De Beers, the world’s leading diamond producer by value, has concluded negotiations with the Botswana government on a new sales agreement and the extension of mining licenses for their joint venture, Debswana, until 2054.
The finalized agreement, the Anglo American unit said on Monday, follows discussions aimed at setting a new framework for the sale of rough diamond production from Debswana, a 50:50 partnership between De Beers and Botswana. The deal also secures the renewal of Debswana’s mining licenses, which were previously set to expire in 2029.
“Until the execution of these new agreements, the terms of the existing agreements will continue to remain in effect,” the diamond producer said.
Currently, 75% of Debswana’s diamond output is sold to De Beers. In 2023, the two parties reached a provisional 10-year agreement under which Botswana’s share of production was set to gradually increase to 50%.
The accord also established that Botswana’s state-owned diamond trading company was expected to receive 30% of Debswana’s production.
The government would also secure 10 billion pula ($712 million) in development funding as part of the deal. However, the deal stalled under the leadership of former President Mokgweetsi Masisi.
In January, newly elected President Duma Boko announced that his administration had reached an agreement with De Beers. Botswana, the world’s largest producer of rough diamonds by value, depends on the industry for the majority of its national revenue.
This new agreement comes at a pivotal time for De Beers as parent company Anglo American plans to spin off the diamond business through either a sale or an initial public offering. Analysts have noted that current depressed diamond prices may complicate efforts to finalize such a transaction.
Botswana remains a cornerstone of De Beers’ operations, accounting for 70% of its annual rough diamond supply. The government also holds a 15% stake in De Beers, underscoring the importance of the long-standing partnership between the two parties.
A diamond bracelet gifted by Michael Jackson to Elizabeth Taylor sold for $147,000, almost double its high estimate.
The diamond line bracelet, set with 27 graduated radiant-cut yellow-tinted diamonds was expected to fetch $61,000 to $86,000 (£50,000 to £70,000).
It sold on 30 January at the Woolley & Wallis auction house, in Sailsbury, southern England.
Taylor (who died in 2011) and Jackson (who died in 2009) were close friends for many years. Taylor was godmother to Jackson’s children Paris and Prince, and Jackson, the King of Pop, gifted her a number of jewelry pieces over the years. Among them was this bracelet, with a central diamond weighing 3.38 carats.
The bracelet was sold previously in December 2011, for $182,500, at Christie New York’s The Collection of Elizabeth Taylor. It raised $116m (way beyond its $20m estimate) and broke the record for any collection of jewelry sold at auction.
Marielle Whiting, jewelry specialist at Woolley & Wallis, described the bracelet as a “beautiful and highly wearable diamond bracelet with truly legendary provenance that continues to live on”.
India has been emerging as a bright spot for the cut and polished diamonds amidst a slowdown in key markets such as the US and China, Amit Pratihari, managing director, De Beers India told Reuters on Wednesday.
India is the world’s largest centre for cutting and polishing diamonds, accounting for nine out of 10 diamonds polished globally, according to Indian government data.
However, the country’s cut and polished diamond exports fell this year because of weak demand from China and the US, forcing the industry to focus on the growing domestic market that surpassed China last year to become the world’s second-largest.
“China has completely slowed down in the luxury segment … We see India growing very strongly,” Pratihari said in an interview.
De Beers, a unit of Anglo American, is the world’s top diamond producer by value and India’s number one supplier of rough diamonds.
However, there were some early signs of recovery in the US and “big growth” in the Middle East, Pratihari said.
“In next couple of months, we expect recovery,” he said.
Weak exports demand for polished diamonds forced Indian processors to trim imports of rough diamonds by 22% to $7.9 billion during April to December, according to India’s Gem and Jewellery Export Promotion Council (GJEPC).
De Beers is adjusting prices of rough diamonds to support the midstream industry – companies that buy rough diamonds from miners and sell them after cutting and polishing to retailers – in the face of polished diamond prices falling more than those of rough diamonds, he said.
