Where are the best diamonds produced?

Buyers often ask: “What kind of diamonds do you have? Yakut?

In the mass consciousness they mean quality, but what is a Yakut diamond? Let’s try to figure it out.
Its history goes back to 1454, it was then that the first diamond was cut and used as decoration. For centuries, until the beginning of the 18th century, the main source of diamonds was India, which gave way to Brazil, which became the world center for the extraction of these stones. But perhaps the most significant event was the discovery in 1866 of the first diamond on the African continent. And a little later, in 1883, the De Beers company was created, the history of which is inextricably linked with the formation of the rough and polished diamond market. By 1902, the company controlled 95% of the world diamond mining market! In 1946, De Beers launched an advertising campaign with the slogan “Diamonds are forever,” which not only increased sales, but also moved gems into the “affordable luxury” category, making them a traditional engagement gift and other significant events. Let’s return to Russia: documented cases of diamond discovery date back to the 1930th century, but full-fledged geological exploration work began only in the late XNUMXs. In 1949, the first diamond was found on the territory of Yakutia and in 1954 the first diamond pipe “Zarnitsa” was opened on the territory of the USSR. Despite the harsh climatic conditions of Siberia, new kimberlite pipes were discovered and developed, including Mir, International, Udachnaya, etc., infrastructure was built, enterprises and entire cities grew. The volume of diamond production in the 50s of the last century did not exceed 30 carats per year, but at least 000% had a weight of more than 30 carats and a quality that allowed them to be used in jewelry. At the same time, the volume of the domestic diamond market was zero. There are no reliable data on the volume of diamond exports from the USSR in the 50s in open sources, but we can say with confidence that almost all of them were exported and bought by companies affiliated with De Beers. On the one hand, the development of mining and the creation of cutting production could bring the USSR as a serious player in the world diamond market, on the other hand, the structure of costs for the creation of industrial infrastructure in the conditions of Siberia ensured negative profitability of the Soviet diamond miracle. The unprofitability of production in Yakutia made it impossible to compete with De Beers on the world market. In 1960, an agreement was signed between the USSR and De Beers, which excluded the possibility of the USSR independently entering the world market and obligated De Beers to buy all diamonds produced in the USSR for export. The enormous costs of the diamond industry could only be offset by intensive production rates, and they grew, but the world market could not absorb such volumes of raw materials. In 1963, cutting production began in Smolensk, which later became part of the developed Crystal cutting system with branches in Gomel, Kyiv, Barnaul, Vinnitsa, Yerevan, Chita, Shakhrisabz. Thanks to the development of cutting production, the USSR begins “multi-channel export”. From the 60s of the last century until the collapse of the USSR, the cutting industry developed steadily. Strict cutting standards were developed, resulting in the resulting gemstones with ideal proportions, which is why the term “Russian cut” arose on the world market. What is the fundamental difference between the “Russian cut” and why such diamonds are “sold at a premium (i.e. more expensive) 10%” On the world market, the quality of cut is determined according to the 4C’s system proposed by GIA (Gemological Institute of America), and for stones with proportions close to “ideal” (i.e. e. with those when the maximum of light entering the diamond comes out back, which ensures its maximum play). This cut is designated Excellent. In fact, it does not matter where, when and by whom the stone is cut. If, as a result of certification, the cut is determined to be Excellent, this does not mean that it was necessarily cut in the USSR or Russia. They cost more, since in order to obtain ideal proportions, the loss of the starting material (diamond) increases, which leads to an increase in cost! And if all over the world cutters are trying to find the ideal balance between cost (losses) and cutting quality (price of the diamond), then in Soviet times the task was somewhat different. Now a few facts 1. Diamond production in the Russian Federation in 2014 by ALROSA amounted to 36 carats, the volume of exports from the Russian Federation in 212 was 000 carats (sources: ALROSA official website, data from the Ministry of Finance of the Russian Federation), that is, they exported more than they produced (volume of rough and polished diamond reserves on the Ministry of Finance website). Russia’s share in the global diamond market is about 30%.
2. Diamond cutting in Russia is one of the least profitable manufacturing industries, the profit does not exceed 5%. 3. Russia occupies 4% of the world cutting market, and more than 60% of all diamonds produced in the world are cut in India. 4. Russian cutters specialize in a certain group of precious stones. Unable to compete with India in cutting costs, they shifted towards processing large goods with rising costs. 5. Russia mainly processes high-quality diamonds larger than 0,5 carats. 6. The sales volume of the Smolensk plant “Kristall” on the domestic market is about 3% (source Rough&Polished), and 97% of production is exported. Thus, the following can be stated:

