Diamond Market Shift and Mine Closure in Sierra Leone
The increasing demand for lab-grown diamonds has significantly reduced the price of mined diamonds worldwide. This shift has led to the closure of Sierra Leone's largest diamond mine, Koidu Holdings, located in the Kono region, the country's diamond-rich area.
In this remote informal mining site, men work under the hot sun, sifting and shoveling mud in search of diamonds. Daniel, the foreman, demonstrates the process of washing gravel to identify any diamonds or bright stones.
"We put it in water and we wash it," he says. "If there is anything like a diamond or any bright stone, we can see it."
Daniel and five others are searching for small fragments, but their finds are scarce.
"I have not made a lot of money yet," he admits. "Sometimes for the whole of the year you can't get anything. It is by the grace of God that you find a diamond. We are just dreaming, really. We still have that hope."
This informal mining activity has surged following the 2023 closure of Koidu Holdings, which resulted in the loss of 1,000 jobs after a protracted dispute over miners' wages. Officially, the company cited the dispute's cost and security concerns as reasons for shutting down, though insiders also acknowledge the global market's weakness as a contributing factor.
Global Market Trends and Lab-Grown Diamonds
Over the past four years, the retail price of polished natural diamonds has dropped by approximately 40%, primarily due to the rapid expansion of the lab-grown diamond industry. These diamonds, manufactured from crystallized carbon, are chemically and physically indistinguishable from mined diamonds.
Produced mainly in India and China through High Pressure High Temperature (HPHT) and Chemical Vapour Deposition (CVD) technologies, lab-grown diamonds cost up to 70% less than natural ones.
Augustine Shekho, governor of Kono, explains the impact of falling diamond prices on the region.
"Lower diamond values have reduced earnings for miners, constrained investment, and weakened local economic activity,"
Diamond mining has been central to this part of West Africa since the 1930s. The region's diamond wealth made it a focal point during Sierra Leone's brutal civil war, which lasted 11 years and ended in 2002. The conflict was depicted in the 2006 film Blood Diamonds, starring Leonardo DiCaprio.
Historical Conflict and Its Legacy
Kono was heavily targeted during the war due to its diamond resources. Governor Shekho recounts the atrocities committed, including the death of his mother.
"They shot at random, they killed people, burnt the entire town," he says. "All houses were mined. It was a war of terror... She, my mother, unfortunately, was the victim of that… It was a nightmare. I would really not want to think about it."
The conflict resulted in over 50,000 deaths and left hundreds of thousands maimed or displaced.
In 2003, the Kimberley Process, a UN-backed international certification scheme, was established to prevent conflict diamonds from entering the mainstream market. Despite this, the industry continues to face challenges in overcoming its tarnished reputation.
Abubakar Amara, a primary school teacher in Kono, expresses local disillusionment.
"To me the diamonds have failed us," he says. "What have those diamonds done for our community, for Kono, for Sierra Leone? We are considered as poor in the world."
De Beers’ Initiatives and Consumer Trends
De Beers, a British multinational specializing in diamond mining and marketing, is working to improve the industry's image. In Sierra Leone, it has launched Gemfair, a program providing artisanal miners with equipment, training, and transparent pricing, akin to a fairtrade model for diamonds.
"The idea is to connect with markets so that they can be able to find a place to sell their diamonds, and also to empower them, give them training, we give them skills,"
explains Raymond Alpha, Gemfair's local representative.
For De Beers, the initiative also serves to enhance transparency, enabling retailers to share the origin story of each diamond sold.
"We are seeing a growing interest from consumers," says David Johnson, a De Beers representative. "With people increasingly wanting to know where their coffee, cotton or chocolate has come from, it's not surprising that people also want to know where their diamond – one of the most emotionally significant purchases – has come from."
Lab-Grown Diamonds: Ethical and Environmental Considerations
While increased traceability may attract more customers to mined diamonds, the popularity of lab-grown diamonds is expected to continue rising. Rohit Mehta, CEO of Forlink Ventures in Surat, India, highlights their affordability and ethical appeal.
"People are more conscious about climate change, about extracting too much from the earth,"
he says.
However, the environmental benefits of lab-grown diamonds are debated. Unlike natural diamonds, their production is energy-intensive, requiring substantial electricity to create a single rough carat.
Stanley Mathuram, a US-based environmental consultant, notes:
"These reactors run at the temperature of the sun," he explains. "They're like data centres. That's the kind of energy that they require."
Despite these concerns, consumer demand remains strong. The global lab-grown diamond market was valued at $29.5 billion (£21.9 billion) last year and is projected to reach $91.9 billion by 2034.
In fact, the 2025 market value for lab-grown diamonds is already estimated to exceed the $20 billion annual value of natural diamonds used in jewelry, according to De Beers.
Changing Consumer Preferences in the US
In the United States, lab-grown diamonds dominate engagement ring sales, accounting for 61% of all purchases, as reported by the 2026 Real Weddings Study from The Knot.
The report indicates this is more than double the share from 2022, driven by economic considerations and evolving values, with 40% of couples emphasizing the importance of a lab-grown stone.
Doug Meadows, co-founder of David Douglas Diamonds in Atlanta, Georgia, observes that buyers prefer lab-grown diamonds because they can afford larger stones.
"It's all about the stone. They're going for the biggest bling that they can afford. Years ago, it used to be the diamond was the expensive part. With the advent of gold jumping up to $4,500, $5,000 an ounce, now the mounting is becoming a lot more expensive, and the diamond is becoming the cheap part."
Meadows sympathizes with the narrative of natural diamonds being tied to the land and the miners' experiences in West Africa but acknowledges the challenge in educating consumers.
"To try to educate a consumer about the value in a natural diamond, it is a new challenge. I don't know how we do it yet, I'm hoping the industry can give us an idea."
Life in Kono’s Diamond Belt
Back in Sierra Leone’s diamond belt, Daniel continues his search, discarding another load of gravel.
"Unfortunately there is no diamond here," he says, head bowed, gazing into the blue-grey mud of the pit. "I will try my luck again,"
he adds, resuming his work.
