Diamonds were first discovered in Venezuela in 1902. There followed sporadic and limited production from that point until 1913. In 1915, diamondiferous fields were discovered in Rio Paragua and Rio Caroni. The first diamond company was formed, known as Compania Anonima El Pao, which lasted until 1943.

Around 1927, the settlers arrived in Gran Sabana, and by 1930, diamond exploitation had initiated with Brazilian collaboration. While considerable mining activity ensued at the Paratepui and Rio Surukun areas, production was limited. Gradually, additional diamond sites were exploited at the upper Caroni River (Santa Teresa, Agua Negra, Salva La Patria, El Vale, and El Polaco). However, production was limited and inconsistent through 1942.

In 1942, the recovery of a 154-carat diamond crystal, the largest found in Venezuela and known as El Liberdador, created intense interest and a diamond rush followed. That same year, additional diamondiferous areas were discovered at Rio Icabaru, Rio Uaiparu, Guari, and others. In subsequent years still other areas were exploited: In Gran Sabana, Uriman, Capaura, and Avequi in 1943; Cinco Ranchos in 1950; and in the fields at upper Paragua: El Casabe, Manare, Oris, Asa, and Chiguao in 1954.

The introduction of mass mechanized mining operations then dramatically increased the production of Venezuelan diamonds. Diamondiferous areas at the lower Caroni — Caruachi, Playa Blanca, Rio Claro, and Merey – were exploited in 1961. In 1963, the practical gold and diamond method of mechanized barges, known locally as chupadoras, was introduced, which also resulted in a considerable increase in production. In 1968, the rich deposits of San Salvador de Paul and the nearby areas of Rio Parupa were exploited, followed by the most important diamondiferous deposits at Guianiamo in 1970. Guianiamo alone produced 85% of the total gem-quality diamonds mined in Venezuela for the period 1970-1978. During the last decade, diamond production there has risen steadily.

Diamond mining

Alluvial diamonds are mined by local workers in small syndicates. The main areas are Santa Elana in the southernmost part of the country on the border with Brazil and the Guaniamo River in Western Venezuela where diamondiferous kimberlite sills were discovered in 1972.

Venezuela “voluntarily” withdrew from the Kimberley Process for two years in 2008 after it was threatened with expulsion. It seems that there has since been little effort made to make changes, as diamond mining and smuggling continue unabated. There have been no official diamond exports from Venezuela for many years despite an active mining sector.