Petra Diamonds Ltd. sold a 39.3-carat blue gem for more than $40 million, making it one of the most expensive rough diamonds ever.
The small miner sold the exceptional Type IIb blue diamond to a joint venture between top producer De Beers and Diacore, a trading company owned by the billionaire Steinmetz family, it said Monday. The stone fetched just over $1 million per carat and is the most expensive gem Petra has ever sold.
Petra found the diamond at the Cullinan mine in South Africa in April. The mine, once owned by De Beers, is famous for both large and blue stones and was where world’s biggest diamond was found in 1905. Blue stones are among the most rare and valuable.
The sale is good news for Petra, which was forced to restructure its debt last year, when the Covid-19 crisis brought the industry to a standstill at a time when the company was already facing a mountain of debt and falling diamond prices. The shares, which were once worth more than $1.5 billion, closed up 1.1% on Monday.
The 100+ carat diamond has sold for $12.3 million using cryptocurrency. Courtesy Sotheby’s
The Key 10138, the rare pear-shaped diamond, that was auctioned at Sotheby’s on Friday, has been sold for $12.3 million using cryptocurrency. It was sold to an anonymous private collector.
At the time the auction was announced, the piece became the first time a diamond of such size had been offered for public purchase with cryptocurrency. Now it has now become the highest price achieved for any jewelry or gemstone bought with cryptocurrency.
“We are thrilled to witness a historical moment, when one of the Earth’s oldest and rarest treasures was purchased using humanity’s newest universal currency,” said Wenhao Yu, Deputy Chairman of Sotheby’s Jewellery in Asia, in a statement. “By introducing this innovative payment option to our luxury sale, we open up new possibilities and expand our reach into a whole new clientele, many of whom are from the digitally savvy generation. The result today not only attests to the resilient demand for top quality diamonds, but also reinforces Sotheby’s position as a pioneer in the luxury field.”
The 101.38 carat diamond from which it takes its name is the second largest pear-shaped diamond to appear on the public market and came from the world-leading diamond company Diacore, the auction house says.
The Key 10138 has achieved the highest gradings in both colour (D colour – the highest grade for a white diamond) and clarity (completely flawless, both internally and externally). It also belongs to the rare subgroup comprising less than 2% of all gem diamonds, known as Type IIa. Diamonds in this group are the most chemically pure type of diamond and often have exceptional optical transparency.
An exceptionally large and white 1,174 carat diamond stone has been unearthed in Botswana, trumping another huge precious stone that was found in the African country in June.
The latest find, which fills the palm of a large hand, was also discovered in June, on the 12th. It was found by the Canadian Diamond firm Lucara and presented to the country’s cabinet in Gaborone on Wednesday.
“This is history in the making, for us and Botswana as well,” said the company’s managing director, Naseem Lahri, adding that the diamond was in third position among the world’s largest gemstones.
On 1 June the Botswanan diamond firm Debswana said it had recovered what was then the “third largest” stone in the world, weighing in at 1,098 carats.
Botswana leads the world for the largest precious stones, accounting for six in the top 10 list. The country is Africa’s leading diamond producer.
The biggest diamond ever discovered anywhere was the 3,106 carat Cullinan, found in South Africa in 1905. Parts of that diamond adorn the British crown jewels.
Mokgweetsi Masisi, the president of Botswana, on Wednesday welcomed the “riveting moment” and the frequency of diamond discoveries in his country.
A recent global meeting of the Kimberley Process (KP) ended in controversy as Chinese delegates allegedly clashed with a representative of nonprofit organizations on the issue of conflict diamonds.
Attendees from China interrupted a closing statement by Shamiso Mtisi, the coordinator of the Civil Society Coalition, after he criticized the country’s approach to the matter, Mtisi claimed this week. Part of the Chinese delegation left the Zoom meeting in protest, according to another participant.
Speaking at last month’s intersessional, Mtisi singled out China, India and Angola for failing to make progress on the KP’s definition of conflict stones, a central point of debate within the KP.
Proposals to update the definition have been under discussion for many years. The current language limits the term to rough goods used by a rebel group to finance conflict but excludes violence by ruling authorities.
The topic was on the agenda at the intersessional meeting from June 21 to 25, which took place online for the first time because of the Covid-19 pandemic.
However, China, India, Angola and other countries argued that the KP was not a forum for discussing human rights because the organization was for “trade issues,” Mtisi reported. Some governments also pointed out that the KP lacked a mandate to make the change, he said. Under KP rules, a revamp of the wording can only happen when all participating governments give their approval.
Potential motives
The reasons for the trio’s reluctance are murky, leading to speculation about possible factors.
China has invested in diamond mining in Zimbabwe, a producing nation with a contentious history of violence at its deposits, Mtisi explained to Rapaport News. He also alleged that India — the world’s largest rough importer — benefited from cheap diamonds originating in countries affected by human-rights violations. It is not clear why Angola, a mining nation, would oppose an updated definition, given its history of conflict, he said.
The question over the definition of conflict diamonds “is a sensitive issue that needs consensus at the level of all participants and observers,” a spokesperson for Angola’s Ministry of Mineral Resources, Petroleum and Gas said last week. “It is the role of [KP] participants and observers to discuss and reach consensus [on] when the definition of conflict diamonds should be changed.”
