Maruti Impex, described as one of the world’s biggest manufacturers of small natural diamonds, is halting operations, and has advised its 15,000 workers to seek employment elsewhere.
The company’s founder, Suresh Lakhani, aged 45, suffered a stroke three months ago and remains in a coma.
He’s been the driving force behind the business, which he launched in 1995 when he was just 16 years old. He is said to be the sole decision maker.
The future of Maruti Impex, which operates over 100 units, directly and indirectly, in Surat, Bhavnagar, Amreli, and Junagadh, is now uncertain.
Staff were informed of the closure by audio message, just as diamond units re-open after the Diwali break.
They received salaries up to the holiday, but have been told it’s not clear when operations could resume. The company made mention of “three or four months”.
Family members stepped in short term following Lakhani’s stroke, but have reportedly decided to pause operations because of weak market conditions.
Times of India quotes Dinesh Navadiya, chairman of the Indian Diamond Institute, as saying: “Without his (Lakhani’s) leadership and given the current challenging market conditions, the management is unable to continue operations.”
Lakhani describes himself on LinkedIn as a “self-made entrepreneur and philanthropist who has built a successful global business – “Maruti Impex” from scratch. Maruti Impex is one of the largest companies in the world in cut and polished diamonds.”
Botswana’s central bank left its main lending rate unchanged on Thursday, saying the economy was expected to operate below capacity and not generate demand-driven inflationary pressures because of a slump in the global diamond market.
The Bank of Botswana held its Monetary Policy Rate at 1.90% for the second policy meeting in a row. The rate is based on a seven-day instrument.
“The economy will contract this year primarily due to the downturn in the global diamond market and moderately recover next year,” central bank Governor Cornelius Dekop told a news conference.
The southern African country’s economy is largely dependent on the export of diamonds, and declining earnings from the precious stone have limited government spending.
The central bank also lowered its primary reserve requirement to 0% from 2.5% due to significantly reduced liquidity in the banking system.
Dekop said inflation was expected to average 2.9% in 2024 and 3.3% in 2025, compared with forecasts of 2.8% and 3.1% given at the bank’s previous monetary policy meeting in November.
The Bank of Botswana prefers inflation between 3% and 6% over the medium term. Annual inflation stood at 1.6% in October.
Diversified mining company Rio Tinto’s second Beyond Rare tender has achieved a strong result, underscoring the rarity and unique provenance of the diamonds on offer.
The auction, which featured some of the world’s most coveted natural fancy coloured diamonds, also showcased the continuing global demand for these rare treasures.
The collection, which comprises 76 diamonds across 48 lots, included an exceptional mix of pink, red, and violet diamonds from the now-closed Argyle diamond mine in Australia, as well as white and yellow diamonds from Rio Tinto’s Diavik mine in Canada.
For the first time, the tender also included seven “Old Masters”, notable historic diamonds from the Argyle mine, further elevating the event’s appeal to collectors.
The tender saw successful bids from 12 bidders spanning Australia, Europe, Japan, Hong Kong, the Middle East, Singapore, and North America.
“The continued strong global interest in highly collectible natural coloured diamonds and the resulting value creation, reflects their stature as works of art to be treasured for future generations,” commented Rio Tinto Minerals CEO Sinead Kaufman.
One standout lot, Lot 40, which featured a 4.04-ct pear-shaped pure white diamond from the Diavik mine, alongside two rare pear-shaped violet diamonds from the Argyle mine, was entrusted to Danish luxury jeweller Hartmanns. The company will work with Glajz, an Argyle Pink Diamonds Icon Partner, to create a one-of-a-kind heirloom jewellery piece from these diamonds.
“I am honoured to be creating a jewelled treasure that reflects each magnificent birthplace of these three esteemed diamonds – Argyle in the remote East Kimberley region of Western Australia and Diavik, just below the Arctic Circle on the frozen edge of the earth in Canada’s Northwest Territories,” said Hartmanns owner Ulrik Hartmann.
