Botswana Has the World’s Two Richest Diamond Mines

Diamond mine, in Botswana
Diamond mine, in Botswana

A new list names the Jwaneng diamond mine, in Botswana, as the world’s richest diamond mine.

A new list by miningintelligence.com, quoted by IDEX Online, names the Jwaneng diamond mine, in Botswana, as the world’s richest diamond mine for the first three quarters of 2022. Jwaneng produced 10.3 million carats in 2022.

Orapa, also in Botswana, came second with 8 million carats. Both Jwaneng and Orapa are operated by Debswana, a partnership between De Beers and the government of Botswana. Jwaneng and Orapa were also listed as the two highest value diamond mines in the world, estimated at $1.25 billion and $976 million respectively, “based on average historic annualized prices of $121.5 per carat,” according to the report.

Alrrosa’s Udachny mine came third. Although Alrosa has not published production figures since the war with Ukraine, miningintelligence.com bases its conclusion on the mine’s 2021 production of 4.6 million carats. Fourth comes the Venetia mine in South Africa 4.6m carats, operated by De Beers. In fifth is Nyurba, in Russia, with 3.6 million carats, based on 2021 numbers.

Source: israelidiamond

Tanzania Reports Record $63 Million in Diamond Exports Despite Williamson Mines Closure

Tanzania Diamond mines
Tanzania Diamond mines

The Bank of Tanzania announced that the country’s diamond exports increased significantly to $63.1 million (USD) in value by November 2022. This is more than seven times of the $8.4 million export value that was recorded in the year-over year analysis since November 2021.

The good performance of the company has been attributed to the country’s diamond producer Williamson Mines which has temporarily shut down operations due to a recent tailings breach on November 7, 2022. The mine is an open pit operation located on the 146-hectare Mwadui kimberlite pipe, which is one of the world’s largest economic kimberlites.

The company belongs to the parent company Petra Diamonds, which owns 75 percent of the company, and the Tanzanian government owns the remainder. According to Petra’s official statement, production at the Williamson mine will resume in the 2024 fiscal year.

Source: Petra

De Beers Slashes Prices of Larger Rough Diamonds

Rough diamonds on display at De Beers

De Beers has made sharp price changes at this week’s sight, implementing deep reductions in larger goods and increases for smaller stones.

Prices fell by as much as 10% in 2-carat rough and above, with lower-quality items seeing the most significant drops, sources told Rapaport News Monday on condition of anonymity. Prices of diamonds under 0.75 carats rose by similar percentages, reflecting a market split that has persisted since late last year, insiders said. Sizes in between saw more modest declines.

“There have been quite wild increases and decreases,” one source said. “Not to say that they’re not justified, but it’s interesting that they’ve done that.”

De Beers declined to comment.

The adjustments follow months of sluggishness in larger, lower-quality rough as Chinese demand slumped during the country’s Covid-19 outbreaks and inflation dented mid-market US spending. Stones in the 3-grainer category and below have remained relatively strong due to steady sales of polished melee and Indian manufacturers’ efforts to fill factories with cheaper material.

De Beers kept its prices firm throughout 2022 despite the weakness in the larger categories, which constitute a significant proportion of its sales. This impacted profit margins at cutting firms, many of which perceived the miner’s rough to be expensive, insiders explained.

“These are the prices [at] which they should have been selling since October,” a sightholder commented. “It’s aligning with reality [rather than] reflecting a relatively poor end of year.”

De Beers is known for its reluctance to reduce prices during downturns, as was the case during the Covid-19 crisis. Now, as then, it has waited for a slight improvement in trading before taking action. China’s reopening has boosted sentiment, while the recent US holiday period was satisfactory, albeit slower than 2021’s record season.

The first sight of 2023, which runs Monday to Friday, comes amid uncertainty about the global economic situation, the Russia-Ukraine crisis, and the prospects for the Chinese New Year, which occurs on January 22.

It’s also a time of transition at De Beers, which is welcoming a new CEO, Al Cook, to succeed Bruce Cleaver on February 20 and is in the middle of negotiations with the Botswana government over an updated sales deal.

“Generally, things are a bit better than they were four or five months back, but that is because of low [polished] production, not because of an improvement of the market,” a manufacturing executive commented. “So the challenges remain.”

