News – Page 79 – The Diamond Certification Laboratory of Australia (DCLA)

Zimbabwe’s ZCDC Sets Sight On Doubling 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

Graff Unit Signs Polishing Deal with Lucapa

The 8.88-carat pear-shaped polished diamond from Mothae.

Graff-owned diamond manufacturer Safdico will cut and polish a portion of rough from the Lulo mine through a partnership with Lucapa Diamond Company.

Safdico will have the rights to buy up to 60% of Lulo’s annual rough production under the terms of Angola’s new reform program, which went into effect last year. The new guidelines open sales to a wider range of buyers of the miner’s choosing, rather than forcing producers to sell to a list of clients approved by state-owned diamond company Sodiam.

All diamonds Safdico purchases from Lucapa will be placed into the joint partnership, the miner said Wednesday. Once polished, procurement and manufacturing costs will be deducted, with any profit from the sale of the polished diamond to be split equally between Lucapa and Safdico.

Safdico has already purchased 4,900 carats of rough from Lucapa through the partnership. Profits from the sale of the first batch of polished will be realized in the first quarter, Lucapa noted.

Lucapa, which operates the mine in Angola, first announced its intention to polish its own diamonds in February 2019 in an effort to maximize shareholder value by cutting out third-party manufacturers. Earlier this month, the company also debuted its first polished stones from the Mothae mine in Lesotho. Those included six D-color diamonds from a 36-carat rough, the largest of which was a pear-shaped, 8.88-carat, flawless stone.

Lucapa also plans to expand its total group production to more than 60,000 carats in 2020, it said.

“This production increase, coupled with the new revenue streams generated from the cutting and polishing agreement with Safdico, will enable [the company] to generate higher returns for its partners,” Lucapa explained.

Source: Diamonds.net

Swarovski Debuts New Lab-Grown Diamond Colors

Crystal brand Swarovski introduced 16 new synthetic-diamond colors at Paris Haute Couture Fashion Week.

The new hues fall into four creative categories in which Swarovski claims to play a role, it said last week. Each of the four areas — fashion, art, music and architecture — includes four colors of cushion-cut lab-grown diamonds.

Every category in the collection is led by a “hero” color. These include Androgyny Flamingo for fashion, Cubist Sky for art, Heavy Metal Cherry for music, and Gothic Cognac for architecture. Some of the other colors in the collection are Punk Lipstick, Surrealist Butter, Draped Fire and Electro Arctic.

The stones showcased in Paris range from 1.25 to 2.50 carats, while the 16 colors will be available at stores in 0.25- to 1.50-carat sizes.

“I’d like to think that these stones have endless potential, and are able to bring any idea to life,” said Markus Langes-Swarovski, a member of the Austrian jeweler’s executive board. “The colors, cuts and sizes are created to inspire jewelry that has never been made or even dreamed of. It’s a toolbox of unlimited creativity.”

Swarovski first launched laboratory-grown diamonds in 2018.

Source: Diamonds.net

De Beers Plans Overhaul of Supply Policy

De Beers plans to abandon its practice of using sightholders’ purchase history as the main factor in determining how it allocates rough supply, sources have told Rapaport News.

The move, which would go into effect from 2021, would see the miner shift to more subjective criteria for deciding the value of goods each client receives.

The current system, known as “demonstrated demand,” requires sightholders to buy the rough that De Beers has allotted them or risk losing access to De Beers’ diamonds in future. The method has faced criticism for encouraging dealers and manufacturers to take on unprofitable inventory.

But with the current sightholder agreement expiring at the end of this year, De Beers has told clients demonstrated demand will not be the main driver of allocations in the new contract period, the sources said. Discussions about the matter continued at this week’s January sight in Botswana.

The proposals include studying data about clients’ business activities, as well as qualitative factors, to help determine whether companies should be on the client list, a sightholder explained on condition of anonymity. De Beers is also considering reducing the number of sightholders, according to a Bloomberg report last week that Rapaport News could not corroborate.

“We will be communicating directly with customers in the coming months about the new sightholder contract period, which will focus on maximizing the considerable opportunities ahead in the diamond sector,” a De Beers spokesperson said. The company would not elaborate on the details.

The midstream’s accumulation of excess inventory contributed to a severe slowdown in the diamond market in 2019, with De Beers’ full-year sales falling 25% to $4.04 billion. Last July, Dutch bank ABN Amro wrote to its clients urging them to buy rough only when it’s profitable, and attacked the practice of making purchases purely to maintain supply allocations.

Sightholders are expecting this week’s De Beers sale — the first of the year — to be relatively large as the trade replenishes its stocks following a solid holiday season. De Beers raised prices in certain categories, sources said.

Soucre: Diamonds.net

Petra Diamonds H1 Production Up, but Revenue Down

Petra Diamonds Limited has announced that while its production for the six months ended December 2019 was up 3 percent to 2,070,240 carats (H1 FY 2019: 2,019,147 carats), revenue for the same period was down 6 percent. Revenue fell to $193.9 million from 1,743,807 carats (H1 FY 2019: $207.1 million from 1,736,357 carats).

The decline in revenue comes from lower diamond prices and the adverse product mix at Finsch and Williamson. This was, however, partially offset by the sale of the 20.08-carat blue diamond from Cullinan for $14.9 million.

The company is currently on track to meet or exceed its FY 2020 production guidance of ca. 3.8 Mcts.