“Miners are controlling the supply so more rough does not come into the market that would put additional pressure on the polished prices. But the pressure on polished prices is in midstream as in retail there is no change,” he said.
India’s cut and polished diamond exports fell by 8.3% to $9.76 billion in April-December compared with the 2023 period, according to GJEPC.
Gem Diamonds today (29 January) reported a dip in quarterly revenue but a year-on-year increase of 10 per cent, boosted by a flurry of high-value recoveries.
The UK-based miner sold $152.8m of rough in 2024, compared to $139.4m in 2023. Sales in Q4 last year were $32.2m, down almost 25 per cent on Q3.
Gem’s Letseng mine, in Lesotho, is the highest dollar per carat kimberlite diamond mine in the world.
During the year Gem sold 13 +100-cts diamonds recovered during the year, compared with just five the previous year.
The mine has averaged eight +100-cts since it started operations 17 years ago.
Six diamonds sold for more than $1m during Q4, the company said, contributing $11.6m. The highest price achieved in the quarter was $45,077 per carat for a 3.52-carat pink diamond.
Average price per carat during FY2024 was $1 ,334, a 4 per cent increase on the previous year. Th e number of carats recovered fell 4 per cent to 105,012.
Botswana’s president Duma Boko, who swept to power in October elections, said his government has reached a diamond extraction and sales agreement with De Beers that will bring certainty to the gem-dependent economy.
Terms were finalized by midnight on Jan. 24 and will be announced soon, Boko said in an interview on Tuesday. The southern African nation is the world’s biggest producer of rough diamonds by value and the industry generates the bulk of its income. Most of Botswana’s gems are mined by Debswana, a venture between Anglo American Plc’s De Beers unit and the government.
“The issue with De Beers has been settled,” Boko said in Dar es Salaam, Tanzania, where he is attending an energy conference. He indicated last week at the World Economic Forum in Davos, Switzerland, that an agreement was imminent, and said he had followed through on his commitment to conclude it.
During his election campaign, Boko was critical of his predecessor Mokgweetsi Masisi’s handling of talks with De Beers to renew the more than half century alliance between Botswana and the world’s largest diamond firm. Masisi had caused De Beers to consider walking away from the deal, Boko said, and he sought to reopen talks.
Boko’s Umbrella for Democratic Change coalition unseated Masisi’s Botswana Democratic Party, which had led the country since independence from the UK in 1966.
The new agreement had not resulted in “any major changes, just a little tweaking of things here and there,” he said.
Under the provisional terms of a 10-year accord announced by Botswana’s previous administration in July, the state-owned diamond trader was to get 30% of Debswana’s output, while the government would secure 10 billion pula ($720 million) in development funding.
De Beers didn’t immediately respond to a request for comment.
An arid, underdeveloped nation at independence, Botswana has leveraged the discovery of diamonds in 1967 to build itself into the richest country per capita on Africa’s mainland, according to the World Bank.
Lab threat Still, a prolonged slump in the global diamond market and a challenge from lab-grown gems has hurt its economy. Boko said the agreement will restore certainty and economic growth will follow.
The country will focus on promoting its gems as natural and charging a premium for their provenance, marking them to show they have been mined in the country and their sale promotes development, he said. Diamond revenues in some other parts of Africa have been used to finance conflict.
“We appreciate the threat posed by lab-grown diamonds. I don’t want to give them the privilege of calling them diamonds. Diamonds are natural,” he said. “We will then market our diamonds in terms of their provenance and of the story behind the diamond.”
Botswana and De Beers are reportedly on the brink of signing a critical and long-awaited sales agreement that was due for renewal back in June 2023.
Botswana’s new President Duma Boko told reporters last Thursday (23 January) he was hoping it would happen as early as Friday, although as of Sunday (26 January) there was still no confirmation.
Boko, speaking at the World Economic Forum’s annual meeting in Davos, Switzerland, said there was just some “tidying up” left, according to a Reuters report.
