news – Page 14 – The Diamond Certification Laboratory of Australia (DCLA)

Artisanal small-scale diamond mining initiative launched

Petra Diamonds has launched an artisanal small-scale mining initiative in South Africa. This follows a process of extensive consultation and cooperation with relevant stakeholders.

These include the Department of Mineral Resources and Energy (DMR&E), as mining sector regulator, the Letsemeng Local Municipality, as elected representatives of the community, and the community itself.

Richard Duffy, CE of Petra Diamonds, comments:

“We regard this initiative as another milestone in the Petra legacy and we welcome the Koffiefontein Community Mining Primary Cooperative (KCM) artisanal miners as partners in our industry to complement our own operations and extract optimal benefit from the diamond reserves in Koffiefontein.

“We wish KCM all of the best with this venture and thank our Government and community partners for their continued support of both the project and the KCM.”

Hong Kong Protests Depress Luk Fook Sales

Luk Fook’s same-store sales fell 37% in the second fiscal quarter amid protests in Hong Kong and the continued impact of the US-China trade war.

Total same-store sales — at Luk Fook outlets open for more than a year — in Hong Kong and Macau dropped 39% in the three months ending September 30. Same-store gold sales plunged 46%, while gem-set-jewelry purchases slid 26%. The figures are for shops the jeweler operates itself, excluding franchises.

The decline was the “result of high gold prices, high base effect, together with the substantial decline in the number of visitors to Hong Kong due to recent ongoing social activities,” the company noted. “Both the sales volume and average selling price of gem-set jewelry products saw a double digit drop.” Luk Fook is negotiating its rental agreement with all of its landlords in Hong Kong to avoid having to cut jobs, it said.

Overall same-store sales in mainland China slipped 25%, with revenue from gold products falling 28% and gem-set jewelry dropping 18%. While stores in mainland China showed some improvement in the first two weeks of October, sales in Hong Kong and Macau declined even further after the close of the quarter, as the tourism rate to the area continued to descend, the retailer noted. The most recent figures, reported for August, showed a 42% drop in mainland visitors to Hong Kong, according to data from the Hong Kong Tourism Board.

At the end of the quarter, Luk Fook had 210 self-operated stores, of which 136 were in mainland China, 51 in Hong Kong, 12 in Macau and 11 in other locations. The retailer also has 1,745 licensed shops.

Source: Diamonds.net

More Brides Buying Their Own Engagement Rings

US women increasingly buy engagement rings for themselves, and spend more on them than their partners do, De Beers said Monday in its annual Diamond Insight Report.

The proportion of engagement rings financed solely by brides rose to 14% in 2017 from 11% in 2015 and 7% in 2013, according to the report. The trend reflects growth in female purchasing power, one of several social changes impacting the segment De Beers refers to as “commitment jewelry.”

During the four years ending 2017, grooms’ average outlay on engagement rings dropped 13%, while brides’ spending rose 19%, De Beers noted. In 2017, brides who reported buying the ring themselves shelled out an average of $4,400, while grooms spent $3,300, the company said.

“This emphasizes that growing purchasing power among women is a factor to be reckoned with in the commitment space, and not only when it comes to self-purchasing of diamond jewelry,” the company noted.

The 2019 Insight Report focuses on how consumers view love and diamonds amid changing attitudes to relationships. While marriages rates have declined in the US and engaged couples are waiting longer to tie the knot, “love remains a constant,” and consumers are buying diamonds in a wider variety of ways to symbolize it, De Beers explained.

Commitment jewelry — diamond engagement rings, and diamond wedding bands or rings for women — has retained its important place in the market, with just over 70% of US brides acquiring a diamond engagement ring.

However, the global value of men’s gifts of diamond jewelry to women before or after a wedding now exceeds the value of the engagement- and wedding-ring market. Women in the US who cohabit with their partners now account for 10% of the female diamond-jewelry market. Meanwhile, more than 70% of people in same-sex relationships view diamonds as important for celebrating life’s special events, the report continued.

