Zimbabwe Govt okays total control of diamond mines

Zimbabwe plans to enforce a 100% ownership of diamonds, among a raft of measures designed to leverage on the country’s mining sector.

The move is set to plug leakages and ensure that the country benefits from its natural resources. The move is likely to set government on a collision course with investors already operating in the diamond industry.

In his mid-term fiscal policy review on Wednesday, Finance minister, Tendai Biti, said government had approved a diamond policy to enforce government’s 100% ownership of diamonds.

Biti said government had also approved the enactment of the Diamond Exploration Act that issues a directive to prohibit the exportation of unpolished or uncut diamonds.

He said there would be immediate separation of diamond mining from marketing.

CIBJO President addresses the ECOSOC High Level Segment

 

CIBJO President Gaetano Cavalieri has addressed the annual High Level Segment of the Economic and Social Council (ECOSOC) of the United Nations in New York, expressing the concern of the jewellery industry that the global economic crisis is affecting job creation in the business sector, and consequently is undermining the fight against poverty. 

 

The focus of this year’s ECOSOC High Level Segment was the global job crunch, and the need to stimulate the creation of decent and sustainable employment. The theme of the event was "Promoting productive capacity and decent work to eradicate poverty in the context of inclusive sustainable and equitable economic growth at all levels for achieving the Millennium Developments Goals (MDG)." Speaking at the opening, ECOSOC President Milos Koterec put the figure of unemployed at 205 million worldwide, and said that "work is worryingly difficult to find, and finding decent, meaningful work, harder still."  

 

ECOSOC is the UN forum in which representatives of government, business and civil society discuss the world’s economic, social and environmental challenges, and policy recommendations are made. More than 500 delegates attended the High Level Segment in New York, where CIBJO was the world jewellery industry’s sole representative. CIBJO has held consultative status in ECOSOC since 2006.  

 

Delivering his remarks to the High Level Segment, Dr. Cavalieri expressed the jewellery industry’s continuing support for the United National development objectives. "We strongly promote at CIBJO the 10 Global Compact Principles for our industries as well as our support for the achievement of the UN Millennium Goals by 2015," he said.  

 

However, noted the CIBJO President, "global recession and the current world financial crisis are accelerating poverty worldwide, and this is defeating the first Millennium Development Goal to eradicate poverty. Chronic unemployment figures and the social exclusion of millions of the world’s youth must be resolved to avoid a lost generation of young workers." 

 

Dr. Cavalieri described to participants at the ECOSOC meeting programmes that have been undertaken to stimulate grass-roots economic and social development in the countries and regions in which the jewellery and gemstone sectors are active. This includes the establishment in 2011 in Antwerp by CIBJO with partners of an International Training Centre for Corporate Opportunities (ITCCO), which provides training to a young generation from developing countries, in order to help them adapt to the new business environment, improve their skills and create jobs which can compete in the global market. 

 

"We believe that it is the duty of each and every industrial sector to provide training opportunities for the younger generations, in order to better prepare them for the evolving labour market which now operates in a very competitive global environment," the CIBJO President said. "Education and training are a prerequisite for the eradication of poverty in the world."  

 

During his stay in New York, Dr. Cavalieri held a private meeting with Ambassador Luis Alfonso de Alba, the vice president of ECOSOC. Also serving as the Permanent Representative of Mexico to the United Nations and other international organizations in Geneva, Ambassador de Alba earlier served as the first ever President of the United Nations Human Rights Council.  

 

At an ECOSOC side event, Dr. Cavalieri was a participant in a panel discussion at the UN Headquarters looking at the impact of the financial crisis on youth unemployment in partnership with "The Global Foundation for Democracy and Development." Among the other panel members were representatives of the Dominican Republic, the Special Coordinator for Civil Society in Office of the President of the 66th Session of the UN General Assembly, and the head of the office for ECOSOC Support and Coordination.  

 

The panel discussion recognized that young people are playing an increasingly important role in social movements calling for democracy, equal opportunities and better employment, but noted UN data that indicates that they are three times more likely than adults to be unemployed. Dr Cavalieri concluded the panel on youth unemployment by stressing "the importance of giving youth our testimony on going forward in life and bringing the basic principles of family with them."  

