news – Page 24 – The Diamond Certification Laboratory of Australia (DCLA)

Don’t punish African diamond producing countries without cause, WFDB President says

In his first -ever blog, Ernest Blom, president of the World Federation of Diamond Bourses, argues that the Kimberley Process Certification Scheme (KPCS) is slow because one of the most hot potatoes is ignored.

The KPCS, he wrote,is one of the great accomplishments of the worldwide diamond community of the last two decades, as more than 99.5 percent of the diamonds produced fall under a certification regime.

On the question why the KPCS agenda is moving so slowly, Blom says there is an elephant in the room nobody wants to acknowledge. “Of course, consuming nations have the right to demand that the strongest possible control mechanisms to guarantee that the diamonds imported into their countries are not tainted by any form of abuse. The same is also true for producing nations. They are entitled to protect the interests of their natural resources, ” Blom wrote.

“So what should producers say – in the interest of their nation – when large retail companies make an announcement that certain countries’ production is not allowed to be sold through them?” he asked . “Any decision taken at the KP or elsewhere affects the entire diamond industry, from mining to the manufacturers and dealers as well as to the smallest retail shop, which affects the lives of tens of millions of people.”

“It should not come as a surprise to anyone in Southern Africa that the enthusiasm to comply with what is perceived as a new form of economic colonialism is pretty limited. When countries are asked to make rules which could hurt them immediately once agreed upon it is difficult to find common ground.”

“If KP Participants are faced with “prima facie” judgments by large corporations and feel the enormous commercial consequences in their supply chain – and this without any written rule or law – then one should not be surprised at their reluctance to have a rule adopted in a formal manner and included in the KP Core Document.” Blom continued and said that there should be a rule in the current definition of conflict diamonds that includes any systemic violence.

At the same time, the objective analysis of facts should be the cornerstone of verification of allegations, and “trial by media” cannot be part of that solution. “This is the elephant that the Indian KP Chair has to ride. If he can do that successfully and neutralize what is perceived as a real threat of becoming excluded, he will have accomplished what many have failed to achieve in the past 10 years. From the World Federation of Diamond Bourses, we wish Shri Alok Vardan Chaturvedi lots of luck in this major task.”

Source: IDEX

Tango Averages $1.4K/ct. at Rough Sale

Tango Mining sold a 19.87-carat rough diamond for $4,358 per carat, one of a number of high-value stones up for tender from its Oena project in South Africa.

The miner sold 230 stones totaling 531.82 carats from its May 9 to July 7 production. It achieved an average price of $1,382 per carat for rough at the sale.

The company also sold a 49.6-carat diamond for $2,561 per carat, a 16.65-carat rough for $2,126 per carat, and a 24.97-carat stone for $1,101 per carat.

In addition, Tango is conducting trial mining in Angola and an exploration project in Liberia.

Source: Diamonds.net

Belgium Trade Cuts Diamond-Research Funding

The Antwerp World Diamond Centre (AWDC) will no longer provide financial backing to the city’s diamond-technology unit, citing difficult conditions in the local industry.

“As a result of the high cost of labor in our country, almost the entirety of our diamond manufacturing has relocated abroad,” AWDC spokeswoman Margaux Donckier said Friday.

The AWDC established the Scientific and Technical Research Center for Diamond (WTOCD) in 1977 to support the Belgian diamond-manufacturing sector. The venture was created to improve Antwerp’s competitive position in the global industry, and to develop and implement products for the trade.

“The market for these high-quality machines in Antwerp continues to shrink,” Donckier noted. “They are also too hi-tech, and too expensive, for the majority of polishing units in low-wage countries.”

Those factors have put WTOCD in a difficult situation, Donckier explained. AWDC tried to work with the research center on Fenix, a new, fully automated diamond-polishing process that it believed would offer a competitive edge to Antwerp’s diamond industry. However, the technology, which had been set to debut last September, is still not ready.

“The technology has the potential to spark a revolution in diamond polishing, but at this point we recognize that additional investments are needed to ready the product for the market,” Donckier added, stressing that AWDC cannot afford to invest more given the state of the market.

During the course of its operations, WTOCD created synthetics-detection equipment, such as the M-Screen+ machine, which is sold by HRD Antwerp.

Source: Diamonds.net

Lucara Names 1,758ct. Diamond ‘Rare Find’

Botswana’s largest rough diamond now has a name, following a public contest held by Lucara Diamond Corp.

The company chose to call the 1,758-carat stone Sewelô, which means “rare find” in the local Setswana language. It was the winning entry from more than 22,000 submissions.

“The largest diamond recovered in Botswana’s history was named by the people of Botswana this evening in a celebration of Botswana’s success,” Lucara CEO Eira Thomas said last week.

The miner has completed its analysis of the diamond — which it recovered in April from the Karowe mine’s high-value south lobe — and is considering its sale options, Thomas added.

