Consider the following pairs: 

Country   Resource-rich in   
I. Botswana  Diamond   
II. Chile   Lithium   
III. Indonesia  Nickel  

In how many of the above rows is the given information correctly matched?   

  • Only one   
  • Only two   
  • All the three   
  • None   

Answer: (c) All the three 

  • Botswana is one of the world’s largest producers of diamonds by value. The discovery of diamonds in the 1960s transformed its economy. The country has maintained stable governance and efficient management of its diamond resources, especially through its partnership with De Beers.
  • Chile forms part of the “Lithium Triangle” along with Argentina and Bolivia. It has some of the largest lithium reserves in the world, primarily extracted from salt flats (like Salar de Atacama). Lithium is vital for batteries in electric vehicles and electronics.
  • Indonesia is the world’s largest producer of nickel. It holds vast reserves and has become a major player in the global nickel supply chain, crucial for stainless steel production and electric vehicle batteries. The country has also imposed export bans to encourage domestic processing.
Diamond
  • Mineralogy: Diamond is an allotrope of carbon and the hardest naturally occurring substance on Earth. It is 100% carbon, unlike graphite which is usually 95% carbon.
  • Geological Formation: Formed in the Earth’s mantle under extreme heat and pressure, diamonds are brought to the crust via volcanic activity. They are primarily found in Kimberlite or Lamproite pipes.
  • Industrial vs. Gem-Quality: Approximately 80% of global diamond production is used for industrial purposes (drilling, cutting, polishing) due to its hardness.
  • India’s Global Standing:
    • India is the world’s largest hub for cutting and polishing, handling over 90% of the global supply.
    • Surat, Gujarat is the primary centre for this industry.
    • Historically, India was the world’s only supplier of diamonds for nearly 3,000 years until discoveries in Brazil.
  • India’s Domestic Production:
    • Madhya Pradesh is the only state in India currently producing diamonds.
    • The Majhgaon Mine in Panna is the only mechanized diamond mine in Asia, operated by the National Mineral Development Corporation (NMDC).
    • Other notable Indian locations include the Wajrakarur Kimberlite field and the Krishna River basin in Andhra Pradesh.
Diamond-Producing Countries
  • Russia: The largest producer by volume and holder of the world’s largest reserves (~750 million carats). Major mines include Udachny and Mirny.
  • Botswana: The leading producer by value. It houses the Jwaneng mine, often called the “richest diamond mine in the world”.
  • Canada: Known for high-quality, ethical, and traceable diamonds. Key mines include Ekati and Diavik.
  • Democratic Republic of Congo (DRC): Africa’s largest producer by volume, though most of its output is industrial-grade.
  • South Africa: Famous for large, high-value stones like the Cullinan diamond. The Venetia mine is a major contributor.
  • Australia: Historically a top producer (Argyle Mine), though output has significantly fallen since the Argyle Mine closed in 2020. It was famous for pink and colored diamonds.
  • Namibia: Distinguished for its unique offshore marine mining operations on the ocean floor.
Top 10 diamond-producing countries in the world
Russia tops the list with a production level of around 37.32 million carats in 2023.