Demand For Diamonds Remains Higher Than Ever, Is There A More Environmentally Friendly Way To Get Them?

The global demand for diamonds continues to grow at an increasing rate. In 2021, sales rose by over 60% as the markets recovered from the stagnation caused by the pandemic. In 2022, the demand for diamond jewelry reached an all-time high of US$87 billion.

However, only 20% of diamonds are decorative gemstones, and the remaining 80% are used in industrial and research applications. They are primarily used for activities like cutting, grinding, and drilling. But diamonds' unique properties are finding new applications in quantum information, sensors, electrical conductivity, and more.

The demand for diamonds for aesthetic and industrial purposes continues to grow. But unfortunately, there are significant issues with how they are obtained.

The environmental and social problems of diamond extraction

There are four main types of diamond mining – open pit, underground, alluvial, and marine - and all come with a range of problems. While diamond extraction doesn't use harmful chemicals, unlike gold mining, it does impact the environment.

For example, open pit and underground mining can lead to soil erosion and deforestation. Rivers are sometimes diverted, and the stagnant water left behind in open pits often results in higher levels of water-borne diseases and decreased biodiversity. In addition, marine mining can severely damage ecosystems and natural features like kelp beds that help battle climate change.

Another issue is high water use. This is of particular concern in places like the Democratic Republic of Congo (DRC), one of the world's top five diamond producers and a country that suffers from water shortages. Small-scale alluvial mining is a source of income for many but results in environmental damage and often dangerous and unregulated work conditions.

In addition, a recent study conducted from 2001 to 2018 found that while diamond mining is a large part of DRC's economy, if the resources and efforts were diverted toward food production, it could alleviate the country's malnourishment problems. Furthermore, it would minimize issues such as 'blood diamonds' funding conflicts - a trade that, although diminished, still occurs.

John 'Jay' G. Grdina is the founder of Adamas One (NASDAQ: JEWL), a high-tech lab-grown diamond manufacturer. He is all too aware of the problems relating to diamond extraction.

Grdina says, "Diamond mining has wreaked environmental havoc throughout Africa and other parts of the world. For example, it takes 250 tons of earth to produce one carat of diamonds. That equates to 661,200,000,000,000 pounds of removed earth for our world's reserves."

A study by the Imperial College London also highlighted the energy impact and resulting emissions. It found average greenhouse gas emissions of 511kg of CO2 were released per carat.

Lab-grown diamonds - a more environmentally and socially acceptable alternative

It was statistics like these that originally prompted Grdina to found Adamas One. The US-based company manufactures near-flawless diamonds for gemstone and industrial applications in a laboratory. Its lab-grown diamonds are identical to mined ones, with the same composition and qualities.

"The demand for diamonds, both for jewellery and industrial purposes, continues to rise," Grdina says. "But the way they are extracted is simply unsustainable. Fortunately, there are now other options. Lab-grown diamonds require almost 90% less water to produce and result in around 95% fewer GHG emissions. They also don't come with all the associated social problems."

Grdina explains, "We can use our proprietary technology to produce high-quality, single crystal diamonds and diamond materials through a CVD process, which we refer to as our Diamond Technology. Lab-grown diamonds have the exact physical, chemical, and optical properties of the best-mined diamonds. They are composed of a pure carbon lattice, just like mined diamonds, and are not considered synthetic or simulant diamonds."

The technology behind chemical vapor deposition, or CVD, has been around since the early 90s but has only recently become commercially viable. Being able to grow such a highly demanded material more efficiently and ethically is likely to change both the minor sector and what it can be used for - but it is still early days.

"We are in the initial phases of commercializing diamonds and diamond materials. Our primary mission is to develop a profitable and sustainable commercial production model for the manufacture and sale of diamonds and diamond materials," Grdina says.

"Diamond has unique qualities, such as hardness, clarity, and thermal characteristics, for use in advanced electronics and optics applications. But to date, development has been slow due to aspects like relative scarcity, mined diamonds' low uniformity, and high cost. Our approach will increase opportunities for known, emerging, and anticipated industrial, technology, and consumer applications."

Diamonds are sought after for their aesthetic appeal and industrial capabilities. As demand rises, the environmental and social impacts of extracting them through mining will continue to grow. But, thanks to technological advances, new approaches and techniques show incredible promise.

It is still a relatively new field, but innovations like CVD and lab-grown diamonds can lower prices and carbon footprints while being more environmentally friendly and providing a more ethical alternative.