Lucara announced the new name during a gala event, at which Botswana President Mokgweetsi Masisi was present.

Source: Diamonds.net

AGD finds exceptional 47.61 carat deep lemon yellow at Grib

AGD Diamonds, the firm that operates and owns the Grib diamond mine in northern Central Russia announced it has recovered a gem-quality, deep lemon yellow diamond, weighing 47.61 carats, on July 13, 2019.

The stone was found during the ore processing at Grib’s processing plant. In a news release in Russian, AGD said the diamond is of an extremely rare deep lemon hue and is classified as a “high end stone.” Experts noted its perfect octahedral shape and its high – flawless – clarity.

The company noted that the stone has been recovered undamaged thanks to the mine’s innovative, advanced mining technologies and processing by means of its XRT system.

Source: IDEX

Gem Diamonds recovers 140ct. Rough

Gem Diamonds has recovered a white diamond weighing 140 carats, the second over 100 carats it has reported this year.

It found the high-quality stone on July 6 at its Letšeng mine in Lesotho, the company said Monday. In March, it found a 161-carat white diamond at the deposit.

The miner recently recovered two yellow diamonds from Letšeng weighing more than 100 carats. It retrieved a 134-carat stone in March, and another weighing 135-carats last month.

So far this year, Gem Diamonds has recovered four diamonds over 100 carats. In 2018, it unearthed a total of 15.

Source: Diamonds.net

Brewing Diamond Industry Crisis Prompts De Beers to Cut Output

De Beers trimmed its production plans for this year as the world’s biggest diamond producer responds to a brewing industry crisis that’s hitting demand for its stones.

The Anglo American Plc unit will now mine about 31 million carats in 2019, at the bottom end of a previous forecast range. The company, once the monopoly supplier of diamonds, has a longstanding strategy to match supply with demand.

The diamond industry’s engine room, dominated by family-run businesses that cut, polish and trade the stones, is struggling to make money amid a flood of polished diamonds and stagnant consumer purchasing. That’s led to a slump in demand for the rough stones that De Beers mines from Botswana to Canada.

De Beers Diamond Sales Keep Dropping as Weak Patch Drags on

The weakness is showing up in the company’s sales, which are down about $500 million so far this year compared with 2018. The company has already gone unusually far in offering flexibility for its customers — allowing them to defer agreed purchases and lower the number of diamonds they plan to buy this year.

De Beers had already planned to produce a lot less diamonds than last year, when it dug up more than 35 million carats, the most since the global financial crisis. First-half output of the stones was 15.6 million carats, 11% lower than in 2018. The average selling price also fell 7%.

“Demand for rough diamonds remains subdued as a result of challenges in the midstream, with higher polished inventories, and caution due to macro-economic uncertainty, including the U.S.- China trade tensions,” Anglo said Thursday.

Macquarie Group Ltd. said before today’s announcement that it expects De Beers to post first-half profit of $567 million. While that’s down on last year, it’s performing far better than its smaller rivals, many of whom have seen their market values plummet to multi-year lows.

Source: bloomberg

Alrosa Partners with Zimbabwe Mining Company

Alrosa has agreed to a joint venture with national miner Zimbabwe Consolidated Diamond Company (ZCDC) for exploring new diamond projects in the country.

The deal, which provides Alrosa with a 70% stake in any new greenfield deposits, encompasses geological exploration, diamond mining and independent sales of rough stones to external markets, the Russian miner said Tuesday.

“We are committed to productive work in the exploration of new, promising areas and subsequent diamond mining,” explained Alrosa deputy CEO Vladimir Marchenko. “Our specialists have been working in Zimbabwe for more than three months now, and the national authorities have been of great support to them. We have chosen various projects for the joint venture, and part of [those] will be launched this autumn.”

The company is primarily considering areas located in the Chimanimani region of Zimbabwe, Marchenko noted, stressing that Alrosa did not plan any operations in Marange, despite recent reports indicating it was considering the move. Zimbabwe’s Marange fields were a source of contention, after state security forces killed nearly 200 citizens in 2008 in an effort to clamp down on informal mining, resulting in the country’s removal from the Kimberley Process (KP). The KP reinstated Zimbabwe in 2011, but US sanctions against Marange diamonds remain in place.

“Alrosa only explores and considers the feasibility [in] other parts of the country,” it said. “[The company] has never, and under no circumstances, considered, and won’t consider, the possibility of entering the Marange region.”

In December, the miner established Alrosa Zimbabwe Limited, an affiliate company that will oversee all projects in the country.

Source: Diamonds.net

Venezuelans go after diamond-backed cryptocurrency Ponzi with $30M lawsuit

A group of Venezuelans that moved to the US to “start a new life” are suing a $30 million cryptocurrency Ponzi scheme that allegedly backed its coins with real diamonds.

