ALROSA – Page 11

Botswana economy hit hard as diamond slump deepens

Botswana is bracing for deeper spending cuts and a widening budget deficit as a prolonged slump in diamond demand pressures its economy, even as the country signals interest in expanding its stake in diamond giant De Beers.

Vice President and Finance Minister Ndaba Gaolathe said the government is preparing to make “drastic” fiscal adjustments to stay afloat, including slashing expenditures and boosting tax revenues.

“The first thing we need to do, obviously, is to live within our means,” Gaolathe said in Washington. “That means cutting spending — doing away with what we believe is some of the fat.”

Diamonds make up a third of Botswana’s revenue and lead its exports, but a prolonged drop in global demand since mid-2023 has forced the government to raise its budget deficit forecast to 9% of GDP — the highest since the pandemic. The downturn has also led to a 3% contraction in the economy this year.

With foreign reserves under pressure, officials plan to cut costs by trimming the government vehicle fleet and curbing travel. They’re also moving to boost revenue through stricter tax enforcement and a new digital transaction levy set to launch in September.

Despite fiscal stress, Gaolathe said Botswana is reluctant to seek financing on international markets, preferring concessional loans. “Let’s borrow where it’s cheapest,” he said.

Bigger De Beers stake
The diamond downturn has also accelerated changes in the industry. Anglo American (LON: AAL), which owns 85% of De Beers, has been seeking a buyer for the iconic diamond company. Botswana, which holds the remaining 15% and is De Beers’ primary diamond source, says it wants a greater say in the sale.

“We are very confident that partners are coming forward,” Gaolathe told Bloomberg, noting interest from countries, funds and companies with “deep interest” in the industry. Botswana wants any new owner to be financially strong and committed to the diamond business long-term — and said it is open to increasing its stake to as much as 50%.

The government and De Beers recently signed a 10-year deal to fund global marketing aimed at reviving demand for natural diamonds, which have been losing ground to lab-grown alternatives. New US tariffs on Botswana’s diamonds have since added uncertainty to any near-term rebound.

“High tariffs on our diamonds will have a deleterious effect on us,” Gaolathe warned. The Bank of Botswana expects only a “muted recovery” this year.

Source: Mining.com

US Jewelry Sector Shrinks Again in Q1

The decline in the US jewelry sector continues, with yet another drop in the number of retail, wholesale and manufacturing businesses.

The total number fell by 3.4 per cent – just under 800 businesses – to 22,330 year-on-year, according to the latest update from the Jewelers Board of Trade (JBT), which provides commercial credit information. The figures take account of both closures and new business openings.

The figure for the previous quarter, Q4 2024, was -3.2 per cent, and for Q3 2024 it was -3.3 per cent, indicating a steady rate of decline.

The biggest fall in Q1 2025 was among jewelry manufacturers, down 4.6 per cent to 2,119. The number of retailers fell 3.5 per cent, down to 16,959 and the number of wholesalers fell 2.5 per cent to 3,252.

JBT reported the opening of 68 new retail jewelers in the US during Q1.

Source: IDEX

Signs of Stabilization: “Mild Decline” for Fancy Color Prices

Prices of fancy color diamonds slipped by “only 0.3 per cent” in the first quarter of this year, according to the Fancy Color Research Foundation (FCRF).

Concerns over the impact of US tariffs were counter-balanced, to some extent, by what it called “signs of market stabilization”.

In Q4 of 2024 the Fancy Color Diamond Index fell by 1.1 per cent, and in the full year 2024 prices suffered their biggest annual fall since FRCF launched the Index in 2014.

In its quarterly update the FCRF noted that despite anxieties about Trump’s proposed tariffs (currently on hold for 90 days) they may actually create a shortage of color diamonds in the US market, which could serve to drive prices up.

“While the headline number shows a mild quarterly decline, the underlying data tells a more optimistic story: certain categories have stabilized, and volatility across others has significantly slowed,” the FCRF said.

“Which may set the stage for a potential rebound in select categories throughout upcoming quarters.

The FCRF also said that GIA’s decision to halt overseas submissions to its US labs, following the tariff announcement, means fancy color stones are being graded in Hong King instead, which is slowing the supply chain.

Yellow fancy color diamonds (all sizes and intensity) suffered the biggest losses in Q1 2025, down by 0.7 per cent (following on from a 2.2 per cent drop the previous quarter). Blues were down 0.5 per cent and pinks just 0.1 per cent.

Roy Safit, CEO of the New York-based FCRF, said: “While global trade anxieties – particularly around renewed US tariff proposals – have undoubtedly created caution across luxury sectors, the fancy color diamond market remained impressively composed.

“In fact, given the sharp rhetoric around import duties and reshoring, many expected a more dramatic correction. Instead, the data shows a contained, strategic repositioning. It speaks to the market’s growing maturity and the defensive appeal of vivid color diamonds.”

