Digging for Diamonds is Tougher than Ever
It turns out diamonds might not be forever. The global supply of rough (unpolished) diamonds is forecast to drop in value terms by 1 to 2 percent annually through 2030, according to Bain & Co., as demand for the prized gems grows by 2 to 5 percent each year. With easy pickings gone and aging mines closing, mining companies must spend more on projects to locate and tap deposits -- and be willing to walk away when risks outweigh rewards. For example, after spending US$120 million over six years, global mining giant Rio Tinto last year abandoned a US$330 million project in India in light of environmental concerns, including the potential impact on tiger habitats.