The quality of the cut is determined by an international laboratory according to the standards proposed by the GIA. Regardless of where the diamond was cut, if the quality of its cut, polishing and symmetry is determined to be Excellent, then it falls within the logic of the definition of “Russian cut”.

Around the world, the best gemstones are designated Triple Excellent (3EX or EX EX EX). That is, if you want to purchase the “perfect” diamond, look for one with a GIA certificate and 3EX cut specifications. This will be a stone with a “Russian cut”; That is, from a practical point of view, “Yakut Diamonds” and “Russian Cut” are Russian brands that are wisely used by companies to increase their own sales, which is generally not bad. You can read more about the main parameters of a gemstone in the “About Diamonds” section. Now you can return to the main page of the site or select jewelry in the “Rings”, “Earrings” or “Pendants” sections. Barnaul “Crystal” is the only factory outside the Urals that produces and processes diamonds. In 2023, a major modernization of production was carried out here. As a result, the processing time for precious stones was reduced from four hours to four minutes. Now the plant produces more than 75 thousand diamonds a year, which are then sold in all regions of Russia. An amic.ru correspondent visited “Crystal” and saw how “girls’ best friends” are made.

Diamond in four minutes

Before becoming a diamond, diamonds at the Barnaul Kristall plant undergo six to seven stages of processing, passing through the hands of at least seven specialists: technologists, technical managers, sorters, and processors. Just a year ago, this process took tens of times longer. But in 2023, the company acquired powerful Indian-made laser equipment, which made it possible to reduce four operations of the technological cycle at once and thereby ensure 80 percent diamond readiness.

“The laser cuts through a diamond, the hardest mineral, in four minutes. With mechanical sawing, the process took three to four hours. And it did not give such accuracy,” recalls the production manager Stanislav Koshelev.

Today, on average, it takes workers one day to produce one diamond, and about a month for a batch of 200 pieces. Yakut diamonds are used as raw materials. Photo: Evgeny Sapozhnikov The average weight of diamonds processed by the company is 0,4 carats (there are five carats in one gram. Prim. a row.). But there are specimens over 10 carats. They are rarely found in nature, and their value is determined by a special commission. Such giant stones fall into the hands of only the most experienced cutters. Such specialists can process up to five to six stones per day. The shapes of diamond cuts produced at the plant are very different. There are ten of them in total: round, pear, cushion, oval and others. There are even heart-shaped ones. Classic ones are round in shape; they, like 90% of other stones, have 57 facets. Why do diamonds have 57 sides?
A cut of 57 facets is the standard by which the whole world works. It is considered the most successful and allows you to process both large and small stones. This number of facets is needed for the stone to reveal all its properties. Processing diamonds and turning them into polished diamonds is a multi-step process. First, raw stones that have lain for hundreds of years in the depths of nature are scanned and a detailed 3D model is created, taking into account all their defects. Then the stone is “cut” on a computer, trying to fit the maximum number of diamonds into it – you need to use the semi-finished product as efficiently as possible. Then the stones are polished, cut with a laser and sent for cutting, where they take their future shape. During processing, the stone loses approximately half its weight. But a diamond becomes a diamond only at the last and most important stage – the evaluation stage. Experienced appraisers carefully examine diamonds for color, quality, weight, stone purity and other parameters. All this affects the cost. And the differences can be very significant. The most valuable, for example, is considered a colorless diamond, and the cheapest is brown.