Source: IDEX

JAR Collection set to Fetch $3m

A collection of 21 pieces by the celebrated jeweler JAR (Joel Arthur Rosenthal) is expected to sell for at least $3m at Christie’s Geneva.

It’s described as “one of the largest and most important private collections of works by the visionary designer”.

JAR is one of the most sought-after contemporary jewelers, known for his use of unconventional materials and techniques, and for drawing on flora and fauna as his inspiration.

His exclusive boutique, in Place Vendome, Paris, admits clients only by personal approval or recommendation and produces just 70 or 80 pieces a year.

The collection – A Bouquet of Gems: A Superb Collection Of Jewels By JAR – will be offered for sale at the Magnificent Jewels sale on 14 May.

They were acquired for a single private collector in the early 2000s and 2010s and none of them has previously appeared on the market or at auction.

Highlight of the sale is the 2009 sculptural diamond Apricot Blossom bracelet (pictured) with an estimate of $340,000 to $570,000.

A multi-gem chain necklace of round brown diamonds, emeralds, tourmalines, tsavorite spessartine garnets, peridots, purple, orange, pink sapphires and sapphires, topazes, fire opals, rubies, pink and purple spinels, amethysts, and aquamarines, has an estimate of $285,000 to $400,000.

And a 2006 ring, with a 6.36-carat cushion modified brilliant-cut diamond, and black diamonds, is offered with a $160,000 to $230,000 estimate.

Source: IDEX

India’s Polished Diamonds Export Down 17%

India’s polished exports fell by almost 17 per cent in the fiscal year ending March 2025, to $13.29bn, according to the Gem and Jewellery Export Promotion Council (GJEPC).

That’s among the lowest annual export figures for two decades, although not, as widely reported, the lowest of all. The GJEPC figure for 2005 was $12.3bn, up from $10.3bn in 2004. By comparison 2023/4 foreign sales totaled $15.97m.

Overall gem and jewellery exports fell 11.7 per cent in 2024/5 to $28.5bn, the lowest figure in four years.

But there are signs of a recovery, with polished diamond exports for March showing a year-on-year decline of just 0.76 per cent to $1.16bn and gems and jewelry actually growing 1 per cent to $2.58bn.

“The decline in gems and jewellery exports is mainly due to the continuous dip in demand in China as well as the US, India’s key export markets, due to the ongoing geopolitical tensions,” said GJEPC Chairman Kirit Bhansali.

“Also, the correction in rough diamond prices by 10-15 per cent impacted the value, causing the overall decline in exports.”

Source: IDEX

The Golconda Blue: The Largest Fancy Vivid Blue Diamond Ever Seen at Auction

Christie’s is preparing to showcase something truly extraordinary — The Golconda Blue, a 23.24 carat Fancy Vivid Blue diamond, set to headline the Magnificent Jewels auction in Geneva on 14 May. Held at the Four Seasons Hotel des Bergues, this remarkable stone carries an estimate of between $35 million and $50 million.

Mounted in a ring designed by the legendary JAR, The Golconda Blue is not only the largest Fancy Vivid Blue diamond ever offered at auction — it’s also one of the rarest and most historically significant diamonds in existence.

Its journey through history is as dazzling as the stone itself. Originally owned by Yeshwant Rao Holkar, the Maharaja of Indore — a prominent patron of art and fine jewellery in the 1920s and 1930s — the diamond was first set into a bracelet by Chaumet in 1923. A decade later, Mauboussin transformed it into a necklace worn by the Maharani, immortalised in a striking portrait by Bernard Boutet de Monvel.

In 1947, the diamond was acquired by none other than Harry Winston, who later sold it as a brooch to the Maharaja of Baroda. After years of being held privately, The Golconda Blue is now returning to the public eye for the first time in decades.

Rahul Kadakia, Christie’s international head of jewellery, called it “a once-in-a-lifetime opportunity,” noting the auction house’s long history with legendary Golconda diamonds such as the Archduke Joseph, the Princie, and the Wittelsbach.

The term Golconda itself refers to the legendary diamond mines of Eastern India, famous for producing some of the world’s most luminous, transparent, and pure gems. Among them are historic stones like the Koh-i-Noor, the Hope Diamond, and the Darya-i-Nur — and now, The Golconda Blue joins this rarefied list.

This sale is not just about a diamond. It’s about history, heritage, and the timeless allure of one of nature’s most breathtaking creations.

Russia Partners with Belarus

Alexei Vladimirovich Moiseev - Russian Deputy Minister of Finance — *Alexei Vladimirovich Moiseev – Deputy Minister of Finance*

Russia is joining forces with its ally Belarus to promote jewelry exports to China, the UAE, Vietnam, and Southeast Asia, in response to G7 sanctions.

The collaboration was agreed last Friday (4 April) after Russia’s deputy finance minister Alexei Moiseyev (pictured) met Belarus’s finance minister Yury Seliverstov in the Belarus capital, Minsk.

Both sides discussed further developing e-commerce in jewelry made in Belarus and Russia, as well as the mutual recognition of state standard marks.