The deal, which would see Botswana’s share of diamonds from the Debswana joint venture increase from 25 per cent to 50 per cent over the next decade, was agreed in principle by Boko’s predecessor Mokgweetsi Masisi after he repeatedly threatened to walk away from it.
But the actual deal, with all the small print, was never signed. The deal also extends mining licenses until 2054 and commits De Beers to invest up to $825m over 10 years to help develop Botswana’s economy.
A brazen diamond robbery at Namibia Desert Diamonds (Namdia) early on Saturday evening and involving what is suspected to be the company’s largest-ever consignment of precious stones received, has resulted in two fatalities and two arrests.
Although the figure could not be independently verified, a person with intricate knowledge of the matter said the diamonds are worth more than US$15 million (about N$280 million).
This consignment was reportedly delivered to Namdia’s premises by the Namibia Diamond Trading Company (NDTC). NDTC is a 50:50 joint venture between the government and De Beers Namibia Holdings. It was formally conceived in January 2007 following an agreement to sort, value and market Namibian diamonds.
Responding to questions yesterday, NDTC CEO Brent Eiseb could not provide any details for security reasons.
“For safety and security reasons, NDTC does not provide details of rough diamond deliveries/movements. Kindly refer all incident-related queries to Namdia,” Eiseb said.
The Namibian Police have said the exact amount of diamonds stolen in the robbery is unknown, pending an inventory by Namdia.
“The suspects fled with an unspecified amount of Namdia’s diamonds, whose value is still to be ascertained. There were four suspects involved in the robbery. Two suspects are currently on the run. One suspect is in police custody. One suspect died from a self-inflicted gunshot wound during the incident,” Alisa Amupolo said in another statement issued late yesterday. According to sources familiar with Namdia’s modus operandi, the company was warned to tighten up its security.
This, however, never happened. “There were several warnings last year that the security left a lot to be desired. The staff has been worried about this. The board chairman [Justus Hausiku] warned Alisa Amupolo [CEO] several times to focus on security,” said the source, who preferred to speak on condition of anonymity.
Despite the advice to improve its security, Namdia’s offices were guarded by a single security guard only identified as Herman, who was seconded from a local security company.
During the heist, Herman was handcuffed, but somehow managed to notify people at neighbouring premises to call the police, claiming “we’re being robbed”.
Execution
The police confirmed the execution-style killing of a Namdia protection officer during the robbery, as well as one of six perpetrators who succumbed to injuries sustained during the theft. “It is with deep sadness that we confirm an attempted armed robbery at our premises earlier today [Saturday], which tragically resulted in the loss of one of our valued staff members. We are cooperating fully with law-enforcement, and a thorough investigation is currently underway. As this is an ongoing investigation, we are working closely with the relevant authorities to establish the facts surrounding the incident. Namdia remains fully committed to ensuring the safety and security of both its staff and diamonds,” Amupolo said.
Crime report
The weekend police crime report issued yesterday stated that the robbery and murder occurred between 17h00 and 18h00 at the Namdia head office in Klein Windhoek. The police say armed suspects broke into the Namdia premises through yet-to-be determined means.
The police further said the robbers held staff hostage by tying them up before stealing an undisclosed amount of diamonds.
“In one of the storerooms, the supervisor, who is a protection officer, was found dead with his hands and legs tied up and his face covered with a shopping bag, and a gunshot wound inflicted to the head. He was identified as Francis Eiseb, a 57-year-old Namibian male. His next of kin have been informed of his death,” the police crime report states.
Police said one of the robbery suspects was found with what appeared to be two gunshot wounds. Late yesterday, police identified Max Endjala as the deceased suspect who was allegedly involved in the Namdia heist. His next of kin have also been informed of his death. He was an auditor at a local firm, according to reports.
Law-enforcement officers at the scene collected four firearms and some knives. The investigation is ongoing, with the police appealing to members of the public who might have any information about the robbery or the suspects to pass it on to the relevant authorities.
