Venezuela Upheaval could Unlock Diamond Reserves
January 15, 26
(IDEX Online) - Political upheaval in Venezuela could unlock the country's long-dormant diamond reserves.
Estimates of the country's deposits vary widely. In recent years the Venezuelan government has claimed there are 1,020-1,295m carats across the vast Orinoco Mining Arc, in the south of the country.
More moderate estimates suggest the Guaniamo region specifically (which lies within Orinoco Mining Arc) could yield 275m carats from alluvial deposits.
Around a third of the output would likely be gem quality, based on Venezuela's history as a small-scale diamond miner.
Production peaked in 1974 at nearly 1.2m carats but is negligible today, as a result of decades of political instability, infrastructure collapse, and criminal control over mining sites.
But since former president Nicolas Maduro was captured by US forces, investor focus on diamonds, as well as gold and other resources in the Orinoco Mining Arc has been reignited.
If the country becomes more stable - via sanctions relief, cartel clearance, and foreign partnerships - it could revive and build its diamond industry.