Leonardo DiCaprio-backed diamond venture in Spain sparks anger over alleged ‘unsustainable’ water use.Credit: Shutterstock, Featureflash Photo Agency
A high-tech diamond factory in Trujillo, Cáceres, is facing issues over water use. The state-of-the-art facility, partly financed by Leonardo DiCaprio (a minority shareholder), has found itself at the centre of local controversy as environmentalists argue that its water consumption could leave the town high and dry.
DiCaprio’s ‘titanic’ tie to Diamond Foundry
Diamond Foundry kicked off test production on January 17, marking Europe’s first-ever diamond manufacturing plant. While DiCaprio’s involvement has drawn media attention, he is just one of many shareholders – and does not hold any executive or operational role in the company. The project’s backers collectively injected €275 million into the first phase, a figure set to skyrocket to €675 million when fully operational.
By the end of 2025, the factory aims to have over 100 reactors churning out lab-grown diamonds, a futuristic alternative to traditional mining. But not everyone is dazzled by this ambitious initiative.
The hidden cost of sparkle?
Critics argue the project was approved without adequately assessing the impact on water resources, calling it ‘completely unsustainable.’ Initially, many feared the facility would rely on Trujillo’s drinking water supply, sparking concerns about potential shortages.
However, Diamond Foundry maintains it is not using – and does not plan to use – Trujillo’s municipal water. In this initial phase, the plant is supplied by the industrial estate’s water network, and the company says it plans to use reclaimed water from local treatment plants for future phases, pending authorisation from Trujillo Council and the Confederación Hidrográfica del Tajo.
Environmentalist controversy
On February 7, Asociación 25 de Marzo hosted a heated meeting where environmentalists – including Ecologistas en Acción’s Fernando Teijón and Aquanex director David Bejarano – warned about the potential consequences of ‘prioritising a business venture over local needs’.
At present, the factory’s full water recycling system is not yet in operation, but Diamond Foundry states that plans are underway to use reclaimed wastewater.
Environmentalists argue that prioritizing a private project over local needs is problematic. “In a region where water is scarce, we should be thinking about people first – not diamonds,” Teijón remarked.
Diamond Foundry, however, insists it holds all the necessary permits, adding that the approval process was lengthy and transparent.
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