (known as

diamantaires) cut and polish the rough diamonds into shapes, such as the round

brilliant, the oval, the pear, the heart and the emerald.

Polishing follows cutting, before the diamonds are again classified by their cut,

colour, clarity and carat weight also known as the Four Cs. These diamonds are

typically sold to diamond wholesalers or diamond jewellery manufacturers in one of

the 24 registered diamond exchanges (known as bourses) located across the world.

Members of The World Federation of Diamond Bourses (WFDB) act as a medium for

wholesale diamond exchange, trading both polished and rough diamonds. The

WFDB consists of independent diamond bourses in major cutting centres such as

Tel Aviv, Antwerp, Johannesburg and other cities across the USA, Europe and Asia.

In 2000, the WFDB and The International Diamond Manufacturers Associationestablished the World Diamond Council to prevent the trading of diamonds used to

fund war and inhumane acts.

WFDB's additional activities also include sponsoring the World Diamond Congress

every two years, as well as the establishment of the International Diamond Council

(IDC) to oversee diamond grading.

The market for industrial-grade diamonds operates much differently from its gem-


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grade counterpart. Industrial diamonds are valued mostly for their hardness and heat

conductivity, making many of the gemological characteristics of diamond, including

clarity and color, mostly irrelevant. This helps explain why 80% of mined diamonds

(equal to about 100 million carats or 20,000 kg annually), unsuitable for use as

gemstones and known as "bort", are destined for industrial use. In addition to mined

diamonds, synthetic diamonds found industrial applications almost immediately aftertheir invention in the 1950s; another 3 billion carats (600 metric tons) of synthetic

diamond is produced annually for industrial use.

The dominant industrial use of diamond is in cutting, drilling, grinding, and polishing.

Most uses of diamonds in these technologies do not require large diamonds; in fact,

most diamonds that are gem-quality except for their small size, can find an industrial

use. Diamonds are embedded in drill tips or saw blades, or ground into a powder for

use in grinding and polishing applications. Specialized applications include use in

laboratories as containment for high pressure experiments (see diamond anvil), high-

performance bearings, and limited use in specialized windows.

With the continuing advances being made in the production of synthetic diamonds,

future applications are beginning to become feasible. There is speculation about the

possible use of diamond as a semiconductor suitable to build microchips from, or the

use of diamond as a heat sink in electronics.

Conflict (Blood) Diamonds

Conflict diamonds, also known as "blood diamonds" are diamonds illegally traded to

fund conflict in war-torn areas, particularly in central and western Africa. The United

Nations (UN) defines conflict diamonds as "...diamonds that originate from areas

controlled by forces or factions opposed to legitimate and internationally recognized

governments, and are used to fund military action in opposition to those

governments, or in contravention of the decisions of the Security Council." These

diamonds are sometimes referred to as "blood diamonds."

Conflict diamonds captured the world's attention during the extremely brutal conflict

in Sierra Leone in the late 1990s. During this time, it is estimated that conflictdiamonds represented approximately 4% of the world's diamond production. Illicit

rough diamonds have also been used by rebels to fund conflicts in Angola, Liberia,

Ivory Coast, the Democratic Republic of Congo and the Republic of Congo (also

known as Congo Brazzaville).

Today, the flow of conflict diamonds has been reduced to considerably less than 1%.


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There are three diamond producing countries that account for this small percentage.

Firstly, the Republic of Congo has been suspended from participation in the

Kimberley Process owing to areas of non-compliance. Secondly, Liberia and the

Ivory Coast are under United Nations Security Council Resolutions to prohibit the

extraction and trading of diamonds. Despite both the Republic of Congo and Liberia

benefiting from internationally recognized peace agreements, diamonds from thesecountries may be referred to as "conflict diamonds".

In July 2000, the global diamond industry made clear to the international community

its zero tolerance policy towards conflict diamonds. Dedicated to eradicating the

trade in conflict diamonds, it worked closely with the United Nations, governments

and non-governmental organizations (NGOs) such as Global Witness and

Partnership Africa Canada to create the Kimberley Process Certification System.

This system was formally adopted in 2003 and guards against conflict diamonds

entering the legitimate diamond supply chain. The diamond industry also adopted a

voluntary System of Warranties to assure consumers that their diamonds are from

sources free of conflict.

