Gem Diamonds (LON: GEMD) has discovered another significant Type II white diamond at its productive Letšeng mine in Lesotho, just six days after its last find.
This 118.74-carat diamond marks the fifth gem over 100 carats recovered this year at the mine, according to the company.
Type IIa diamonds, which contain very little or no nitrogen atoms in their crystal structure, are highly valued and sought after. In contrast, boart diamonds are lower-quality stones used in powder form as an abrasive.
Letšeng mine, situated at an altitude of 3,100 meters (10,000 feet) above sea level, ranks among the world’s top ten diamond operations by revenue and is one of the highest diamond mines globally.
Diamond miners are currently facing challenges due to weak demand for diamond jewelry in the US and China, coupled with the increasing popularity of cheaper laboratory-grown diamonds.
The rise of man-made diamonds as a competitor to natural diamonds has been notable. In 2015, they were barely present in the market, but by last year, they accounted for more than 10% of the global diamond jewelry market, according to industry expert Paul Zimnisky.
Small to medium diamond mining companies, such as Canada’s Lucara (TSX: LUC), South Africa’s Petra (LON: PDL), and Gem Diamonds, have market values of around $100 million or less. This is significantly lower than the potential value of the large stones they aim to recover, which could be worth several times more.