Rio Tinto’s Argyle diamond mine, which ceased production in November 2020, was the source of nearly entirely the world’s total supply of rare pink and red diamonds. With 37 years of production, Rio Tinto continues to manage the Argyle Pink Diamonds brand, facilitating sales of remaining inventory and collaborating with prominent jewellers globally.
In addition to owning the Argyle Pink Diamonds™brand, Rio Tinto is the majority owner and operator of the Diavik mine in Canada. The company also continues to explore new opportunities in the diamond sector, with a recent joint venture agreement with Endiama, the national diamond mining company of Angola, to explore the Chiri kimberlite in Angola’s Lunda Sul province.
De Beers has reportedly lowered rough prices at its current sight in Gaborone, by as much as 15 per cent in some cases.
It generally uses price cuts only as a last resort, and prefers to offer sight holders the right to refuse or sell back part of their allocation.
Insiders have expressed surprise, and in some cases disappointment at the move, with the holiday buying season now here, and polished prices finally showing signs of recovery.
According to the Bloomberg news website, De Beers “cut prices by 10 per cent to 15 per cent for most of the goods it sells”. It cited anonymous insiders.
De Beers has until now maintained its prices in spite of weak demand, and despite the fact that they are often significantly higher than other sellers.
De Beers no longer publishes Sight revenues, but it is reckoned to have sold no more than $130m at its November Sight (average per 2023 Sight was over $360m).
Last week the company confirmed it would be cutting the number of Sightholders – there are currently 69 – as of 2026 in a move designed to build partnerships that “create value”.
The future of De Beers remains uncertain, with parent company Anglo American planning to sell it off, and Anglo itself again the focus of intense speculation.
Rival miner BHP, which bid unsuccessfully for Anglo six months ago, is now allowed to make a renewed approach.
Luk Fook reported a 27 per cent slump in its half-year revenue and the closure of 175 of its 3,500-plus retail jewelry stores amid a surge in gold prices and weak consumer demand.
Earnings for the six months to 30 September were down to $700m. The Hong Kong-based jewelry chain blamed: “various challenges including macroeconomic uncertainties, further rising gold prices and cautious consumer sentiment, coupled with a high base effect”.
Luk Fook said the sharp rise in gold prices – an increase of 23 per cent during the six months – affected consumer sentiment, resulting in a 24 per cent drop in the sales of gold and platinum products. Overall same stores sales were down 34 per cent.
CEO Wong Wai Sheung said: “Although the spike in gold prices may affect sales performance, an increase in profit margin will help mitigate the impact of the decline in sales.
“Sales of the gold products are expected to resume to the normal levels after consumers adapt to the high gold prices.
Gross profits for the six months were down 14 per cent to $228m, net profit fell 56 per cent to $54m.
In March, Luk Fook reported a 28 per cent increase in revenue, driven by a post-Covid influx of tourists.
Angola has announced that Russian shares in two of its major diamond mines have been sold to an Omani-backed fund as a result of international sanctions, a government official said.
Russia’s diamond giant Alrosa was until now a joint owner of Angola’s Catcoa mine, the fourth-largest in the world, and Luele mine, in partnership with the southern African nation’s state-owned company Endiama.
The European Union imposed sanctions on Alrosa, also state-owned, and its CEO in January as part of a ban on diamond imports over the Ukraine war.
This led to “a block on the commercialization” of diamonds from Catcoa and Luele mines, Angola’s Minister of Mineral Resources and Petroleum Diamantino Azevedo said Thursday.
After “negotiations between the Angolan and Russian governments, as well as between Endiama and its partner,” Alrosa has now “officially ceased operating in Angola,” Azevedo said.
The company has been “replaced by Maden International Group, a subsidiary of the Sovereign Fund of the Sultanate of Oman,” the minister added.
He said the transition process was “already underway and should be conducted swiftly.”
The sale comes as the United States President Joe Biden was expected to travel to Angola on Dec. 2.
