The global diamond industry is undergoing a rapid and unprecedented collapse, according to tech entrepreneur and academic Leanne Kemp, though some industry analysts argue that while the downturn is severe, it is not terminal.
Plunging revenues, halted operations and growing doubts about diamonds’ cultural and economic relevance are just some of the symptoms cited by Kemp, who insists the industry isn’t just slumping. She said it’s “disassembling”.
The past quarter has laid bare the severity of the crisis. Anglo American’s (LON: AAL) De Beers, the world’s largest diamond producer by value, saw a 44% revenue drop and is sitting on $2 billion worth of unsold stock. The company plans to cut over 1,000 jobs at its Debswana joint venture, according to the mine workers union, even though the operation is the backbone of Botswana’s economy.
Russia’s Alrosa, under heavy sanctions, reported a…
