*Global production rises 39%

After slipping to second place in 2009 as Debswana slashed production in response to the global economic downturn, Botswana has regained the top spot as the world's largest rough diamond producer by value ahead of Russia.

According to statistics release by the Kimberley Process (KP), despite Russia producing more rough diamonds in 2010 at 34 million carats worth P15.94 billion ($2.38 billion), Botswana's 22 million carats dug in 2010 were worth P17.35 billion ($2.59 billion), which was P1.4 billion ($210 million) more than the East European country's.

Says the KP: "Botswana was the world's top producing country by value in 2010 at $2.59 billion for 22 million carats, but Russia was the top producer by volume at 34.86 million carats valued at $2.38 billion. Russia held the top spot for both categories in 2009." In reaction to the cooled demand and weaker gem prices in 2009, Debswana - which has traditionally held the top spot - produced 17.7 million carats from 32.5 million in 2008, allowing state-owned Russian company, Alrosa, to clinch the top spot. Alrosa, which is now the joint top diamond producer in the world alongside De Beers, produced 35 million carats in 2009 worth P14.74 billion ($2.2 billion).

In 2011, Debswana plans to produce 25 million carats,� although the country's total supply will be slightly higher due to production from independent junior, Firestone Diamonds. According to KP statistics released this week, global rough diamond production rose 39 percent by value in 2010 to P80.4 billion ($12 billion). The figure was still below the peak year of 2008 when production totalled P85 billion ($12.73 billion).

In terms of volume, rough diamond production rose nearly seven percent to 133.12 million carats. The average price per carat produced rose 30 percent to $90.13.

The Kimberley Process is a joint government, industry and civil society initiative to stem the flow of conflict diamonds, which is industry jargon for rough diamonds used by rebel movements to finance wars against legitimate governments. As at December 2009, the KP has 49 members representing 75 countries, with the European Community and its member states counting as an individual participant.

Other top diamond producers by volume in 2010 included the Democratic Republic of the Congo with 20.17 million carats, South Africa with 13.67 million carats, Canada reported 11.8 million carats, Zimbabwe mined 8.44 million carats and Angola produced 8.36 million carats.

Canada ranked third in terms of value for rough diamonds produced in 2010 at $2.3 billion, followed by South Africa with $1.8 billion.� Other top countries by value included Angola, Namibia, Zimbabwe and Australia. The total rough exports by all Kimberley Process member states jumped 51 percent to $37.6 billion while rough imports also rose 51 percent to $37.78 billion.

Despite not being among the top producers, the European Union was the world's top rough exporter in 2010 with rough diamonds valued at $14.3 billion leaving the region. Israel came in second place with $3.74 billion in rough exports, Dubai was third place with $3.54 billion, followed by Botswana at $2.88 billion, Russia at $2.78 billion and Canada at $2.41 billion.

Europe was also the top rough importer in 2010 with $13.59 billion worth of goods, followed by India at $11.23 billion, Israel with $4.43 billion, Dubai with $2.06 billion and China with $2.02 billion. There was little surprise, considering the high-value stones coming out of Lesotho that the country produced the highest per-carat value of any country by far at $1,816.63 in 2010.