Australian Mining (AM) reports that Australia's diamond mining industry will be among the country’s fastest declining industries in 2016, along with petroleum refining and contract mining, and its decline is projected to continue at an annual compound decline of 4% over the next five years. Kimberley Diamonds' closure of its Ellendale Mine in 2015 was a major blow to diamond production in 2015, and the report says this will contribute to a 13.3% decline in industry revenue in 2015-16. IBISWorld senior industry analyst Spencer Little said that, “The industry’s performance has been volatile over the past five years, due to fluctuating production volumes and prices; a significant drop in revenue in 2013-14, and another expected fall in revenue in 2015-16 are expected to underpin the industry's poor performance over the period.“
This fall, writes AM, while in line with the general decline in mining, has been precipitated by Australia oversupplying the market. “The industry is heavily export-oriented and industry players depend on global demand for diamonds. According to the Department of Industry, Innovation and Science, in 2013-14 export volumes of Australian diamonds dropped from 12.2 million carats to 10.4 million carats,” IBISWorld added.