Those four trends — commitment jewelry, “love gifting,” cohabitation and same-sex couples — are the focus of this year’s edition of the De Beers research. Consumers are still attracted to diamonds as an emblem of love, but are approaching the product in new ways that mirror those contemporary modes of living, the company argued.

“While diamonds are still seen as the ultimate symbols of love, the diamond industry must focus on continuing to offer jewelry, brands and retail experiences that meet the modern consumer’s desire for individual products and experiences that reflect their own unique love story,” said De Beers CEO Bruce Cleaver.

Source: Diamonds.net

Letšeng Yields 161ct. Rough

Gem Diamonds has recovered a diamond weighing 161 carats from its Letšeng mine in Lesotho.

The miner found the “high-quality” white, type IIa stone on October 28, it said. Including this rough, Gem Diamonds has retrieved five white stones over 100 carats this year. It also produced a further three of that size in other colors.

In 2018, the mine, known for its large, high-quality stones, yielded 15 diamonds over 100 carats.

Source: diamonds.net

De Beers banks on ‘diamonds are for me’

Anglo American unit De Beers said its 2019 marketing budget will exceed last year’s figure of $170 million and will focus on the biggest market the United States, where women lavishing diamonds on themselves has boosted sales.

While U.S. demand has held firm, the diamond market has weakened elsewhere and trade tensions and protests in Hong Kong have dented sales in China, the second largest diamond market.

But luxury groups see potential for growth in jewelry demand, as shown by LVMH’s nearly $14.5 billion offer, made public on Monday, to buy Tiffany & Co.

Esther Oberbeck, group head of strategy at De Beers, the world’s biggest diamond producer by value, said in an interview the company was about to launch new marketing campaigns, focused on the U.S. and China.

She did not specify the budget, but said De Beers’ 2019 spend would exceed last year’s $170 million and was the highest in more than a decade.

The campaigns, which she said would concentrate on “self-purchase and the bridal market”, are based on research carried out for De Beers, published on Monday.

It found the share of U.S. women buying their own engagement ring doubled from 7% to 14% over the five-year period 2013-2017 and that women on average spent a third more than men – $4,400 compared with $3,300.

De Beers sells rough diamonds and jewelry through its Forevermark brand.

Its research anticipates the rough diamond market will recover from a period of oversupply as some mines reach their end of their lives, notably Rio Tinto’s Argyle mine in Australia.

Global consumer demand for diamonds rose by 2% in 2018 to $76 billion and, in dollar terms, China and the United States were the fastest-growing regions, both increasing by 5% year on year, it said.

Demand for diamond jewelry in the U.S. rose by 5% to $36 billion, representing just under half of total global diamond jewelry demand, underpinned by “solid macro-economic factors”, the De Beers research found.

Diamonds are still the leading choice for engagement rings, whether between same sex or heterosexual couples.

But demand for diamond jewelry as a gift to mark all kinds of special occasions, including rewards to oneself, now outweighs demand directly related to weddings, De Beers said.

Source: Reuters

Botswana Diamonds receives mining permit for Marsfontein

Botswana Diamonds associate Vutomi Mining has secured a mining permit for the diamond bearing gravels and residual unprocessed stockpiles around the Marsfontein mine.

The Marsfontein diamond mine is located in Limpopo, South Africa.

Last month, Botswana Diamonds and Vutomi signed an agreement with Eurafrican Diamond Corporation to mine and process the identified deposits on the Marsfontein project.

EDC has started site establishment, while the commissioning is expected to begin within the next two weeks, thereby ramping up production.

Proceeds from Marsfontein will be used to fund ongoing exploration work in Botswana and South Africa.

Botswana Diamonds chairman John Teeling said: “I am delighted that the Marsfontein Mining Permit has been granted and that site establishment has already commenced.

“I look forward to updating shareholders as the company progresses towards being a diamond producer.”

