> From here, there are two rounds of sorting: gem quality and industrial grade. Most of mined diamonds never become jewellery. They go to cutting tools, drill bits, and grinding equipment.

For industrial use synthetic diamond is actually quite cheap now. The vast majority of industrial diamonds used today are synthetic and they've been affordable since the 1950s (?). Industrial-grade synthetic diamond grit or powder can cost as little as a few dollars per carat. This makes it far cheaper than mining natural diamonds for the same applications.

Diamond grit for polishing and grinding is now a cheap commodity. In 10,000 ct. lots, I pay from 5¢/ct. to 30¢/ct. depending on specific grit properties. I haven't searched for it, but diamond sandpaper should be a thing at these prices.