Source: diamonds.net

Sarine to Buy Majority Stake in Grading Lab GCAL

A grader at GCAL
A grader at GCAL

Sarine Technologies has agreed to acquire a majority share in New York-based Gem Certification and Assurance Lab (GCAL) amid a push to expand in the American market.

“At the beginning of last year, we started ramping up our activities in the US,” Sarine CEO David Block told Rapaport News on Thursday. “Due to that, the discussions with regard to this [deal] ramped up along with our involvement in the US market. This [deal] should be quite a significant jump in the scope of our business in the US.”

Israel-based Sarine has signed a nonbinding memorandum of understanding (MoU) to purchase the stake for an all-cash consideration, it announced in a statement on Wednesday. The parties plan to reach a final agreement in a few months once due diligence is complete, Block said. The companies have not disclosed the sale price or the size of the share.

GCAL will continue to offer its customers the same products and services as before the deal, and its executives will remain in charge, Sarine said.

However, while currently operating out of a single location in New York, GCAL will be able to implement Sarine’s e-Grading — an automated grading service using artificial intelligence (AI) — to develop the lab’s capabilities across the US and globally. The companies will begin integrating their technology and services even before the deal closes, Block explained. Sarine will continue to offer its services independently outside the US.

Founded in 2001 by Don Palmieri, family-owned GCAL is known for providing diamond certificates carrying a guarantee, rather than just reports that act as a description of grades. In 2021, it launched 8X, a cut-grading standard that it claims is more exacting than the industry’s triple Ex score.

“Sarine’s technologies will allow us to continue to abide by [our] key code of ethics while still expanding our services to meet the growing demand by consumers seeking confidence that their acquired products and services meet all norms of quality and sustainability,” said GCAL chief operating officer Angelo Palmieri.

Source: rapaport.com

Bringing over 130 Years of Diamond Expertise to Modern Grading

De Beers Institute of Diamonds
De Beers Institute of Diamonds

Confidence is the “fifth C” of the diamond sector and its role has rapidly gained increased importance at every touchpoint of a diamond’s journey. Customers, suppliers, financiers and end consumers all have a rightfully heightened demand of assurance when it comes to diamonds. With more than 130 years of experience as a leader in the industry, De Beers Group is dedicated to building and solidifying confidence within every touchpoint our diamonds reach. Designed to combine expertise with innovative technology in grading, De Beers Institute of Diamonds provides our industry with the very best in diamond verification with a range of products and services that provide confidence in product integrity, product knowledge and product assessment.

At the De Beers Institute of Diamonds, our grading is guided by three key principles:

Accuracy – Our laboratories use market leading instruments and proprietary technology to support our grading, providing the most accurate and consistent diamond appraisals.

Integrity – In using a ‘black box’ system – where diamonds are distributed in anonymous boxes so that each diamond is appraised fairly according only to its features – ensures the integrity of all our processes.

Consistency – Our team is built around some of the world’s most experienced graders, who undergo rigorous training, carrying the knowledge and expertise to evaluate every diamond accurately and consistently, wherever it was mined.

Every diamond we grade as part of our services is natural, untreated and from a recognized diamond producer.

We believe there is more to a diamond than its weight and appearance. We work only with natural diamonds, disclosed to us as compliant with the United Nations mandated World Diamond Council Kimberley Process – a foundational commitment to the modern diamond industry. Additionally, an assessment from De Beers Institute of Diamonds provides diamantaires with confidence in a report of each diamond’s 4Cs of carat, color, clarity and cut. Every diamond graded at De Beers Institute of Diamonds is given a unique inscription number, allowing the diamond details to be tracked and viewed on our website, for added peace of mind.

Every diamond we handle has benefited from our unrivalled range of accumulated expertise and exclusive proprietary technology – the most advanced diamond services and verification instruments in the trade.

Hardwiring our expertise into technology underpins our ability to give customers accurate, reliable and repeatable outcomes within our diamond grading services. Our technology leadership ensures our customers can have 100% trust in both the integrity and assessments of their diamonds, helping them in turn offer this priceless commodity to their own supply chain partners. This confidence is passed to the end consumer, providing both promise and security that their diamond has been on a journey filled with our guiding principles of transparency, accuracy and consistency.

