Sierra Leone Diamond Mines Close, Lab-Grown Alternatives Dominate Global Market
The proliferation of lab-grown diamonds has led to a significant 40% fall in the retail price of polished natural diamonds over the past four years. This has had a profound impact on traditional mining operations, notably leading to the closure of Koidu Holdings, Sierra Leone's largest diamond mine, which resulted in the loss of 1,000 jobs.
West African Miners Face Hardship
In Kono, Sierra Leone's diamond region, informal small-scale miners like Daniel continue their arduous work, sifting through mud for tiny fragments of diamonds. “Sometimes for the whole of the year you can't get anything,” Daniel states, underscoring the dwindling returns. This informal mining has surged following Koidu Holdings’ closure, officially attributed to an industrial dispute and security concerns, though insiders acknowledge the global market's weakness as a contributing factor.
Augustine Shekho, Kono's governor, noted the severe impact of declining diamond values over the last five years, leading to reduced miner earnings, constrained investment, and weakened local economic activity. The region, which suffered brutal atrocities during Sierra Leone’s civil war fuelled by diamond wealth, now faces renewed economic precarity.
The Rise of Lab-Grown Diamonds
Chemically and physically identical to mined diamonds, factory-made diamonds, primarily manufactured in India and China, cost up to 70% less. The global lab-grown diamond market was valued at $29.5 billion last year and is projected to reach $91.9 billion by 2034, surpassing the estimated $20 billion annual value of natural, mined diamonds used in jewellery.
In the US, engagement rings featuring lab-grown stones now constitute 61% of all sales, a more than twofold increase since 2022. This shift is driven by “economic pragmatism and evolving values,” with many consumers prioritising affordability and perceived ethical advantages.
Ethical and Environmental Debates
While proponents argue lab-grown diamonds are more ethical and environmentally friendly, concerns persist regarding their energy-intensive production. Stanley Mathuram, a US-based environmental consultant, highlighted the vast electricity requirements, likening the reactors to