 

The 2012 ECOSOC High-Level Segment concluded with the adoption on July 10 of a draft ministerial declaration that had been submitted by the president. The resolution encourages strong collaboration and partnerships in order to address the challenges of youth unemployment. Furthermore, it urges the sharing of experiences and effective practices, along with the creation and strengthening of youth programmes, such as the United Nations Volunteers, that focus on employment.

Anglo – De Beers deal clears first hurdle

Oppenheimer family’s 40% stake in De Beers has been approved by the Department of Mineral Resources

The $5,1bn purchase of the Oppenheimer family’s 40% stake in De Beers by Anglo American has completed one hurdle of the sale.

Anglo has opted to grow aggressively in diamonds field unlike BHP Billiton and Rio Tinto who are seeking buyers for their diamond assets.

The Botswana government has the option to lift its holding to 25%, buying part of the Oppenheimer stake. They currently have a 15% stake in De Beers.

De Beers two major mines Jwaneng mine in Botswana and Venetia mine in South Africa produce most of the gem quality diamonds contributing to De Beers production.

Capital Markets have forecast soft prices for rough diamonds. But De Beers CEO Philippe Mellier has said the longer-term outlook for diamonds is strong, with strong demand from China and India for diamond jewellery.

 

Rough diamond prices to remain under pressure.

The rough diamond market is in a difficult phase, with slowing diamond sales, falling prices and continued tight liquidity in the diamond cutting centres.
 
Weaker economic prospects in China have negatively impacted on the short-term outlook for the market despite the second half of the year traditionally providing better results than the first half.
 
The traditional Indian wedding season will also remain uncertain and unpredictable this year.
 
The DTC (Diamond Trading Company) sales have fallen short of its predicted Five hundred million in sales yielding only Four Hundred and Fifty million for the first two quarters of 2012.
 
The trading company has allowed sightholders to defer an estimated One Hundred million in rough diamond purchases for June into July.
 
De Beers CEO Philippe Mellier said that a scarcity in rough diamonds would drive the rough prices up and cause the luxury status of diamonds to intensify.

Diamonds go on display to mark Queen’s Jubilee

The exhibition features some of the most spectacular pieces from the monarch’s private collection.
 
The exhibition shows how over the past three centuries monarchs have used diamonds to display magnificence, whether in personal adornment or as a statement of power.
 
From the diminutive diamond crown worn by Queen Victoria throughout her widowhood, to the breath-taking Coronation Necklace, featuring a staggering 22.48 carat pendant.

European Union diplomats are touring the controversial Marange diamond fields.

REVENUE FROM DIAMONDS IS SET TO CONTRIBUTE US$600 MILLION TO FISCUS THIS YEAR.

The diplomats will visit four companies, Mbada, Marange Resources, Diamond Mining Corporation (DMC) and Anjin. They will also visit the ZRP Diamond Base.

Diamonds from Marange have courted controversy amid calls by civil society organisations that there is no transparency in the marketing of the gems.

Finance minister Tendai Biti has been complaining that Anjin has not been remitting money to treasury. Anjin is a joint venture between the Chinese and the Zimbabwe Defence Industries.

Biti has said despite claims that the Zimbabwe Mining Development Corporation (ZMDC) owns Anjin, the state entity had no equity in the diamond producer.

 

DCLA updates Diamond Colour Master Set

DCLA is updating several master colour grading stones from the Official IDC Master Set.

The current diamond colour master stones D, E, F ,G, H, I and J are being retired and are now on sale collectively for AUD$52,000.

Offers of interest to purchase these stones can be submitted in writing to [email protected] for consideration. 

Trade Warning Issued

Large volumes of undisclosed man-made diamonds are believed to have entered the market after several hundred stones were sent to laboratories in Antwerp and Mumbai to be certified as natural diamonds.

A trade alert has been issued to laboratories worldwide, as the volumes of colourless synthetic ‎diamonds being released on the global markets have visibly increased and may perhaps ‎already be prevalent throughout diamond centres.

Roland Lorie, the CEO of the International Gemmological Institute (IGI), said that an initial parcel of 145 diamonds, followed by the full parcel of more than 600 diamonds had been submitted to the Antwerp laboratory, where subsequent testing proved the diamonds to be ‎synthetic CVD-created diamonds.