The visit, his first to Africa, underscores the strategic importance of the oil and mineral-rich country where a massive U.S.-led project is underway to export critical minerals.
De Beers says it will further reduce the number of sightholders, in a move designed to build partnerships that “create value”.
The emphasis will be on quality rather than quantity, CEO Al Cook told the Facets 2024 conference in Antwerp yesterday (26 November).
De Beers wrote to its 69 current sightholders last month advising them that a new supply agreement, as of January 2026, would be determined by an objective selection and allocation process. It declined to comment at the time.
“There will be some partnerships around the polished side, some partnerships around the rough side, some partnerships around dealing, some partnerships that go all the way into retail, but every partnership must create value, and that’s really important for all of our industry going forward,” Cook told the conference.
De Beers last reduced the number of sightholders in January 2021, when it introduced new contracts dividing buyers into three categories – dealers, manufacturers and integrated retailers.
The number of De Beers sightholders peaked at around 350 in the 1970s. It had halved by 2001 and was further reduced in subsequent changes to the client structure.
The diamond industry, once a symbol of timeless stability, finds itself in a state of flux as prices for natural diamonds hit multiyear lows, driven by a mix of evolving consumer preferences, geopolitical upheaval, and the meteoric rise of lab-grown diamonds (LGDs), a new study shows.
The reversal of fortunes that followed a surge during the covid-19 pandemic has left industry stakeholders grappling with how to adapt to ensure long-term sustainability, consultancy McKinsey & Company says in its latest report.
During the pandemic, diamond prices rose unexpectedly. Supply chain disruptions and the delay of weddings initially dampened sales, but many consumers stuck at home turned to diamonds as a form of self-care. This led to an unanticipated spike in demand and a sharp rise in prices.
The post-pandemic market has painted a very different picture. As traditional engagement and marriage cycles return and supply chains normalize, prices have tumbled amid changing market dynamics, McKinsey & Co. says.
Ten years ago, young customers were an important segment of the overall demand for precious stones. Today, they seek more affordable and ethical alternatives.
With prices up to 80% lower than mined diamonds, LGDs have swiftly carved out a substantial share of the market, challenging traditional producers, the report shows.
Shifting customer values
Increased awareness of environmental, social, and governance (ESG) issues has also driven consumers to demand greater transparency and sustainability in diamond sourcing. Many buyers now insist on proof that their diamonds were mined under fair conditions with minimal environmental impact. This shift is particularly pronounced among younger generations, who are reshaping the jewelry market with their purchasing power and values.
Generation Z is leading a wave of change, favouring ethical and customizable products over traditional offerings. Younger buyers are more likely to seek out jewelry that aligns with their values, including fair labor practices and sustainability.
Many are turning to digital platforms for their purchases, with online fine jewelry sales growing significantly. In 2021, the average online purchase of diamond jewellery in the US was $2,204, compared to $2,994 in physical stores, signalling a growing comfort with digital transactions for high-value items.
The trend of self-purchasing is another key shift. Rather than waiting for significant life events like engagements or weddings, many consumers are now buying fine jewelry for themselves.
Industry actors Beers Group and Signet Jewelers launched in October their “Worth the Wait” campaign, aimed at reigniting demand for mined diamonds from youngsters, particularly amid “zillennials”, the microgeneration born between 1993 and 1998.
Geopolitical and gov’t factors
Adding to the industry’s challenges are geopolitical tensions. Sanctions targeting Russian diamonds have disrupted the global supply chain, particularly for larger stones. Russia’s Alrosa, once the world’s top diamond producer by output, has been heavily sanctioned by the US and the European Union, creating regional dislocations.
McKinsey & Company warns that, by March 2025, these restrictions will tighten further, targeting stones of 0.5 carats and above, exacerbating supply chain issues.
The upheaval comes at a time when natural-diamond production is already constrained. Growth in supply is expected to remain sluggish, with an annual increase of just 1–2% through 2027, far below historical trends. Major mining companies are grappling with depleting resources, forcing them to shift from open-pit mining to more expensive underground operations. Companies like De Beers have invested billions to extend the life of their mines, but these efforts are costly and time-consuming.
