Diamond cutting tools are used in many industrial applications such as in the processing of ornamental stones. In the northwest region of the State of Rio de Janeiro this is a major business involving more than 200 industries. A considerable number of used circular sawblades with diamond-impregnated teeth are scrapped as a consequence of this industrial activity. A previous estimation indicated that a relatively large amount of diamonds remain in the teeth of the scrapped sawblades. Therefore, the present work investigated, primarily, the possibility of recovering these diamonds. The damage caused in the diamonds by their use as part of a cutting system was also studied. A "cover up" mechanism based on the protection provided by the matrix metal of the saw blades teeth composite material is suggested to explain the relatively good conditions found in most recovered diamonds. (C) 2003 Published by Elsevier B.V.