Today 71 governments have enshrined into their national law the Kimberley Process

Certification System, and now more than 99% of the world's diamonds are from

conflict free sources. However, even one conflict diamond is one too many. The

diamond industry continues to work with governments, NGOs and the UN to

strengthen the Kimberley Process and the System of Warranties.

While diamonds have been used to fund conflict, the problem is not the diamonds

themselves but the rebels who exploit diamonds (along with other natural resources)

to achieve their illicit goals. The vast majority of diamonds come from countries at

peace. These countries have been able to invest the revenue from diamonds into the

development of infrastructure, schools and hospitals for the good of the communities

in which diamonds are found. These countries include Australia, Botswana, Canada,

Namibia, Russia, South Africa and Tanzania.

More than 99% of the world's diamonds are now from conflict free sources and are

officially traded under the UN mandated Kimberley Process.

Outraged in the late 1990's that proceeds from diamond sales financed arms

purchases and prolonged insurrections, in Sierra Leone and Angola, which weresome of the most brutal of the past decade, the international community acted. By

2003 the international community through the participants in the Kimberley Process,

bringing together industry, governments and civil society, mobilized governments to

ban trade in rough diamonds funding African conflicts. Called the "Kimberley Process

Certification Scheme" the ban ended those African conflicts financed by "blood"

diamonds. Based on the respect for human dignity, the negotiators found the

following common interests to win support for an international ban on trade in rough


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diamonds used to finance war and rebellion:

First, in memory of those who died in Sierra Leone, in Angola, in the Democratic

Republic of the Congo and other African countries in conflicts fueled by rough

Conflict Diamonds;

Second, to end the killing in on-going conflicts in Africa;

Third, to save the children of Africa whose lives would be threatened by future

conflicts fueled by conflict diamonds;

Fourth, to ensure those countries which depend on diamonds for their development

and economic well-being will benefit from their patrimony; and

Fifth, to assure consumers the diamonds they wish to enjoy are without the taint of

conflict.

Diamond industry, The history of the

Summary

This article traces the history of diamonds, from its first discovery in Antiquity to thediscovery of this highly valued stone in South Africa in the nineteenth century. It also takesin its physical characteristics and occurrence, production and mining, fashioning anddiamond cutting.

Diamondcontaining gravel from Lichtenburg.Ensiklopedie van die Wreld


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Characteristics

A diamond is a mineral composed of pure carbon. Pure diamonds are colourless andtransparent. The difference in the refraction index for the colours red and violet isapproximately 0,06, which indicates the high dispersion power. Diamonds are not affected byacids.

The usual crystal form is the octahedron. Normal regular crystals are called regulars orclosed. To the irregular forms belongs the flat octahedron, among others. When the hardcorners are absent, a cubic form develops.

The diamond surface can vary from smooth to deeply etched. The so-called adamantine lustreis visible on the smooth surface. The colour of the surface can vary from blue-white to deep

brown or yellow. The colour of the surface and that of the heart of the stone can differcompletely.

The atoms in the crystal grid of diamonds are arranged in layers running parallel with the

direction of the octahedron. Cleaving is possible as the cohesion between these layers is notgreat. Because two levels always run parallel, the stone can be cleaved in four maindirections.

In assessing a rough gem diamond, the value of the cleaved product is taken as a criterion.This is determined by four factors: weight, purity, colour and clarity and the way in which thestone is fashioned. The weight is expressed in carats: one metric carat (MC) = 0,20 gram,subdivided into 100 points. One grain = 25 points.

If an impurity in a stone is noticeable through a magnifying glass, it is not "loupe pure". Withstronger magnification, impurities are found in all stones. These can be black inclusions, orsmall white bubbles, or clouds of small impurities and streaks. Cracks and the remains of a

seam are faults that occur often. Colourless stones have the most value. As an exception,colours occur in cleaved stones, like blue, pink or violet, green or yellow gold. The moreyellow or brown the stone's colour, the lower its value.

Occurrence

The original locality of diamonds is a very base rock forced upward through the earth's crustfrom a great depth in red-hot fluid conditions, dissolving into carbon on its way out of thesurrounding rock. When cooling under high pressure, this carbon crystallises as diamonds.By its hardness and resistance to chemical influences the diamond is released by erosion fromthe mother rock and conserved in the resulting eluvial and alluvial deposits.

Diamonds occur in "pipes" of volcanic origin that narrow with increasing depth, and can berecovered there, or near the surface in open ground, rivers, dunes and on the seabed (thencalled alluvial diamonds).