Government intervention is also reshaping the industry. In diamond-rich regions, including Botswana, public authorities are taking larger stakes in mining operations, emphasizing the need for transparent and sustainable practices.
Despite the challenges, there are opportunities for companies willing to adapt, the consultancy says. Producers can diversify their offerings by incorporating LGDs or recycled diamonds into their portfolios. They can also emphasize the unique, intrinsic value of natural diamonds, appealing to consumers who value rarity and tradition. Investments in sustainability and digital commerce are likely to pay dividends, as consumers increasingly demand ethical and seamless shopping experiences.
The consultants conclude that by embracing innovation and aligning with shifting consumer values, the industry may find a way to shine brightly once more.
Lucapa Diamond has announced plans to restart production at its mothballed Merlin diamond mine in Australia’s Northern Territory.
The phased approach will begin with an 18-month initial phase, requiring A$15 million ($10m) to excavate and dredge five existing pits. This work is expected to recover around 67,000 carats and generate an estimated A$42 ($27m) million in revenue.
The second phase, spanning 27 months, will focus on vertical pit mining at the Gawain pit, targeting the recovery of 247,000 carats and generating A$246 million ($160m) in revenue. The overall project is expected to yield operating cash flow of $110 million, with a pre-tax net present value of A$40 million ($26m)and an internal rate of return of 75%.
Lucapa anticipates recovering gem and near-gem quality diamonds, which historically accounted for 75% of the mine’s production.
Questions remain about how Lucapa will fund its plans, as the company began the quarter with just US$1.3 million in cash. To address this, Lucapa has entered into a A$1 million short-term loan and is also exploring other funding options such offtake agreements, project-level debt, equity, and government facilities.
Smaller, more achievable target Lucapa, which also has interests in the Lulo diamond operations in Angola and the Mothae mine in Lesotho, acquired Merlin in 2021 for A$8.5 million.
The restart plan follows a 2022 scoping study that proposed a larger $96 million restart, which was halted due to rising capital costs and declining diamond prices.
The new plan includes constructing a 355,000tpa process plant using existing equipment at Merlin, with a proposed five-year mine life aimed at expanding operations into the 2030s.
Lucapa aims to grow the diamond resource beyond the current estimate of 4.4 million carats while also exploring the region for base metals, given its proximity to the McArthur River lead-zinc-silver mine.
Key players have taken “a very important step in the right direction” to raising $100m for the long-term promotion of natural diamonds, according to Yoram Dvash, president of the World Federation of Diamond Bourses (WFDB).
He also said he was cautiously optimistic for the holiday season as prices had started to stabilize globally, inventories were reducing and De Beers and the World Diamond Council (WDC) had embarked on multimillion-dollar advertising campaigns.
Dvash (pictured) said trade bodies had reacted very positively o his call for a $100m marketing campaign after what he described as a “brainstorming session” at the Dubai Diamond Conference earlier this month.
The Antwerp World Diamond Council (AWDC) and India’s Gem & Jewellery Export Promotion Council (GJEPC), had agreed to start looking into funding campaigns by the Natural Diamond Council, he said, in collaboration with the WFDB, IDMA (International Diamond Manufacturers Association) and CIBJO (World Jewellery Confederation). More trade bodies are expected to follow suit.
Dvash said he’d called for the industry to unite behind a major and sustained marketing campaign over the next five years to create demand for natural diamonds some weeks ago, and had been pleased by their response.
“It seems that we have found the golden formula that would enable the industry to raise $100m for generic advertising of natural diamonds,” he said.
Earlier this month he said there hadn’t been a major generic marketing campaign for natural diamonds for almost 20 years, when De Beers halted its “A Diamond is Forever” promotion.
“An entire generation of consumers has come of age without having been exposed to promotional campaigns with positive messages about natural diamonds,” he said in a letter to all the WFDB’s 29 member bourses.
