Angola’s Rough-Diamond Revenue Rises in 2019

Angola Rough Catoca Mine

Revenue from Angola’s national diamond-trading company, Sodiam, rose 6% in 2019 as the company sold a higher volume of rough goods.

Proceeds for the year came to $1.3 billion from the sale of 9 million carats of rough diamonds, compared with 8.4 million carats in 2018, the government said in a Facebook post last week.  That offset a 10% drop in the average price to $137 per carat for the year. 

The increase came despite weakness in the rough-diamond market in 2019, with many miners, including De Beers and Alrosa, reporting a decrease in sales.

Angola implemented a new, more competitive diamond-trading policy that allows miners to offer 60% of their production to clients of their choice rather than selling through the state trading company.

In the fourth quarter, Sodiam sold 3 million carats of rough for $409 million, at an average price of $136 per carat.

Source: Diamonds.net

India’s rough diamond imports fall sharply

India's rough diamonds

Import of rough diamonds fell 15.54% in the first 10 months of this financial year, according to the Gem & Jewellery Export Promotion Council (GJEPC).

Industry executives anticipate a further fall of 10-15% in February and March, as manufacturers are not keen to build up inventory in the wake of coronavirus outbreak which has affected demand in the major markets of Hong Kong, mainland China and the Far East.

Meanwhile, Russia’s diamond miner Alrosa has granted flexibility  

to India’s authorised bulk purchasers of rough diamonds to buy 55% of the contracted volume so that their inventory does not pile up. “The US-China trade war has impacted exports, which in turn has brought down imports of rough diamonds.

Slow demand in the world market has resulted in piling up inventories in FY20,” Colin Shah, vice-chairman, GJEPC, told ET. “Manufacturers wanted to clear their inventories first, before fres ..

fresh stocking. During the Christmas and New Year, there was good demand from the US and Europe and we were able to offload quite a substantial portion of our inventories.”

International agency Rapaport said in its recent report that the recent influx of rough diamonds in the market, coupled with the weakened outlook for China, had raised concerns that the trade would return to an oversupply of rough diamonds.

De Beers reported a 9% year-on-year increase in sales to $545

million in January, owing to firmer prices on select boxes of commercial-quality diamonds.

It said that mining companies were holding large quantities of rough diamonds which they could not sell in 2019. Production of rough diamonds is projected to decrease about 6% this year, although mining companies have enough inventory to offset the decline.

Insuring Your Certified Diamonds Is A No-brainer

CDI Diamond Jewellery Insurance

Your diamonds are possibly the most valuable item you own. Valuable not just in monetary terms, but because of their sentimental value. It might be your engagement ring, a wedding ring, a pendant gifted by a grandparent or even your favourite set of earrings. These items come with a strong emotional attachment and it can be devastating when they are lost, stolen or damaged.

So, you’d be amazed at the statistics – 40% of diamond owners don’t insure their pieces. They then get incredibly angry at themselves when it’s too late and they’ve lost their special piece for whatever reason. Within this group, one-third consider their engagement ring to be one of the most expensive items they own among other investments like their home and vehicle. Yet they insure their house and vehicle every year, but neglect to consider their diamonds.

The alarming part is how often people find themselves in situations where their diamonds are at risk. The statistics are an eye-opener and should serve as a reminder if you haven’t yet insured your diamonds properly.

In 2015, Australia had the fifth highest rate of burglaries in the world. In 2017, there were 225,900 recorded burglaries in Australia – one every three minutes. Add to this a 2010 study that showed jewellery was the third most common item stolen in a home burglary, behind laptops and cash – and you would have to agree it’s not worth the risk. Theft is more common than you think and no one is exempt from such bad luck.

It’s also important to remember that your diamonds are vulnerable and are susceptible to damage. There are three different classifications a gemologist uses when assessing stones to determine their durability:

  1. Hardness
  2. Toughness
  3. Stability

Hardness is assessed by how easily the diamond can scratch. Toughness is judged by how well the diamond can stand up to breakage or chipping. Stability is measured according to how well the diamond can stand up to thermal changes. It’s worthwhile finding out how vulnerable your diamonds are, or at least keep in mind they’re not invincible.