Mtisi also alleged that authorities in Angola’s Lunda Norte diamond-mining province were “violently” suppressing community protests against the “destruction of villages and livelihoods.” The Angolan government denied this.
The governments of China and India did not respond to requests for comment by press time. The Gem & Jewellery Export Promotion Council (GJEPC), India’s main trade body for the sector, said it had never opposed rewriting the key definition if it helped create a more sustainable industry free of human-rights violations.
Zoom protest
At one point of his virtual speech, Mtisi — deputy director of the Zimbabwe Environmental Law Association, which leads the Civil Society Coalition — named the three countries that, he claimed, had been dragging their feet for years.
“[The China delegates] unmuted their mic and they started shouting,” he alleged in an interview with Rapaport News. “I didn’t hear exactly what they were protesting about, but they were protesting about my speech and the mention of China as having blocked any discussions on [conflict-diamond] definitions.”
Russia, as chair, offered the protesting governments the opportunity to respond at the end of the speech, said Edward Asscher, president of the World Diamond Council (WDC), which represents the trade at the KP. The US, Canada, the European Union and the WDC all stated their views.
“We pointed out the importance of freedom of speech, and [the] KP meetings should not be an exception,” Asscher stated.
While there was progress at the intersessional, there was still no widespread agreement, Asscher said. He acknowledged that some governments wanted to delay the discussions to a later time.
“Even though consensus was not reached, the discussions allowed participants — governments, civil society and industry — to express their positions,” the president continued. “It is only through discussion and hearing everyone’s concerns that we will make progress towards a wider definition.”
This is not the first incident of this type. At the welcome ceremony of the 2017 intersessional meeting, Chinese delegates reportedly shouted in protest against the involvement of Taiwan, which it did not consider to be a state eligible to take part in such events.
“All delegations at the KP meetings have both a right to be heard and a right to respond to any representations made, which is absolutely fundamental,” a spokesperson for Russia’s KP operation said this week. “Yes, sometimes listening to each other and trying to reach consensus is not an easy task and requires commitment and engagement from all parties around the very large and diverse KP table, and yes, sometimes people do get emotional. But we are confident that this cannot serve as an excuse for disarray.”
A 21.86 carat natural pink diamond named “The Pink Palesa” will be sold by the Bonas Group in Antwerp in July.
Credit: Namakwa Diamonds
The pink gem was discovered on May 18 at the Kao mine in Lesotho one of the few sources of pink diamonds in the world following the closure of the iconic Argyle mine last year. Argyle provided about 90% of the world’s pink gems. Kao is operated and owned by Namakwa through its subsidiary, Storm Mountain Diamonds.
According to the report, Kao has yielded several pink diamonds in the last few years: The 25.97 carat Pink Dawn (2021), the 36.06-carat Pink Storm sold in 2014, the 3.06 carat Purple Princess (2017) and the 29.59 carat Rose of Kao (2018).
Lucara Diamond Corp. is pleased to announce the recovery of a 1,174.76 carat diamond from its 100% owned Karowe Diamond Mine located in Botswana.
The diamond, measuring 77x55x33mm, is described as a clivage gem of variable quality with significant domains of high-quality white gem material, and was recovered from direct milling of ore sourced from the EM/PK(S) unit of the South Lobe.
The 1,174 carat diamond represents the third +1,000 carat diamond recovered from the South Lobe of the AK6 kimberlite since 2015 including the 1,758 carat Sewelô and 1,109 carat Lesedi La Rona.
The 1,174.76 carat diamond was recovered in the Mega Diamond Recovery XRT circuit. On the same production day, several other diamonds of similar appearance (471 carat, 218 carat, 159 carat) were recovered at the main XRT circuit, indicating the 1,174 diamond was part of a larger diamond with an estimated weight of > 2000 carats.
The MDR is positioned after the primary crusher, ahead of the autogenous mill, and is the first opportunity for diamond recovery within the circuit.
The diamond firm Debswana has announced the discovery in Botswana of a 1,098-carat stone that it described as the third largest of its kind in the world.
The company’s acting managing director, Lynette Armstrong, presented the stone, which was found on 1 June, to the country’s president, Mokgweetsi Masisi, on Wednesday.
It is the third largest in the world, behind the 3,106-carat Cullinan found in South Africa in 1905 and the 1,109-carat Lesedi La Rona discovered in Botswana in 2015.
“This is the largest diamond to be recovered by Debswana in its history of over 50 years in operation,” Armstrong said.
“From our preliminary analysis it could be the world’s third largest gem-quality stone. We are yet to make a decision on whether to sell it through the De Beers channel or through the state owned Okavango Diamond Company.”
The “rare and extraordinary stone … means so much in the context of diamonds and Botswana,” she said. “It brings hope to a nation that is struggling.”
The minerals minister, Lefoko Moagi, said the discovery of the stone, which is yet to be named but measures 73 by 52 by 27mm, could not have come at a better time after the Covid-19 pandemic hit diamond sales in 2020.