Without the ability in instill confidence within the industry and directly the consumer, a diamond holds very little value. Empowering the industry with our expertise channeled into technology and grading allows De Beers to deliver the most reputable product on the market. Diamonds are so much more than just their unique beauty and De Beers Institute of Diamonds ensures their story remains as intact as their sparkle.

Source: institute.debeers.com

Rio Tinto’s Unique $1.24m Midnight Sun Diamond Ring

Midnight Sun Diamond Ring
Midnight Sun Diamond Ring

Pink and yellow diamonds from two iconic Rio Tinto mines – Argyle and Diavik – have been brought together to create a unique ring.

It’s called Diavik Midnight Sun and has been valued at $1.24m.

An 18.08 carat fancy intense yellow oval diamond from Diavik, in sub-Arctic Canada, contrasts with an intricate setting of rare Argyle pink diamonds, from the now-closed mine in in the remote East Kimberley region of Western Australia, weighing 4.09 carats in total.

The yellow diamond was cut from a 36.75-ct rough gem, described as one of the finest large yellow diamonds uncovered at Diavik.

Rio Tinto’s general manager of sales and marketing for its diamonds business, Patrick Coppens said “This combination of a rare yellow Diavik diamond and Argyle Pink Diamonds, the rarest diamonds in the world, is a special moment in the history of Rio Tinto’s unique place in the natural fancy coloured diamond industry.

He paid tribute to luxury jeweler Musson for creating the ring. The Diavik Midnight Sun takes its inspiration from the exquisite natural phenomenon that occurs when the sun is seen at midnight in the Arctic, exhibiting beautiful golden and pink hues.

Source: IDEX

Christie’s Garners $46M from Hong Kong Sale

Rivière diamond necklace
Rivière diamond necklace

A rivière diamond necklace was the top seller at Christie’s Magnificent Jewels in Hong Kong on Monday, bringing in $5.9 million.

The sale price for the piece, which features 52 round brilliant-cut, D-flawless and internally flawless diamonds weighing a total of 104.84 carats, was within estimates. In total, the November 28 auction achieved $46.2 million, with 50% of the jewels on offer exceeding their high estimates, Christie’s said Monday.

The company sold 86% of available lots, or 82% by value, and drew global participation from 21 countries across three continents.

The auction also included a collection of jewels from Hong Kong actress Rosamund Kwan, which fetched a combined total of $11.1 million. The two leading lots from that sale saw heavily competitive bidding, lasting over 15 minutes, Christie’s noted. The top item in the group was a necklace featuring a pear brilliant-cut, 22.18-carat, D-color, VVS1-clarity diamond pendant with rubies and pink diamonds, which went for $2.1 million, within estimates.

Here are the rest of the top five:

A jadeite, diamond and sapphire necklace by Etcetera sold for $2.8 million against a presale estimate of $2.6 million to $3.8 million.
This cushion modified brilliant-cut, 60.79-carat, fancy-vivid-yellow, VS2-clarity diamond ring brought in $2.7 million, in the middle of its $2.3 million to $3.6 million presale range.
A round brilliant-cut, 19.61-carat, D-flawless, type IIa diamond ring exceeded its $1.7 million to $2.3 million presale estimate, bringing in $2.4 million.
This oval-cut, 5.32-carat Burmese pigeon’s blood ruby ring with pear-shaped diamonds by Cartier Paris achieved $2.1 million, within its expected range of $1.9 million to $2.3 million.

Source: Diamonds.net

Diamond diggers in South Africa’s deserted mines break the law — and risk their lives

Jefferson Ncube, an illegal diamond miner from Zimbabwe, works on his latest tunnel at an abandoned De Beers mine near Kleinzee, South Africa.
Jefferson Ncube, an illegal diamond miner from Zimbabwe, works on his latest tunnel at an abandoned De Beers mine near Kleinzee, South Africa.

Bracing against the vibrations of the jackhammer, illicit diamond miner Jefferson Ncube bores steadily into the rock face before him, sending chunks of dry stone clattering to the ground and filling the air with a cloud of pale gray dust. He’s 30 feet below the surface of the desert in the Namaqualand region of South Africa in a tunnel barely tall enough to crawl through.

“I don’t enjoy this at all, but I need the money,” says Ncube, who holds a degree in agricultural science from the University of Pretoria but says he has been unable to find work elsewhere. “I have a family to support, a wife and a 1-year-old child.”