“If the appraiser makes a mistake and puts the color worse than it is, then the stone will be sold unreasonably cheap. But you can’t exaggerate the color either: this is the reputation of both the manufacturer and the company,” notes Stanislav Koshelev.

No machine can do the work of an appraiser, like a cutter, with the same accuracy – so machines will definitely not replace a person for a long time, assures Koshelev.

Competition has increased

Now the plant produces about 75 thousand diamonds a year, which is about 20% more than five years ago. The products produced by the plant are supplied to jewelry retail chains throughout the country. Just a few years ago, diamonds from Barnaul-based Kristall were mainly exported to the USA, Europe, China and other countries. In 2022, with the introduction of sanctions, the enterprise was forced to adapt to states friendly to Russia and the domestic market.

“Most jewelry companies, if we are talking specifically about natural diamonds, sell products that are produced mainly in Smolensk and Barnaul. The market turned out to be quite capacious, our products are in great demand,” notes the branch director Alexander Rout.

At the same time, high competition prevents the company from entering international sales markets (or, more precisely, remaining confidently in them), adds Stanislav Koshelev. India confidently occupies the leadership in the niche: compared to Russia, the country processes several times more diamonds, and the main reason is the modern equipment used in production.

“India is at the forefront of equipment. The IT sector is very developed there. A good IT specialist is the key to success, since all modern equipment is very dependent on software. Due to competition, the margin (the difference between revenue and costs, in this case the cost of diamonds. – Approx. Ed.) is decreasing every year. If earlier it was 10-15%, now 2-3% is considered a good indicator,” Koshelev shares the subtleties.

In the 90s, the company employed almost 500-600 cutters, now there are about 80. In total, about 400 people are employed in this area in Russia. It is difficult to find new specialists; there are simply no ready-made cutters: it is no longer possible to get an education in this field, as before, so the company itself trains the craftsmen. But not everyone passes the “diamond filter”. Andrey Morozov has been working in the diamond industry for 37 years, and now he passes on his experience to new employees.

“Each stone is individual; there are no repeating stones in nature. Your head is constantly working: you think about where to add an angle, where to decrease it, where to turn it so that it is perfect. Thinking, perseverance, creativity – not everyone has these qualities. For some it comes easy, for others it is more difficult, and they cannot increase the speed. Now I have a girl intern, 19 years old, I ask: well, how. She says: “I will stay and not go anywhere.” She likes it,” notes the technologist.

Even now, with such experience behind him, Andrei Nikolaevich admits that he is often dissatisfied with his work. So, being a cutter is not a field where there is a limit to perfection, he notes.

“If the soul is invested”

It takes about six months to become a diamond cutter. Someone can master science in a shorter period of time. The main thing is that the person burns, the interlocutor says.

“Stones really stand out if you feel like you put a soul into them. A diamond cut with love even plays differently,” notes the branch director.

Alena Schreiber was involved in the distribution of cosmetics two years ago. In August 2022, I accidentally found out that there was a vacancy at the company. I went through an interview, then a six-month training and stayed for good.

“As a trainee cutter I have only been working for a year. Due to a lack of experience, there are difficulties: it is not always possible to see defects in a diamond or correct something, but it is very exciting to turn a stone that comes to us in a not very attractive form into a perfect diamond,” says Alena.

Now Kristall is ready to hire about 30 new employees. Young professionals are attracted to work through various support measures, including compensation for 2/3 of housing rent and a voluntary health insurance program. Also, from March 1, employees will begin to receive compensation for part of their mortgage interest. Interesting: The first diamond was produced at the Barnaul factory on June 21, 1973. At that time, the enterprise was still separate and was not part of the Alrosa group of leading Russian diamond processing companies. In total, in Russia they process this mineral only in three cities: Moscow, Smolensk and Barnaul.