The Marsfontein mine comprises a kimberlite blow development and the mine’s run of mine grade was 172cpht, at a bottom cut off of +1.2mm.

Marsfontein’s assortment was known to host fancy coloured diamonds.

Evaluation on the gravels and residual stockpiles in and around the mine, conducted at the time of mining, indicated them to be diamondiferous. These deposits were overlooked after the closure of the mine.

BOD, which has a 15% interest in Vutomi, entered an option and earn-in agreement with the latter in 2017 to explore its prospecting rights covering 50,000ha of prospective ground in the Limpopo, North-West and Free State Provinces of South Africa.

Last month, Vutomi secured environmental authorisation over part of the residual diamond-bearing gravels produced from the Marsfontein mine.

In June, Vutomi received approval to sell diamonds recovered during a bulk sampling programme at the Thorny River project.

Source: mining-technology

Alrosa finds diamond over 230 carats, largest in three years

The world’s top diamond producer by output, Alrosa , has unearthed a unique rough diamond weighing over 232 carats, the largest gem-quality specimen found in more than three years.

THE GEM nQUALITY OCTAHEDRON WAS FOUND AT THE UDACNHAYA KIMBERLITE, IN THE YAKUTIA REGION OF SIBERIA

Alrosa 232 carat rough diamond at yakutia

The diamond, dug up at the Udacnhaya kimberlite pipe on October 19, is an octahedron of yellowish hue with several chips. Its dimensions are 40х39х23 mm.

“Such large gem-quality crystals are extremely rare,” deputy chief executive, Evgeny Agureev, said in the statement. “We have not seen them since 2016, when two diamonds weighing over 200 carats were mined.”

Discovered in 1955, the Udachnaya kimberlite pipe is one of the largest primary diamond deposits in the Yakutia region of Siberia and globally. Its diamond output reached 2.385 million carats in the first nine months of 2019.

Alrosa produced more than 43 million carats of diamonds in 2018 from its Russian mines, or about 27% of the world’s total. That’s 18% more than its closest competitor, Anglo American’s De Beers.

Alrosa finds diamond over 230 carats, largest in three years

Source: mining.com

Phillips to Sell Rare Pink Diamond Collection

Rare pink diamonds from Rio Tinto’s Argyle mine in Australia will lead the upcoming Hong Kong Jewels and Jadeite auction at Phillips next month.

The collection comprises 16 jewelry pieces, each incorporating stones from the Argyle deposit, which is the only known source of pink diamonds and is due to close next year. Chief among these will be a ring that can be converted into a pair of ear studs. The piece, which features two heart-shaped, fancy-intense-purplish-pink diamonds, has a presale estimate of HKD 5.8 million to HKD 6.8 million ($739,860 to $867,423).

Other items include a pair of fancy pink diamond, seed pearl and white diamond earrings designed by London-based jeweler Sarah Ho, which is expected to fetch HKD 110,000 to HKD 150,000 ($14,031 to $19,134). A ring by Singapore-based gemologist Paige Parker, featuring pink, yellow and white diamonds, has a presale estimate of HKD 260,000 to HKD 320,000 ($33,166 to $40,820). Another ring by Hong Kong jewelry designer Karen Suen, in which pink and white diamonds are set around a conch pearl, is meanwhile valued at up to HKD 620,000 ($79,087).

Two further items from the collection, also up for auction, feature Columbian Muzo emeralds alongside Argyle pink diamonds. A necklace, expected to garner up to HKD 2.2 million ($280, 640), will go under the hammer alongside a pair of emerald, white and pink diamond pendant earrings with a presale estimate of up to HKD 630,000 ($80,367).

Additional pieces, outside of the pink diamond collection, include a jadeite bead and diamond necklace, which is expected to fetch between HKD 8.5 million and HKD 11 million ($1.1 million to $1.4 million). A rare Van Cleef & Arpels zip necklace, including diamonds, sapphires and lapis lazuli, is expected to net up to HKD 4.5 million ($574,042).