Around the same time, a smaller parcel was received by the Mumbai laboratory from two ‎individual parties. The laboratory found that all these sets of goods were CVD synthetic diamonds and likely ‎came from the same source. ‎

“A diamond dealer cannot tell the difference between natural and CVD synthetic diamonds ‎and it requires sophisticated machinery at the labs to make the necessary findings,” Lorie said. ‎‎“This means that there could be a large amount of undisclosed synthetic diamonds on the ‎market.”‎

The synthetic stones were bought on the open market by an unnamed diamond merchant at natural ‎diamond prices, and submitted them for certification after being ‎unable to sell them as a single parcel on the dealer market. Both the polished dealer and the supplier of the synthetic diamonds both believed ‎that the diamonds were natural diamonds.

The DTC has also found three recent instances of undisclosed CVD synthetic diamonds submitted to grading laboratories in Belgium, India and China. ‎Each instance was said to have similar characteristics and the diamonds are believed to have a common source. ‎

There are clear rules guiding the diamond trade surrounding the trade in misrepresented or undisclosed ‎products, whether intentional or not. All members of the World Federation of Diamond Bourses (WFDB) are required to ‎disclose diamonds that are synthetically produced as well as any treatments, and ‎any violations of these rules are referred to the ‎relevant body for disciplinary action which may include suspension, expulsion, fines or ‎other appropriate measures. ‎

‎“Together with the diamond laboratories, which have the means and technological ‎instruments to detect man-made and treated diamonds, our affiliated bourses provide ‎assistance in identification techniques and a secure structure,” said Avi Paz, President of the WFDB. “It is in the interest of ‎our global business that it remains transparent so that consumers can receive full disclosure ‎about the diamonds they purchase.”‎

DTC also commented that trading in misrepresented goods could undermine the integrity of the supply chain and cause irrevocable damage to reputation, damaging not only trade but consumer ‎confidence when buying diamonds. ‎
 

No Credit, No Cry

A hot-button topic in today’s diamond industry is the practice of extending credit to customers.

In several impassioned “State of the Diamond Industry” addresses, Rapaport Group Chairman Martin Rapaport said the jewelry industry cannot extend credit to customers anymore, and made clear his feelings on buying diamonds on credit (‘credit memo’).

“I’m going to blast the hell out of credit,” Rapaport said before launching into his tirade. “It makes me want to throw up.” He said that we simply cannot sell to people on credit anymore, and that diamonds at all levels of the trade must be sold to “real” buyers who actually have the money to pay for them.

“You need real people with real money,” he said. “We can’t memo our way out of the recession.”

“If you don’t have the money and are not a player we love you, but you’re not a player.”

The diamond market relies too heavily on credit to finance the jewelry sector, and hurts it when stores file for bankruptcy as happens all too frequently in today’s economy.

“Just say no to memo and encourage cash purchases”. The jewelry industry must avoid those who are not financially capable of buying stones and paying their debts.

“You don’t have money, go screw yourself. That’s the bottom line,” Rapaport said, a statement that drew a hearty round of applause from the audience.

DCLA would like to help legitimate industry members protect their money and time by limiting bad payments and default debtors. As a central hub in the Australian market, DCLA is happy to verify and give good credit information to industry members.

Diamond dealers and jewellers are also welcome to call and receive information on companies or individuals having defaulted on a payment.

Also, please note that DCLA will be closing all customer credit accounts outstanding for a period greater than 60 days. 

Workshop: Diamond Buying for Consumers

Friday 9th March – Sign up for our 2 to 3 hour hands on workshop and discover what you need to know to buy the right diamond at the right price.

Diamond Buying workshop topics include:

•  Detailed explanation and hands-on evaluation of the 4C’s of diamond grading. Participants will take part in the grading process to learn how the quality and value of a diamond is established.

•  Choosing the diamond shape, size, and quality right for you

•How to shop for a diamond and questions to ask jewellers

•How to read, understand, and compare Diamond Grading Certificates when shopping

•Explanation and identification of diamond treatments, and how they affect value

•Explanation and identification of synthetic diamonds, and how they affect value

Participants will have ample opportunity to ask questions throughout the workshop.
Spacing is limited, contact DCLA on 1300 66 3252(DCLA) to register and reserve your place.

Next Workshop: Friday March 9 at 1pm
Cost of workshop: $210+GST