The Nuttabooi mine, near the coastal town of Kleinzee, was once mined by the diamond giant, De Beers, the largest of dozens of industrial mining operators who, for the best part of a century, formed the backbone of the region’s economy.

A diamond miner hauls up a bucket of gravel at an illegal mining site in South Africa's Northern Cape Province.
A diamond miner hauls up a bucket of gravel at an illegal mining site in South Africa’s Northern Cape Province.

But over the past 20 years, rising operational costs and a dwindling supply of diamonds have made large-scale industrial mining increasingly unviable. The sector’s steady decline has left a legacy of chronic unemployment in Namaqualand but has also created opportunities for a growing number of desperate young men and women willing to tolerate hardships and dangers as they eke out a living in abandoned mines.

Known locally as “zama-zamas” — loosely, “ones who try their luck” in isiZulu — unlicensed miners like Ncube are considered illegal by the government. Yet here on South Africa’s wild and diamond-rich Atlantic coast, residents say the number of zama-zamas has burgeoned in recent years, fueled by the lack of jobs, the economic impact of the COVID-19 pandemic and the rising cost of living, as well as by political and economic crises in neighboring countries.

An ilegal diamond miner breaks up rocks at the Nuttabooi mine near Kleinzee, South Africa.

Earlier this year, South Africa’s minister of Mineral Resources and Energy, Gwede Mantashe, described illegal mining as a “plague” amid reports of rampant corruption, extortion and violence linked to zama-zama activity across the country, not only in relation to diamonds but also coal, and other minerals such as gold and chromite. Once confined largely to the country’s estimated 6,100 abandoned or ownerless mines, officials say illegal mining is increasingly spilling over into operational mines too.

Ncube is part of a 12-man team, all of them migrants from Zimbabwe, where hyperinflation and unemployment have made it all but impossible to build a stable life for their families. Out in the desert, living conditions are bleak and working conditions even worse, but with some basic tools and a little knowledge of geology, they manage to make ends meet. The men, almost all of whom have arrived in the past two years, share the work and split whatever profits they make.

Members of an illegal diamond mining collective look down a mineshaft at the Nuttabooi mine.

“We dig down until we hit the bedrock, then we go sideways through this belt,” says Ncube, pointing at a band of rock and gravel on the side wall of the tunnel. “This is where we find the diamonds. In the past, they used hammers and chisels. But if you use a jackhammer, you can take out more rock and then there are more diamonds for you.”

Danger in the tunnels

A zama-zama uses a jackhammer to break up rock in an abandoned De Beers mine.

The miners have little in the way of safety equipment, and their tunnels are prone to collapsing. A little more than half a mile from here, at the neighboring Bontekoe mine, a simple granite plaque in the desert commemorates the miners who lost their lives in a particularly deadly collapse in 2012. Smaller accidents occur frequently and often go unreported. Community leaders say that at least six people have died at Nuttabooi alone in the past few months.

To try to stay safe, Ncube and his colleagues make a point of leaving “pillars” at 6-foot intervals as they tunnel through the ground. But it’s an imperfect system, made harder by the fact that tunnels dug by different groups of miners often collide.

An illegal diamond miner looks out from the top of a De Beers mine that has since been taken over by zama-zamas.

“If the hole is ‘paying,’ people get greedy and they eat away at the pillars until the whole thing is just hanging,” says Ncube. “That’s how some guys died just two holes away from here. If you get greedy you’ll die down here, and then your family will suffer even more.”

After handing over to a colleague, Ncube climbs carefully back up the vertical mine shaft and hauls himself over the edge. At the surface, in a stark, lunar landscape of craters and piles of rubble, zama-zamas cluster together around their holes, sifting through gravel and chatting over the low hum of diesel generators. A few hundred yards away, the old De Beers mine lies abandoned, a massive scar on the face of the desert, hemmed in by towering mine dumps.

“De Beers has taken all the diamonds out of Namaqualand and now we’re back in poverty,” says Andrew Cloete, a longtime illicit miner who lives in a small tent of black and red plastic sheeting in the ever-expanding squatter camp below the Nuttabooi mine. “The companies left us like they found us — with nothing. But if we just sit there thinking about it, our kids will die. So we, the diggers, come in here and take the scraps.”

