Overview
The Australian Diamond and Gemstone Mining Industry is highly globalised with exports accounting for 90 per cent of revenue valued at A$684 million in 2005-06. Representing about 0.05 per cent of Australia's GDP, the industry consists of two major enterprises, although there are also numerous other small producers including individuals fossicking for gems.
The main industry product is diamonds accounting for 92 per cent of the market share. In 2005-06, over 27 million carats were exported globally. The remaining market share is made of mainly opals, pearls and other gems such as sapphires and chrysoprase.
Diamonds
The Argyle deposit in WA’s Kimberley region contains a large proportion of the world's economic diamond resources. It has some of the highest diamond grades in the world and produces nearly twice the diamond output of any other country. The Argyle deposit sells 100 per cent of its product direct to the world market. The best Argyle rough diamonds, including the renowned pink diamonds, are cut and polished at the Argyle Diamonds facility in Perth, Western Australia.
Opals
Australia produces around 95 per cent of the world's opal for use in the jewellery industry. Other countries in which opal is found in small amounts include Honduras, Mexico, the Czech Republic and Brazil, however these types of opals often differ in appearance. The current Australian production figures for uncut gems vary between A$100 million and A$200 million.
Australia's opal fields lie in Queensland, New South Wales, and South Australia, along the site of the ancient Great Inland Sea. 'White', or 'Milky' opal, is found in South Australia, 'Black' opal is found in Lightning Ridge, NSW, and 'Boulder' opal is found in Queensland.
The major markets for opals are the USA, Japan, Germany, Hong Kong and New Zealand.
Sapphires
Australia is a major producer of gem-quality sapphires and supplies a wide range of qualities and sizes of stone to world markets. The commercial mining of sapphires and the main production comes from two major fields, the Anakie field in Queensland and the New England field in New South Wales.
The commercial blue stone is mainly sold under contract for export in bulk to Thailand for processing, which includes heat treatment and cutting. The smaller size stone is cut into calibrated sizes for use in the mass jewellery market. The best quality sapphires and fancy stones are supplied mainly to niche markets in Europe and the USA as well as the domestic jewellery trade and tourist market.
Pearls
Australia is the world’s largest producer of white South Sea pearls – cultured pearls of more than 10 mm diameter that have been grown in the gold- or silver-lip pearl oyster, Pinctada maxima. Australian white South Sea pearls have an average diameter of 12-14 mm but may reach an exceptional 20 mm.
Other essential products of Australia’s white South Sea cultured pearl industry include half-pearls up to 25 mm diameter, that are available in a range of shapes, and an intriguing range of designer-ready baroque accidents — termed ’keshi’ pearls in the trade.
Areas for pearl production are Western Australia, Queensland (including spat hatcheries at Albany Island, Turtle Head, and Fitzroy Islands) and the Northern Territory centred on the Coburg Peninsula, to the north-west of Darwin. Pearl cultivation also occurs in Darwin and Bynoe Harbours.
Sources:
Diamond and Gemstone Mining in Australia, IBISWorld
The Gemmological Association of Australia
What are the key opportunities?
Diamonds continue to be by far Australia’s biggest market and offer the biggest opportunity globally. Australia is also renowned for its variety of opals and sapphires, and as one of the world’s major producer of quality pearls.
With the export market being soft at present, the emphasis is not so much on which product, but on looking to newer markets for export opportunities.
Where are the key opportunities?
Hong Kong remains the dominant market for the export of gemstones. The market has steadily increased in recent years with over one-third of all Australian exports destined for Hong Kong.
Japan is the next biggest market followed by the USA. The greatest opportunities for Australian gemstones include newer markets such as:
- China
- India
- Russia
- Eastern Europe
Please see the list of industry country profiles for the gemstone/jewellery industry at the end of this overview.
How can we help you?
With a network of over 140 overseas locations in more than 60 countries backed by highly experienced and qualified staff, Austrade provides a number of dedicated and tailored services to Australian exporters.
Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au
Useful contacts
Government contacts
Geoscience Australia – www.ga.gov.au
Government of Victoria – www.vic.gov.au
South Australia Government – www.sa.gov.au
Northern Territory Government – www.nt.gov.au
NSW Department of State & Regional Development – www.business.nsw.gov.au
Queensland Government – www.sd.qld.gov.au
Western Australia Government – www.doir.wa.gov.au
General industry contacts
Australian Jewellery Events – www.jewelleryfair.com.au
Gemmological Association of Australia – www.gem.org.au
ICA International Colored Gemstone Association (USA-based) – www.gemstone.org/index.html
Jewellery Association of Australia – www.jaa.com.au/jaa/home.php
Last updated: 25 Jun 2008
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