World running out of diamonds: De Beers

London,(IANS) The supply of diamonds in the world is dwindling, said De Beers, the biggest miner of the sparkling gem.

De Beers said it will reduce its production to extend the life of its mines, The Telegraph reported Monday.

Des Kilalea, a diamond analyst at RBC Capital Markets, said that taking into account the moderated output diamond prices could rise by at least 5 percent a year for the next five years.

The diamond industry, in the past 20 years, has not found new diamond deposits to match the two biggest mines in Africa, which are owned by De Beers, or the Russian mines of Alrosa.

De Beers accounts for 40 percent of global rough diamond sales.