Luanda Accord Signed, Production Slips, Synthetics Shunned

It was a historic week for the diamond industry with the signing of the Luanda Accord. The significance of this agreement – signed by representatives from six African producer nations, four trade bodies, and De Beers – cannot be overstated.

The signatories committed to contributing 1% of rough diamond sales to a global marketing initiative promoting natural diamonds, spearheaded by the Natural Diamond Council (NDC).

This move is long overdue – three years, in fact – since Alrosa, a major funder, withdrew its support for the NDC following the outbreak of the war in Ukraine. Still, it’s not too late. The Luanda Accord reflects a renewed urgency within the natural diamond industry to push back against the growing impact of synthetic diamonds.

Details of the funding mechanism remain unclear. Will the contribution be collected at customs on a per-transaction basis, or as a lump sum – monthly, annually, or otherwise? Will it be paid by individual companies, governments, or trade bodies?

These specifics are reportedly still being finalized, with implementation expected in 2026. In the meantime, the NDC has welcomed Angola’s state-owned mining company Endiama and its sales arm Sodiam as new members. Together, they will contribute $8 million to the NDC budget in the second half of this year. De Beers has also committed an additional $8 million for 2025, bringing the NDC’s total 2025 budget to $38 million.

That figure is far below the $100 million the NDC once had at its disposal, and still short of what’s needed to execute a truly effective global marketing strategy. The hope is that the funding enabled by the Luanda Accord will begin to fill that gap – and, in doing so, help raise the natural diamond industry’s profile in an increasingly competitive consumer landscape.

>>> Rough Production

Global rough diamond production fell 3% year on year to approximately 108 million carats in 2024, according to The Diamond Press analysis of Kimberley Process (KP) data. While the KP’s recently published figures indicated a 6% increase, they erroneously overstated Botswana’s contribution, according to sources familiar with the matter.

The KP statistics website is expected to be updated soon to reflect the revised totals, which will likely show the real volume number as well as a 17% drop in the overall value of production to around $10.6 billion. The average price per carat fell 14% to $97.34.

Russia remained the world’s largest producer with 37.3 million carats, followed by Botswana with 18.3 million, and Angola – this year’s biggest gainer – with 14 million carats.

This marks the lowest global output since 2020, when pandemic-related mine closures pushed production to the lowest level since the KP began collecting data in 2004. The decline reflects weak demand, falling prices, and rising inventories across the diamond mining sector. With these pressures expected to persist, production is forecast to fall further in 2025 as miners move to reduce the oversupply and stabilize the market.

>>> Polished / Synthetics

The announcement by HRD Antwerp that it will stop certifying synthetic diamonds slipped somewhat under the radar.

While HRD – a subsidiary of the Antwerp World Diamond Centre (AWDC) –doesn’t carry the same weight as the Gemological Institute of America (GIA), it went further than GIA’s recent move to reframe how it describes lab-grown diamonds. Instead of using the same grading scale as for natural stones, GIA now applies more descriptive terms for color and clarity – but it continues to issue full reports.

At the JCK Las Vegas show, GIA executives hinted in private conversations that they may eventually stop grading lab-grown diamonds altogether, potentially shifting to a simpler quality mark. So this space is one to watch.

In the meantime, credit to HRD for taking a definitive stance: as of early 2026, it will end certification of lab-grown diamonds entirely, although it will continue to certify jewelry containing synthetic diamonds. In doing so, it positions itself as the first major lab to focus solely on natural diamonds – a strategic position that others in the industry may soon follow. We expect HRD won’t be the only one for too long.

Worth Noting

GIA appointed Pritesh Patel to replace Susan Jacques as CEO and president. Patel is currently chief operating officer, and a former chief information officer at the GIA. It’s somewhat interesting that the institute went the tech route for the position.

>>> Keep an eye on The Diamond Press news page for updates on these developments and more: This Week in Diamonds

What I’m Watching

The Diggers – A fascinating documentary on South Africa’s artisanal diamond mining sector.

Pic of the Week

Image: Signatories to the Luanda Accord. (Credit: NDC).