In addition, Petra said it saw growing stability in pricing as the calendar year closed and that demand has continued to improve as the midstream looks to replenish inventory with early indications that rough pricing has improved modestly in the third quarter of 2020. .

Petra reported that its net debt as of December 31, 2019 stood at $596.4 million

(September 30, 2019: $592.8 million). It also reported a diamond inventory of 992,425 carats valued at $85.2 million compared to $92.4 million for September 30, 2019.

Source: IDEX

BlueRock Diamonds Reports Profitability

BlueRock Diamonds has announced that it operated profitably for the first time in the second half of 2019. The miner started operations in 2012.

The AIM-listed diamond producer, which owns and operates the Kareevlei Diamond

Mine in the Kimberley region of South Africa said its revenue was up 190 percent to Â£4.1 million ($5.4 million) for full year 2019.

The miner sold 12,675 for the year, an increase of 118 percent over the 5,805 carats in 2018. On a quarterly basis, Q4 2019 saw an increase of 172 percent to 4,170 carats compared to 1,533 carats in Q4 2018.

BlueRock also saw an increase in its average price per carat during Q4 and FY2019. For 2019, the per-carat price increased 24 percent to $415 (2018: $334) and for the quarter it rose 30 percent to $410 (2018: $316).

“I am very pleased with the continued success at Kareevlei,” said Mike Houston, BlueRock executive chairman. “Having achieved the aggressive guidance for 2019 and operated profitably for the first time in the second half of 2019. We are proud of this key milestone, which is a testament to the implementation of the revised production strategy brought in by the company’s new management team in Q2 2019.”

BlueRock said it expects to report positive EBITDA and positive comprehensive income for

the second half of 2019 (excluding non-cash adjustments for IFRS 9 charges and movement in foreign exchange).

The company said the first quarter of 2020 has started “satisfactorily” with expectations that, despite the impact of seasonal rains, it will meet its targeted production volumes for the quarter, which are significantly ahead of those achieved in Q1 2019.

Source: IDEX

New Production Strategy Pays Off for Blue Rock

BlueRock Diamonds reported the first annual profit in its history, as sales grew amid increased production and a higher average price, the miner said Tuesday.

The improvement was the result of a new initiative the miner implemented at its Kareevlei deposit in South Africa to stabilize production and offset the impact of the rainy season, during which operations are difficult.

Revenue for the year nearly tripled to GBP 4.1 million ($5.4 million) from the sale of 12,675 carats, compared with 5,805 carats in 2018. The average price rose 24% to $415 per carat, as BlueRock mined from higher-value portions of the deposit, it noted. Total output was 14,033 carats, versus 6,247 carats the previous year, as the majority of production stemmed from the company’s higher-grade KV1 pipe. That figure fell within BlueRock’s guidance of between 13,000 and 15,000 carats.

“I am very pleased with the continued success at Kareevlei, having achieved the aggressive guidance for 2019, and operational profitability for the first time,” said BlueRock executive chairman Mike Houston. “We are proud of this key milestone, which is a testament to the revised production strategy…which focuses on stabilizing production ahead of maximizing the exploitation of the resource.”

Based on the results, the company intends to implement further changes in order to increase production and lower costs, Houston added. It also plans to raise its guidance for the 2020 fiscal year following finalization of these initiatives.

BlueRock began operations in October 2012, and listed with the London Stock Exchange in October 2013.

Source: Diamonds.net

HRD Announces new CEO

After a long period of uncertainty, HRD Antwerp is looking to the future with a new and ambitious CEO. Ellen Joncheere, formerly the General Manager at Fremach, will be the new CEO at HRD Antwerp as of January 20th. The current interim CEO, Michel Janssens, will be retiring next summer.

Ellen has worked in a wide range of other sectors, including the automotive industry and environmental services, where she has transformed companies and strengthened their market positions in the face of rapidly changing market situations. She plans to help HRD Antwerp overcome the obstacles currently in its path, as well as prepare the entire organization for the future.

Over the past few years, HRD Antwerp has focused its attention on its core services of certifying polished diamonds, providing professional training and developing technological devices to detect laboratory grown diamonds. This has involved reorganizing its global structure and hierarchy.

HRD Antwerp has diamond grading labs in Antwerp, Istanbul and Mumbai. The company also has representative offices and drop off locations in Dubai, Hong Kong, London, Madrid, Shanghai, Surat and Tel Aviv.

Source: HRD

GIA Suspends Diamond Sealing Services Following Tampering

GIA (Gemological Institute of America) has announced that it is suspending its diamond sealing services. The suspension is effective immediately and comes following the discovery that “a small number” of GIA sealing packets that had been compromised by third parties after the sealing packets left GIA.

The Institute said that in these cases, the original diamonds had been replaced with HPHT (high-pressure, high-temperature) treated natural diamonds.

The replacement diamonds superficially matched the GIA report information for the original diamonds, including information on the sealing packet data label.

GIA said that anyone who has concerns about a GIA-sealed diamond can submit the unopened packet to any GIA laboratory for verification services. If GIA concludes the diamond in the sealing packet is the diamond described in the original report, the Institute will issue a verification letter confirming the diamond matches the original report. If this is not the case, the Institute will issue a new report with the correct results.

The Institute will provide this verification service free-of-charge for diamonds received in a sealed packet. All sealed diamonds submitted will be returned unsealed.

Source: IDEX