The auction will take place at the JW Marriott in Hong Kong on November 25. It will be preceded by a three-day public exhibition at the same location.

Source: Diamonds.net

Firestone Diamonds revenue down as recovery rates, sales fall

Africa-focused Firestone Diamonds (LON:FDI) reported Wednesday a fall in first-quarter revenue due mainly to a fall in recoveries at its Liqhobong mine in Lesotho, the company’s only operating mine, and lower sale prices.

In three months to September, Petra’s first quarter of its 2020 financial year, it recovered 201,091 carats, down from 208,572 carats in the final quarter of 2019.

During the quarter, a single sale of 168,612 carats took place, generating revenue of $10.6 million, down from $12.7 million in the previous quarter. The average value was $63 per carat, down from $71.

Operating costs, however, fell to $10.32 per tonne — below guidance — from $12.57 per tonne.

FIRESTONE EXPECTS TO RESUME OPERATIONS AT LIQHOBONG’S TREATMENT PLANT IN EARLY NOVEMBER.

Firestone is to review 2020 guidance, it said on Wednesday, following “unexpected” power cuts at Liqhobong, where the treatment plant may not be able to fully resume operations until early November.

The miner had previously said it expected diamond recoveries to be between 820,000 and 870,000 carats, with ore tonnes treated between 3.6 million and 3.8 million tonnes.

Diamond miners are struggling across the board, especially those producing cheaper and smaller stones, where there is an over-supply.

Increasing demand for synthetic diamonds has also weighed on prices. Man-made diamonds require less investment than mining natural stones and can offer more attractive margins.

Buyers, those that polish and cut diamonds for retailers, have been hit this year by lower prices and tighter credit, prompting them to delay purchases.

Tiffany’s reported in August a 3% decline in like-for-like sales, while shares in Signet, the world’s largest retailer of diamond jewellery, have lost more than 60% of their value this year.

De Beers, the world’s No.1 diamond miner by value, has responded by axing production — with a target of 31 million carats this year compared with 35.3 million in 2018. It has also given buyers more room to maneuver, by allowing them to refuse half the stones in many of the diamond parcels.

Firestone’s chief executive, Paul Bosma, said he expected prices for smaller diamonds to increase towards the end of 2020, in part due to the closure of Rio Tinto’s Argyle mine in Australia.

Source: mining.com

De Beers Slashes Output Amid Diamond Glut

De Beers’ production dropped in the third quarter as the miner responded to a decline in rough demand that has left it with an inflated stockpile of diamonds.

Output fell 14% to 7.4 million carats for the period amid planned mine closures and the transition from open-pit to underground mining at its Venetia project in South Africa, parent company Anglo American said Tuesday.

“We continue to produce to weaker market demand due to macroeconomic uncertainty as well as continued midstream weakness,” the miner noted. “Diamond inventory has continued to build during the third quarter due to the subdued market conditions. The elevated inventory levels are not expected to unwind until 2020.”

De Beers reduced production across all the countries in which it operates except Botswana, the miner said. In De Beers’ South African operations, production fell 60% to 535,000 carats due to the lower volumes at Venetia. Production also ceased at the Voorspoed project in the Free State province at the end of last year.

Output shrank 7% to 426,000 carats in Namibia following the shutdown of De Beers’ Elizabeth Bay land operations in September 2018. However, production remained flat in Botswana, at 5.7 million carats, with a 22% planned increase at its Orapa project offset by an 18% decrease at the Jwaneng mine.

In Canada, production dropped 34% to 779,000 carats, largely due to the closure of De Beers’ Victor operation in Ontario, which reached the end of its life earlier this year.

Sales volume jumped 48% year on year to 7.4 million carats, as the company held one more sight than during the same period a year ago. However, overall rough demand remained subdued, the miner explained.

In the first nine months of 2019, the miner produced 23 million carats, down 12% year on year. Its rough-diamond sales remained flat during the period.

Source: Diamonds.net