South Africa

In South Africa diamond pipes were found in the ground at depths of up to 15 or 18 m, theso-called "yellow ground". It proved to be the oxidised form of slate-blue soil or kimberlite,


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an unoxidised combination of rock material. Earlier diamond diggers stopped work whenthey reached the "blue ground". It also occurred near the limit of primitive exploitationmethods in single claims, with a decreasing occurrence of diamonds at greater depths.

The consequent slump around 1875 afforded two groups of speculators, the brothers Barnatoand Cecil J Rhodes, to buy up such "worked out" claims, leading to the formation of De

Beers Consolidated Mines Ltd and the take-over of the Kimberley Central Mining Co Ltd.

Treatment of the blue ground began with opening it up. A trench, approximately 2 m deep,was then dug to expose it to the sun, while it was kept moist until the material disintegratedinto powder and the diamonds could be taken out. The methods used to take diamonds outincluded pulsators, wire mesh equipment and grease tables or belts to which the diamondsadhered while the other material was washed away.

Alluvial diamonds did not adhere to grease tables, but in June 1953 the De Beers groupannounced that they were introducing electronic separating methods. Eventually, in 1968, thisgroup introduced X-ray equipment at the new Finsch mine to remove diamonds of more than0,3 carats in "plus-7" mesh, while the smaller diamonds were collected on grease belts.

Production and mining

Over many centuries India produced diamonds worth R500 million, but in modern times thiscountry's production came to a virtual standstill. In Brazil diamonds were discovered in about1725. Nowadays production there is minimal. The Star of the South (255 carats) came fromthe Minas Gerais in 1853. Brazilian diamonds are usually brown or black, but can be a clear

blue-white when cut. Venezuela and Guiana also have diamond mines.

Diamond deposits were discovered and exploited at Perm in Russia from 1800. Newdiscoveries - this time in the Cena river basin of Yakut, Siberia - created great excitement on

the market in 1956, and in 1958 no less than 40 pipes in an area of 160 000 km werereported.

History of the diamond industry

In Antiquity it took long before diamonds - called adamas by the Greeks, were distinguished

from other precious stones. The first diamond fields worked were in India (Golconda), wherethe famous Koh-i-noor (known since 1304) and Regent were picked up in riverbeds duringthe dry season. Some ten areas were important diamond-producing areas.

South Africa

In 1853 in South Africa John Campbell picked up a clear stone, but threw it away. In 1867 asmall boy stumbled across South Africa's first diamond on the farm of his father, Daniel

Jacobs, next to the Orange River near the town of Hopetown. Although various traders towhom he had shown it considered it valueless, Lourenzo Boyes, an official at Colesberg,

suggested that it be taken to Dr W G Atherstone, a mineral expert in Graham's Town.


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Dr Atherstone ascertained that it was a 211 carat diamond, worth R1 000. A second diamondwas found ten months later at the confluence of the Vaal and Orange Rivers. In 1868 theKoranas picked up a couple more.

In 1869 a young Griekwa shepherd picked up a beautiful diamond of 831 carats near theOrange River, on the farm Sandfontein in the district of Hopetown. Schalk van Niekerk gave

the child 500 sheep, 10 oxen and a horse for it. He later sold it in Hopetown for more thanR22 000. This diamond, named the Star of South Africa, was later purchased by the BritishEarl Dudley for R50 000.

Within a short time 10 000 diggers were busy sifting the alluvium between the Vaal and theHarts Rivers. Up to that time diamonds in South Africa were found only in alluvium, but in1870-1871 so many diamonds were found far away from rivers in the big area between theVaal and the Orange that the alluvial diggings were almost deserted. In 1869 one De Klerkfound a beautiful diamond on the farm Jagersfontein, near Fauresmith, at a depth of 2 m. Thediggers have just started to flock to Jagersfontein when someone discovered a rich mine atDutoitspan. A number of "shiny stones" were also found on the neighbouring farm,Bultfontein.

Some prospectors digging along the Vaal River heard of a lonely man who was daily diggingup a lot of diamonds. They found his tent among the thorn trees. He showed them a matchboxfull of diamonds. They talked to the owner of the farm, J N de Beer, and obtained the right to

peg claims.