Debswana is a joint venture between Anglo American’s De Beers and the Botswanan government, which receives as much as 80% of the income from sales through dividends, royalties and taxes.
Production at Debswana fell by 29% in 2020 to 16.6m carats and sales fell by 30% to $2.1bn as the pandemic affected production and demand.
Debswana plans to increase output by as much as 38% to pre-pandemic levels of 23m carats in 2021 as the global diamond market recovers with the easing of travel restrictions and reopening of jewellers.
The auction came as the Mountain Kingdom explores how to ensure diamond mines are at least 51 percent-owned by locals, which will include the entry of small-scale miners into the sector.
Lesotho’s diamonds are usually auctioned in Antwerp, Belgium. Buyers from as far as the Netherlands and Israel were joined by those from neighbouring South Africa and locals at the inaugural auction.
Launched by Deputy Prime Minister Mathibeli Mokhothu, the auction sold off diamonds collected from the public and those confiscated by the police in recent months. Of the 493 diamonds auctioned, 140 were voluntarily handed over by the public while 353 were confiscated by the police.
The government offered an amnesty from November 2020 to March 2021 to anyone in possession of undocumented diamonds, allowing them to hand the gems over without fear of prosecution. The auction was held from May 27 to 29.
Mining Minister Serialong Qoo said all revenue from the confiscated diamonds would be forfeited to the state and proceeds from gems voluntarily handed to the government would be paid into the holders’ bank accounts.
“I am very delighted that this day has finally come after it was initially delayed by the COVID-19 pandemic. This is a big move as parliament has now embraced the idea of letting Basotho mine with their picks and shovels legally,” said Minister Qoo.
Mining Ministry spokesperson Ms ‘Makananelo Motseko this week said a final report on the auction was being compiled and would be made public.
At the auction, Deputy PM Mr Mokhothu said, “We hope this local auctioning will spell the end for illegal diamond dealing as trade will be done securely and legally. This occasion gives me hope that soon, all of Lesotho’s diamonds will be sold in-country and benefit it economically.”
He also said Lesotho should move towards ensuring that at least 51 percent of shareholding in the diamond mines is held locally while investors would hold the remaining 49 percent.
The 54.03-carat Chrysler Diamond necklace was among the top sellers at the Christie’s Magnificent Jewels sale in New York, bringing in $5.1 million.
The pear-shaped, D-color, internally flawless stone was originally purchased by Harry Winston in 1958 from the estate of Thelma Chrysler Foy, the daughter of railroad and automotive executive Walter Chrysler. The necklace beat its high estimate of $4.5 million at the June 8 auction, which garnered $26.6 million in total, Christie’s said Tuesday.
Also headlining the sale was the Dancing Sun, a cushion modified brilliant-cut, 204.36-carat, fancy-intense-yellow, VVS2-clarity diamond, the largest originating in North America. The stone sold for $5 million, near the upper end of its valuation.
The Flawless Match, a ring featuring a pear-shaped, 2.52-carat, fancy-vivid-blue diamond and a pear-shaped, 2.43-carat, D-color, internally flawless, type IIa diamond, fetched $2.9 million, within its estimate. Meanwhile, a collection of 19 jewels by JAR, the largest selection of the designer’s pieces offered at auction, went for a total of $5.9 million. That set was led by a diamond bracelet called Branch Under Snow, which achieved $1.9 million, more than three times its high estimate.
The auction house sold 87% of items at the event. Before the live sale, it also held a Jewels Online auction that raked in $3.5 million, with 97% of lots finding buyers.
De Beers increased prices of goods above 2 carats at this week’s sight as shortages of rough coincided with strong polished demand.
Prices rose around 5%, and more in some categories, market insiders told Rapaport News on Monday. Near-gem items also saw significant increases, while prices for other stones under 2 carats were either stable or slightly up.
“They seem to have picked areas where they’ve seen room [for price growth], and they’ve just hiked the prices up,” a source in the rough sector said on condition of anonymity. “For the time being, the market is absorbing it.”
Rough trading has been strong in recent weeks because of reduced supply from the large miners and solid polished sales. The RapNet Diamond Index (RAPI™) for 1-carat diamonds has risen 2.5% since May 1.
Rough above 1 carat has been especially sought-after, with premiums on the secondary market rising while manufacturers look to fill inventory gaps. A backlog of grading submissions at the Gemological Institute of America (GIA) has exacerbated the situation.
The June sight value will be similar to last month’s $380 million as customers snap up the limited goods available at the sale, sources said. Proceeds were higher earlier in the year — peaking at $663 million in January — when manufacturers restocked after the holidays and De Beers had larger volumes available to sell.
“There’s a shortfall in goods,” an executive at an Indian sightholder said Monday. “They’re not able to serve everyone what they’re entitled to.”
Rough demand slumped during the 2020 coronavirus crisis as the global supply chain froze. De Beers chose to maintain prices until August, when it offered deep discounts to encourage sightholders to resume buying. It has since reversed those cuts, gradually bringing prices to above pre-pandemic levels in many categories.
The sight began on Monday and runs until Friday. De Beers was not available for comment at press time.