And of course, there’s the risk that you could lose your special piece. Everyone assumes it will not happen to them, but that is optimistic and you can never be 100% sure of this – at home, or while you’re on holidays.

Some insurance gets murky when you’re out of the country and holidaying overseas. You believe you’re protected until you fly to Bali or Hawaii and suddenly you’ve been robbed or left something in the hotel room and your special piece isn’t covered.

With Certified Diamond Insurance, you can trust you are covered the moment you walk out of the jewellery shop. Just as importantly, you’re free to have your piece repaired or replaced at your chosen jeweller – and we guarantee your replacement will be the same if not better than the original piece. You’ll pay no excess if you ever need to claim, and you’re covered worldwide and at home. Which means whenever and wherever you need to travel, your diamonds are safe.

Don’t make the mistake of assuming it will never happen to you. Cover yourself, protect your diamonds properly, and relieve the stress should anything ever happen.

Source: CDI

De Beers Scores Partial CVD Patent Victory

Synthetic colored diamonds at Element Six in Oxford UK De Beers

 A court has awarded a limited victory to De Beers’ synthetic-diamond production unit in a patent dispute with Singapore-based grower IIa Technologies.

IIa infringed an Element Six patent related to diamond material that’s usable for lab-grown diamond jewelry and industrial applications, according to a High Court of Singapore judgment Friday. However, another Element Six patent for post-growth color treatment is invalid, judge Valerie Thean also ruled.

“We will continue to be vigilant for any other potential infringement of our [intellectual-property] rights around the globe,” Element Six CEO Walter Hühn said in a statement Friday. “We will defend our rights vigorously — just as any company would — because protecting our ability to get a full return on our investment in [research and development] is vital to our future.”

UK-based Element Six produces synthetic diamonds for De Beers’ lab-grown jewelry brand, Lightbox, and supplies diamond material for industrial and technological uses. The patent it successfully defended, SG 872, was relevant to optical applications such as infrared spectroscopy and high-power laser optics, as well as to the creation of stones for jewelry, De Beers explained.

IIa, which grows CVD goods for distributor and sister company Pure Grown Diamonds (PGD), must stop making, using, importing or maintaining possession of products that infringe patent SG 872, Thean ordered. She also called for the cancellation of Element Six’s patent SG 508, which relates to the annealing of chemical vapor deposition (CVD) diamonds.

“IIa Technologies has developed its proprietary process in the last 15 years, and is proud of the work we have done to bring lab-grown diamonds to the world,” Vishal Mehta, IIa’s CEO, said in a separate statement. “The current judgment will be considered in its entirety, and then the company will take necessary steps to protect its interests.”

The lawsuit, which Element Six filed in 2016, comes amid heightened patent-related legal activity in the synthetic-diamond sector. Last month, WD Lab Grown Diamonds sued six companies — including IIa and PGD — accusing them of infringing its patents for synthesis and treatment.

Source: Diamonds.net

Russian banks may grant loans to diamond buyers in India

Russia’s diamond titan unearths massive 190-carat gem

Indian diamond traders purchasing rough precious stones from major Russian miner Alrosa could be eligible for loans from Russian banks, as domestic lenders have reduced financing for the gem and jewelry sectors.

Russian banks have already started granting money to Alrosa’s foreign clients, according to the Economic Times. The measure could boost India’s diamond industry, which has been lacking a source of financing since notorious jeweler Nirav Modi was accused of being involved in a $2.5+ billion fraud case in India. The billionaire was arrested in London in 2019 after managing to enjoy a lavish lifestyle in London for more than a year while on Interpol’s Red Notice list.

“This will definitely help those who buy rough diamonds from Antwerp,” the Gem and Jewelry Export Promotion Council’s Vice Chairman Colin Shah said, as quoted by the outlet. “If the Russian banks come forward with business-friendly lending norms, then it is good for the Indian diamond trade.”