Shortly afterward the rush began. The brothers De Beer had originally bought the farm for R8100. After the discovery of diamonds it was sold for R12 000. The rich mine discovered onthe farm was known as the De Beers Mine and De Beer's name was also immortalised in thename of the biggest diamond company in the world, De Beers Consolidated Mines Ltd.

In July 1871 the Kimberley mine - today known as the Big Hole - was discovered near the DeBeers mine. As the hole became deeper, it became more expensive to work the claims. Smallcompanies were formed, which were then consolidated into bigger companies to be able toafford the more expensive equipment. In addition, every company and every digger dug outas many diamonds as possible, with the result that the supply exceeded the demand.

The price fell so low that it was no longer profitable to dig. The only solution was a limit onthe number of diamonds that reached the market. To this end a consolidation of all thediggers and companies in one big company was essential - an ideal realised by Cecil JohnRhodes. In 1871 he bought claims in the De Beers mine. From 1873 Rhodes and some of hisacquaintances began to buy out other diggers and companies in the De Beers mines and by1887 Rhodes was master of the entire De Beers mine, where modern machinery reduced the

costs of recovery.

Rhodes's next step was to unite his interests and those of Barney Barnato, whereupon the DeBeers Consolidated Mines Ltd came into being in 1888. Later he also gained control of theDutoitspan and Bultfontein mines, and at the age of 36 controlled 90% of the world'sdiamond production!

The discoveries at Kimberley were followed by the opening up of the Premier diamond minenear Pretoria in 1902. Between 1906 and 1912 a number of small but often rich deposits were


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separated. In cutting, the desired form is given to the stone (that is, round brilliant) and inpolishing the facets are made on the stone. Some 50-70% of raw materials are lost fromfashioning the rough diamond to the polished product.

The sawing process is done with machines. The edge of a very thin phosphor bronze disc(saw) is coated with diamond dust, mixed with olive oil. It rotates at a speed of 5 000 to 10

000 rpm. The diamond is placed in a dop, or holding arm, at the end of a handle fixed in steelclaws and rubbed against the disc. At the top end of the steel claws an adjustablecounterweight is fixed for regulating the pressure on the stone.

For cutting, the stone is fixed in a dop, placed in the cutting machine (a kind of small lathe).With the so-called co-cutter, a handle in which another stone is fixed, the stone is rubbed(bruted) against the stone in the machine, at approximately 2 000 rpm.

The aim is to obtain a diamond with the highest degree of perfection with the smallest loss ofweight. This is done on a horizontal cast iron disc, prepared with diamond dust and made torotate 2 500 to 3 000 rpm. The cutting is divided into "cross work" and "brillianteering". Thefirst consists of cutting the "table" and four corners at the top and the lowest point and four

corners at the base. The cutting of the other facets is the brillianteering.

The diamond dust used in the sawing and cutting of diamonds is made from crushing roughdiamonds into small particles and mixing and clinkering it with a special type of material.

The cutting style depends on the shape of the stone, the current fashion and the designchosen. At first the round brilliant shape was the most popular form and later the rectangularemerald shape. Stones are cleaved to improve them; portions that cannot be processed, or aretoo impure, are thereby removed.

Diamond cutting

Diamond cutting was already practised in 1373 in Nuremberg, Germany, and inapproximately 1400 in Flanders, from where the industry expanded to France. At the end ofthe sixteenth century many diamond processors went from Antwerp to A'dam. At the

beginning of the seventeenth century their numbers were augmented by Portuguese Jews andrefugees from Poland and Germany.

A'dam as centre of the industry was particularly prosperous after the discovery of diamondsin South Africa in 1870. In the Netherlands and Flanders the industry was disrupted by WorldWar I, partly because supplies from London were cut off and partly because the mainlyJewish population of cutters was decimated by the Nazi regime.

Only about 100 of the several thousands of cutters managed to escape to the UnitedKingdom, where the industry eventually employed several hundred cutters. The developmentof the industry was impeded by sales duty on jewellery, after which many cutters went toIsrael. In South Africa the industry developed after prolonged discussions on sales duty onrough diamonds as protection of some kind.

A modern cutting plant was established in Japan in May 1968 by De Beers and the Engelhardgroup on the one hand and the Japanese on the other hand. The early South African cuttingindustry was often influenced by not having enough jobs and by wage cuts. This happened in


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the middle of 1947, in 1953 and at other times when there was uncertainty on the worldmarket. The development of the industrial use of diamonds, however, brought new jobopportunities.

history of diamonds(1)

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