Andrew Cloete, a diamond miner and activist for mining rights, photographed in his shack in a squatter camp at the Nuttabooi mine in Namaqualand, South Africa. The government considers the activity at Nuttabooi illegal because the miners do not possess permits.

The plight of the zama-zamas

There is a palpable sense of anger, particularly among the miners who grew up in Namaqualand, over how little of the region’s diamond wealth has stayed in the local area. Over several decades, vast quantities of diamonds have been exported overseas, yet most of the area’s roads are still unpaved, service provision is haphazard at best and poverty and alcoholism are endemic. Unemployment in the province stands at over 46%.

“Africa’s f***ed up. We don’t have jobs, all we have is minerals — but they’re being looted by the West,” said one miner, an unemployed mechanical engineer who didn’t want to be named, citing concerns that he may be targeted by the authorities. “This is our Africa. This is our land. These are our minerals.”

Zama-zamas have little bargaining power and are forced to sell their finds to black-market buyers for a fraction of their true value.

Outside Cloete’s tent, men wander through a small city of plastic lean-tos that has sprung up in the desert over the past two years. The camp has enveloped a handful of derelict buildings left behind by the mining companies, where zama-zamas now sleep side by side on filthy mattresses on the floor. The camp, home to around 1,500 people, has no electricity, running water, clinics or sanitation but a surplus of bars and taverns that do a steady round-the-clock trade.

“Nobody would live in conditions like this if there wasn’t a need,” says Cloete, gesturing toward the scene outside. “We’re here because of poverty, hunger and joblessness.”

They’re not getting rich off their diamonds

Diamond miners at an illegal dig site in Namaqualand, South Africa.

After lighting a cigarette, Cloete reaches for a small glass jar and takes out a plastic packet from inside. Carefully, he empties its contents into his palm. About a dozen small, rough diamonds tumble out. On international markets they might fetch a substantial sum, he says, but due to the illegal nature of their work, the zama-zamas have little bargaining power and are forced to sell their finds to black-market buyers for a fraction of their true value.

“They buy diamonds like they’re buying sweets,” complained one zama-zama. “You get people buying diamonds for 100 Rand [about $5.50].”

Cloete, who founded an informal group of mineral rights activists known as the “Mining Fighters,” has spent years petitioning the South African government to find a productive way to formalize zama-zama mining, a move that he says would lead to safer working conditions and a fairer marketplace for local diamonds, as well as bringing in considerable revenue for the government. Similar systems are in place in many other African countries, where so-called artisanal mining, carried out by individuals or small groups using traditional methods and basic equipment, is now a major employer and revenue generator.

A swimming pool lies empty in the town of Kleinzee in the Namaqualand region of South Africa.

The town was once the property of the De Beers diamond company. In its heyday, it was a thriving settlement of 4,000 people with about 30 recreational clubs. After closing down its mines in the region, De Beers sold off the town, which is now largely empty.

But Cloete says he has yet to receive a response. “They treat us like we’re criminals,” he says.

Many in the formal diamond sector would also like to see the legalization and regulation of informal mining, which they say hampers their legal operations and fuels a parallel black market in illegal diamonds.

“At the end of the day, it’s a situation that’s totally unbearable for us,” said Gert Van Niekerk, chairman of the South African Diamond Producers Organisation, an industry body representing legal diamond miners. “This is not the Wild West.”

Kim Cupito

Kim Cupito, who lives with her husband in a derelict building left behind by De Beers, lost her job during the pandemic. “We need to survive, and this is God’s ground. It’s for everybody,” she says.

In Kleinzee, a faded mining town once owned by De Beers, where most homes now lie empty, residents say the influx of illegal miners from around South Africa and neighboring countries has led to a rise in crime.

The uncertain future faced by zama-zamas

“Zama-zamas aren’t welcome here,” said one Kleinzee restaurateur. “They have knives, they have guns, they’re gangsters. They can come and buy things here, but afterward they must leave. We don’t want them here.”

Illegal diamond miners try to get phone reception at a mining site in Namaqualand, South Africa.

In a policy document released in March, South Africa’s Department of Mineral Resources and Energy announced its intention to create a new police unit dedicated to combating illegal mining. It also laid out plans to make it easier for artisanal and small-scale miners to legally acquire mining rights by streamlining the expensive and time-consuming process of applying for a permit.