Indian banks doing business in the epicenter of the diamond industry – Antwerp in Belgium, source of the bulk of rough diamonds that come to India – have winded down diamond financing in the city. Meanwhile, the lenders operating inside the country have also reportedly limited credit opportunities for the sector.

India has emerged as the largest diamond-cutting center in the world, with between 70 and 90 percent of all diamonds sent there to be cut. Russia’s Alrosa is the leading supplier of diamonds in the world, according to the company, and it has long been cooperating with the South Asian nation. The miner signed 14 long-term contracts with diamond manufacturing companies in India for 2018-2020, and in 2017 it supplied the country with precious stones worth almost $700 million.

Source: rt.com

Karowe Yields Massive 549ct. Rough

Lucara 549 carat rough diamond

Lucara Diamond Corp. has unearthed a 549-carat white diamond at its Karowe mine, the fourth-largest stone in the history of the Botswana deposit.

The unbroken stone, which is of “exceptional purity,” is the first large diamond Lucara has recovered using its Mega Diamond Recovery (MDR) equipment, the miner said Wednesday. The unit, which the miner commissioned in 2017, is specifically designed to recover large stones early in the extraction process to reduce the risk of breakage.

The rough stone is worth $15 million to $20 million, according to an estimate by Berenberg investment bank. However, it could potentially sell for more, the bank added.

The diamond came from the high-value EM/PK(S) portion of discovery of Karowe’s lucrative south lobe, Lucara noted. The same area yielded a 176-carat, gem-quality stone earlier this year, and was also the source of the 1,758-carat Sewelô, the 1,109-carat Lesedi La Rona and the 813-carat Constellation.

“Lucara is extremely pleased to be starting off 2020 with the recovery of two large, high-quality diamonds that build on the positive momentum generated following the completion of a strong fourth-quarter sale in December,” Lucara CEO Eira Thomas said.

Lucara has retrieved six diamonds over 100 carats since the beginning of the year. It will announce its plans for the sale of the 549-carat and 176-carat diamonds shortly.

The miner’s share price rose 4% in early trading Thursday following the announcement.

Source: Diamonds.net

Gem Diamonds Recovers 183-Carat Diamond

Gem diamonds 183 carat rough diamond

Gem Diamonds Limited has announced the discovery of an exceptional 183-carat white Type IIa diamond from the Letseng mine in Lesotho on February 3.

The miner also announced that it also recovered two different high quality diamonds, one of 89 carats and the other of 70 carats, from the mine. 

The Letseng mine is the highest dollar per carat kimberlite diamond mine in the world.

Zimbabwe’s ZCDC Sets Sight On Doubling Diamond Production

Zimbabwe Diamond Production

The Zimbabwe Consolidated Diamond Mining Company (ZCDC) failed to meet its 2019 target of 3 million carats, but officials are buoyant fortunes will turn around as the firm has consolidated its investments in exploration, mining and processing to improve output this year.

Speaking durng a media tour of Chiadzwa diamond fields on Friday last week, Acting ZCDC Chief Executive Officer Roberto DePreto said they are aiming to double the 1.6 million carats produced last year through joint venture agreements, increased exploration as well as mitigating viability challenges, linked to power shortages and access to foreign currency.

“Since the Diamond Policy was issued we are now looking for joint venture partners, those joint venture partners get allocated a particular concession and we then subdivide the (overall) 626 special grant into specific special grants for those venture companies.

“Last year we produced 1.6 million carats and this year we are targeting to double that through our investments in new plant machinery and our exploration capabilities,” said DePreto.

Consuming an average of 5 megawatts and at 25 000 of diesel daily, ZCDC has also invested in new plant machinery from Belarus which needs foreign currency for repair and maintenance, with at least seventy percent of consumables and spares imported.

Officials said such overheads have hampered production targets, costing in total a minimum of 8 million tons of unprocessed diamond ore from the down time caused by the listed operation constrains.

Mine manager, Innocent Guvakuva said focus will be placed on optimizing processing capacity, already on a positive trajectory following acquisition of new plant machinery, as well as improving power supply to reduce production downtime.