On Friday last week, a group of Venezuelans submitted a lawsuit claiming they were fraudulently promised massive returns on investments into the supposed diamond-backed cryptocurrency, Argyle Coin, Law360 reports.

The perpetrators, Jose Angel Aman, Harold Seigel, and his son Jonathan Seigel, were reportedly running two diamond companies – Natural Diamonds and Eagle Financial – and an associated cryptocurrency business that offered the diamond-backed digital assets. According to the report, the perps defrauded over 300 investors.

The group of Venezuelans said they were amateur investors and were sucked into the $30 million scheme after being misled by promises of big returns. Natural Diamonds said it would buy and cut raw diamonds to sell on for a 24-percent return.

The Venezuelans initially invested in Eagle Financial, which also leveraged Seigel’s reputation as a supposed diamond expert to trade high-end diamonds.

“[Eagle Financial] and its principals overstated their experience in the diamond and jewelry businesses to lure investors into trusting [Eagle Financial] and its principals with their investment,” the court document reads.

In reality, the funds that were invested in Eagle Financial and Natural Diamonds were being used to repay earlier investors.

Eventually money ran out, so Aman created Argyle Coin to continue luring investors in an attempt to keep the scheme running. Argyle Coin reportedly offered “risk-free” investments into a diamond-backed cryptocurrency.

However, the digital asset was never developed. The funds beguiled from investors were again used to pay off earlier investors of Eagle Financial and Natural Diamonds.

Aman, Seigel, and Seigel allegedly secured the cryptocurrency with a $25 million performance bond and physical diamonds. But the Venezuelan’s calls for evidence of this and for access to digital wallets containing Argyle Coins, went unanswered.

A troubling cryptocurrency
In April, more than a dozen lawsuits were filed by those lured by Aman and his fake diamonds and cryptocurrency, Palm Beach Daily News reported.

In May this year, the Securities and Exchange Commission (SEC) filed a suit against Argyle Coin forcing it to cease trading and freeze its accounts, calling it a Ponzi scheme. The halt also prevented Argyle Coin from undertaking its initial coin offering.

All three of Aman’s firms were charged at the time, The Wall Street Journal reports.

The scheme began in 2014 when Aman began offering investments in Natural Diamonds, promising the return of 24 percent on top of initial investments, within two years.

Aman and his accomplices then sold investment contracts in Eagle Financial in 2015, and used the funds to repay earlier investors, WSJ says. Aman was also said to be using the funds to live a “lavish lifestyle,” another report stated. Eventually Argyle Coin was created to perpetuate the scheme.

The group of seven Venezuelans are the latest to join a growing list of parties going after Argyle Coin and its deceptive “creators.”

Source: thenextweb.com

Jobs hit as diamond industry cuts output

The US and China consume 60 per cent of the world’s production of diamonds. Recently consumer demand in these key markets is either depressed or subdued due to various reasons.

MSME-dominated diamond cutting and polishing industry is facing a crisis. Several units have reduced their production days and thousands of labourers have gone out of job. Working capital crunch, sluggish demand from China and falling polished diamond prices have been affecting the industry. Jewellery makers too are worried about the increase in the customs duty of gold and silver.

“At least 30 per cent of the MSMEs, which are into polishing works, have reduced their capacity utilization.

Instead of six days, now they are working five days. These are units that procure raw materials from larger companies and return them after polishing. Further, several units in Saurashtra and north Gujarat are affected to the extent that thousands have gone out of job. These units employ 10 to 15 workers. Around 10,000 to 15,000 are out of work and have returned to agricultural jobs,” said Dinesh Navadiya, Member of Surat Diamond Association.

According to him, multiple issues are affecting the industry. Companies have been facing working capital crunch due to shortage of bank finance. While domestic banks have cut their borrowing limits to the gems and jewellery sector, the PNB scam has also made it difficult for exporters to credit from international agencies for buying roughs. Delayed GST refunds too are blocking the working capital.

“Liquidity crunch and lack of adequate finance to the sector have added to the woes. This has resulted in factories limiting their production,” said GJEPC Chairman Pramod Kumar Agrawal.

The off-take of polished diamonds by China either directly or through Hong Kong has come down considerably with the trade war. Weaker Yuan has made imports costly for the jewellery sector.

“The US and China consume 60 per cent of the world’s production of diamonds. Recently consumer demand in these key markets is either depressed or subdued due to various reasons. There is a recessionary trend in China. Retail sales are down. The US-China trade war is adding to the volatility and uncertainty. There is destocking by retailers in major consuming countries such as the US and China and they are not reordering,” said Agrawal.

While the demand is slow, the polished diamond prices too have been coming down. Diamonds of one carat and more have been seeing continuous erosion of prices. This has forced the companies to limit their rough purchases. In caratage terms, import of rough diamonds and export of polished diamonds are down by around 23 per cent in the first two months of this fiscal. It was down 13 per cent in last fiscal.

Source: mydigitalfc