Police raids are frequent. In one major operation in July, a combined force of police and other law enforcement bodies backed by two helicopters and a spotter plane raided the Nuttabooi site, arresting over 100 people and confiscating 130 generators and 121 jackhammers, along with other equipment. But within days, mining activity had resumed.

But creating new legislation to support the policies could take time. And critics say it’s unrealistic to hope that many zama-zamas will voluntarily cease their activities, undergo training, comply with regulations and start paying taxes and royalties to the government, especially given that many are in the country illegally and would not be eligible for mining permits.

In the meantime, Namaqualand’s zama-zamas don’t intend to wait around.

“There’s nothing for us out there,” said Kim Cupito, a former fruit trader who lost her job during the pandemic and now lives with her husband in a derelict De Beers building with gravel piled up in the hallways and gaping holes in the roof. “We need to survive, and this is God’s ground. It’s for everybody.”

Picures by: Tommy Trenchard for NPR

Source: npr.org

$35M Pink Diamond Pulled from Christie’s Sale

The 13.15 carat pink diamond

A 13.15 carat pink diamond will no longer be available at the upcoming Christie’s Magnificent Jewels auction in New York.

The emerald-cut, fancy vivid pink, VVS1 clarity stone, which carried a price estimate of $25 million to $35 million, was poised to be the December 6 sale’s showcase piece. Christie’s described the diamond as one of the largest of its kind to appear at auction.

“Christie’s confirms that the fancy vivid pink diamond ring has been withdrawn from sale in New York on December 6,” a spokesperson said. The company declined to comment further or provide a reason.

The item was scheduled to appear on display in Hong Kong on Friday. The removal was “very surprising,” said one colored diamond dealer in the municipality.

Colored diamonds have had a mixed season at auction. On November 8, the 18.18-carat Fortune Pink fetched CHF 28.4 million ($28.9 million) at Christie’s Geneva, toward the lower end of its presale estimate. The following day, a 5.53 carat diamond from the De Beers Exceptional Blue Collection failed to find a buyer at a Sotheby’s auction in the Swiss city.

With the 13.15 carat pink off the list, the top remaining item at the Magnificent Jewels sale is a pear modified brilliant cut, 31.62 carat, fancy blue diamond pendant with a price estimate of $10 million to $15 million.

Source: Diamonds.net

$15M Blue Diamond to Hit Christie’s Auction Block

31.62-carat, blue diamond pendant

A blue diamond pendant will be among the headliners in next month’s Christie’s sale in New York, where it is expected to bring in up to $15 million.

The pear modified brilliant-cut, 31.62-carat, fancy-blue stone, surrounded by white and pink diamonds, is potentially internally flawless, Christie’s said Tuesday. A pear brilliant-cut, 86.64-carat, D-color, VVS1-clarity diamond pendant will join it at the December 6 Magnificent Jewels sale. That piece, which hangs from a chain of 78 diamonds between 0.50 and 2.50 carats, is estimated at $5 million to $7 million.

Other notable items include a torque bangle bracelet bearing a heart brilliant-cut, 50.05-carat, D-color, internally flawless diamond, with a presale price of $3.7 million to $4.5 million.  A modified pear double rose-cut, 5-carat, fancy-vivid-blue diamond ring has an upper estimate of $4 million and no reserve. An oval brilliant-cut, 51.60-carat, G-color, VS2-clarity diamond ring carries a high price of $2.8 million.

Christie’s will also offer an unmounted modified pear brilliant-cut, 104.04-carat, fancy-intense-yellow diamond. That jewel has an upper estimate of $2.5 million, as does a round-cornered square brilliant-cut, 107.46-carat, fancy-yellow diamond brooch by Graff. Meanwhile, an emerald-cut, 13.75-carat, fancy-vivid-yellow, internally flawless diamond ring by De Beers and an oval brilliant-cut, 2.21-carat, fancy-intense-blue diamond ring are set to fetch up to $1.8 million each.

Those items join the star of the show: An emerald-cut, 13.15-carat, fancy-vivid-pink diamond ring that Christie’s expects will fetch up to $35 million at the auction.

Source: Diamonds.net