“Last year there were issues to do with power, this year there has been a bit of improvement but last year it was worse, issues to do with fuel and general forex availability because 70 percent of all consumables and spares we import.

“So, if your foreign currency access scenario is not stable you are bound to suffer, but this year things have started on a better note… one of the biggest challenges in Zimbabwe is that we are a cash economy.

“We lost a lot last year in terms of production down time we lost, probably in terms of total material mined we are looking at about 8 million tones that we could have moved last year, which is very big,” said Guvakuva.

He added, “We have installed a 450 ton per hour plant it’s got phases now we are installing phase three where carat production is expected to go up, our focus now in terms of mining we are stable but it’s the liberation and optimization of the plant that we will work on.”

Guvakuva said focus will also be placed on greenfield and ground field, together with exploration contractors under a ‘hybrid exploration model’ in the seven approved special grants in regions considered diamondiferous.

“We are increasing our exploration through a hybrid model in the sense that we have our own exploration drill rigs, commissioned them in 2018, they are called diamond drill rigs that can drill up to 250 metres, we have what we call a Reverse Circulation Rigs (RCO).

“We have also engaged contractors which makes it the hybrid model, they have done work right now the contract has ended, but we are doing a lot of exploration we have a lot of ground field and greenfield projects all over the place.

“ZCDC we have seven approved special grants, in this whole area which is about 26 to 30 kilometers its assumed to be diamondiferous, but the economics of it is what we do through exploration. To say we will be here for two or three years I will be lying (is an under estimation) but we will be here for a very long time,” said Guvakuva.

Source: allafrica

De Grisogono Files for Bankruptcy Amid Probe

A De Grisogono store on New Bond Street in London

De Grisogono has filed for bankruptcy shortly after being caught up in an alleged money-laundering scandal involving the daughter of Angola’s former president and her husband.

Last week, media reports stated Isabel dos Santos’s husband, Sindika Dokolo, bought a stake in the Swiss luxury jeweler together with Angolan national diamond-trading company Sodiam through a Malta-based shell company. Over $150 million in Angolan money was invested in De Grisogono, Bloomberg reported.

The jeweler has now filed for creditor protection following failed talks to find a buyer over the last few months. If protection is granted, De Grisogono will implement a “mass redundancy procedure” in which all 65 employees at the Swiss office will be dismissed, the jeweler said Wednesday.

“Without financial support from the current shareholders, and without a new investor, unfortunately the company cannot continue as a going concern,” De Grisogono continued.

On January 22, Angola’s prosecutor general launched an investigation into dos Santos, while an Angolan court froze local assets belonging to her and her husband. Prosecutors alleged they were complicit in illegal transactions in Angola that cost the government $1.14 billion, the Bloomberg report explained.

Dos Santos said the news stories about her were part of a political witch hunt to discredit her, and she insisted her fortune was self-made.

Rumors concerning the jeweler’s connection to dos Santos had been circulating on social media since October 2017. The Instagram account @degrisogononews was specifically set up to bring attention to the questionable diamond-trading practices attributed to dos Santos and her husband.

Following the so-called Luanda Leaks reported by The New York Times and other international publications, gemstone dealer and explorer Yianni Melas revealed he was the Instagram account owner on January 20.

Melas went on a 31-day hunger strike in November and December 2017 to protest the sale of The Art of De Grisogono, Creation I at Christie’s Geneva. The necklace featured a 163.41-carat, D-flawless center diamond sourced in Angola.

On the news of the Swiss house going into bankruptcy, Melas told Rapaport News, “[During my hunger strike,] there is a photograph of me with my hands up in the air at the Acropolis because I knew that one day this would happen.”

“I feel mixed emotion, sadness about how an amazing brand associated with beautiful jewels would lose its name, but at the same time the overwhelming feeling is that I am happy because it belonged to somebody who didn’t deserve it. And also it’s a lesson to anyone who is involved with brands which are not good that initially it appears great and beautiful but in the end justice prevails,” Melas added.

Source: Diamonds.net