The two countries are close trade partners and Belarus has been sanctioned for supporting Russia’s invasion of Ukraine.

“A marketplace for the sale of Belarusian and Russian jewelry on foreign markets is planned to be launched in test mode this year, Moiseyev said, according to BelTA, Belarus’s state news agency.

He said the Eurasian Development Bank, founded jointly by Russia and Kazakhstan, was taking part in the collaboration.

Source: IDEX

Petra Diamonds delays sale amid US tariffs uncertainty

Tender of diamonds from the Williamson mine in Tanzania proceeded as planned.

Africa-focused Petra Diamonds has postponed a scheduled sale of about 200,000 carats of diamonds from its Cullinan mine in South Africa, citing uncertainty over the impact of new US tariffs.

Last week, US President Donald Trump announced sweeping import tariffs ranging from 10% to over 100%, including a 30% duty on many South African goods. The move has injected volatility into the global diamond market.

Petra, which holds the world’s third-largest diamond resource, said the decision to delay the Cullinan sale aims to secure stronger market prices once the tariff situation becomes clearer. The sale had been expected to generate approximately $18 million in revenue.

Despite the disruption, the company managed to complete sales from its Finsch mine in South Africa and the Williamson mine in Tanzania before the tariffs were introduced.

South Africa remains one of the largest diamond exporters to the US, alongside India.

So far in the 2025 financial year, Petra has earned $103 million from rough diamond sales, down from $138 million during the first five tenders of the previous year.

Source: mining.com

Mining Company Alrosa Unveils Russia’s Largest-Ever Diamond

The 100-carat vivid yellow stone named New Sun

Russian diamond producer Alrosa announced Friday that it finished the two year cutting process of the country’s largest ever diamond a 100 carat vivid yellow stone named New Sun.

New Sun was cut from a billion year old 200 carat rough diamond, which was unearthed from an ancient riverbed at the Ebelyakh mine in the Far East republic of Sakha (Yakutia).

Alrosa said 15 of Russia’s top jewelers worked meticulously to “achieve the perfect balance between light, color and the play of shades.”

“Thanks to the highest skill of Russian experts, the diamond has acquired impeccable proportions that accentuate its depth and brightness of its sunny hue,” the company said.

The cutting process marks a “new stage” in the development of the Russian Cut, a gem cutting technique known for its precision and brilliance, Alrosa said.

“New Sun is one of the most significant events in the gemstone industry in recent years, highlighting Russia’s high status in the global diamond industry,” the company said.

Last month, Alrosa announced the temporary suspension of operations at several less profitable sites, reducing annual production by less than 1 million carats. The company still plans to produce 29 million carats of diamonds in 2025.

Alrosa, which is under an EU and G7 import ban, is the world’s largest diamond mining company by volume. It cut production by 2.8% to 34.6 million carats in 2023 and by 4.6% to 33 million carats in 2024.

Source: Themoscowtimes

Diamond miner Lipari begins trading on Cboe Canada

Canadian diamond miner Lipari Mining has officially begun trading on the Cboe Canada stock exchange following the completion of its recently announced reverse takeover.

“Listing on Cboe Canada marks a major milestone in our company’s growth,” CEO Ken Johnson stated in a news release Monday, adding that the exchange’s global footprint would allow the company to broaden its shareholder base and increase market visibility.

Shares of Lipari Mining traded at C$0.57 at Monday’s open, for a market capitalization of approximately C$83.7 million ($58.5 million).

Formerly known as Golden Share Resources, the company announced last month that it is acquiring Lipari Diamond Mines (LDM) and its assets in Angola and Brazil through an RTO, following which LDM shareholders would own nearly all (96.7%) of the combined company’s shares.

Prior to closing the transaction, LDM raised approximately $3.62 million through a private placement of subscription receipts to support the future development of its two diamond assets.

In Angola, Lipari owns a 75% equity interest in Tchitengo diamond project, encompassing 30 known kimberlite deposits. The Tchiuzo kimberlite represents the most developed, having already been taken to pre-feasibility by Sociedade Mineira de Catoca and ALROSA in 2013 after spending a reported $35.6 million.

In an earlier news release, CEO Johnson said the company has planned a bulk sampling program at Tchiuzo to follow up on the confirmatory drilling completed by LDM last year. This is targeted to produce a representative parcel of rough natural diamonds for evaluation and making a production decision.

Lipari also owns 100% of the Braúna diamond mine located in the state of Bahia, Brazil. Since entering commercial production in July 2016, the mine has produced nearly 1.2 million carats of natural rough diamonds from 6.54 million tonnes of kimberlite mined, for an average production grade of 18.2 cpht. Operations are now focused on the transition of the mine from an open pit to an underground operation.

According to Johnson, the mine is ramping back to full capacity, with the transition to underground mining largely completed. “Our first sale of diamond production from our underground operation is expected in April,” he added.

Source: Mining.com