Furthermore, sources said staff at Namdia were called in yesterday for interrogation on the robbery, which some people suspect took place based on inside information regarding the amount of diamonds on the premises at the time.
Family ties
State broadcaster NBC also reported that one more arrest had been made in connection with the robbery. The male suspect is employed as a security officer at Namdia and is related to Endjala, the suspect who allegedly shot himself in the head, NBC reported.
Fond memories
In a social media post on Sunday, Namdia’s former CEO Kennedy Hamutenya hailed Eiseb as one of the hardest-working and most committed employees during his time.
Eiseb, he reminisced, would perform above and beyond the call of duty. “He’d even volunteer to drive clients to and from the airport to ensure their safety. He was kind and cordial to all other colleagues, and was full of respect,” Hamutenya’s post reads.
Also taking to his WhatsApp social media platform yesterday was Bryan Eiseb, the Head of the Financial Intelligence Centre and a brother of the late Francis, who said the Eiseb family has “forgiven those who are responsible for Francis’ horrendous death. You [Francis] have paid the ultimate price for Namibia.”
Namdia was founded by the government in 2016 to independently market and sell Namibia’s diamonds on the international market. The Namdia headquarters is considered one of the most secure in Windhoek, considering the value consignments it regularly handles. It is estimated that Namdia annually sells some N$2 billion worth of diamonds on the international market. Read more: ‘N$280m gems’ stolen in Namdia heist https://neweralive.na/n280m-gems-stolen-in-namdia-heist
Richemont, the Swiss luxury goods conglomerate, saw jewelry sales from its Cartier, Van Cleef & Arpels,Vhernier and Buccellati jewelry maisons surge by 14 per cent in the last three months, in what it said was a “very solid end to the calendar year”.
Its eight watch brands, including A. Lange & Sohne, Baume & Mercier, IWC Schaffhausen and Jaeger-LeCoultre, staged a recovery, from a 17 per cent drop during the previous quarter (Q2) to a Q3 fall of 8 per cent.
Overall the group said it enjoyed its highest ever quarterly sales – €6.2bn ($6.8bn) – a year-on-year rise of 10 per cent. Jewelry and watches account for almost 90 per cent of the group’s revenue.
Other sectors – fashion, accessories, pens and other luxury items – saw sales increase by 11 per cent.
Richemont performed well overall, despite a 7 per cent drop in sales in Asia Pacific, its single biggest market. All other regions – Europe, Americas, Japan and Middle East/Africa – saw sales up by between 19 per cent and 22 per cent.
Sales for the last nine months of 2024 were €16.2bn ($17.3bn), an increase year-on-year on 4 per cent at constant exchange rates.
Jewelry maisons saw their growth “accelerate this quarter to +14 per cent against a demanding +12 per cent comparative in the prior-year period,” said the company.
“This was fuelled by the performance of iconic jewellery and watch lines supported by novelties which met a strong success, particularly during the festive season.
“Sales progressed across all channels and almost all regions, with the strongest contribution to growth coming from the Americas and Europe.”
In its first full year as the operator of the world-class Ekati diamond mine, Burgundy Diamond Mines Ltd. marked several milestones, including consistent diamond recoveries and advancements in extending the mine’s future, reinforcing its position as a prominent player in the Canadian diamond industry while laying the groundwork for continued growth and success.
Over the past year, Burgundy worked to solidify its position as the new operator of the Ekati diamond mine by focusing on improving production and extending the mine’s lifespan. This was reflected in the consistent quarterly performance throughout the year, despite challenges in the diamond market.
“Despite suppressed diamond market prices, we remain optimistic as supply-demand tightens and look forward to launching Ekati’s tenth mine – a landmark achievement,” said Burgundy Diamond Mines CEO Kim Truter.
In less than two years, Burgundy moved quickly to expand Ekati’s capabilities, advancing beyond initial stabilization to actively pursue new development and growth. This is exemplified by the development of the Point Lake open-pit project, which is set to become Ekati’s tenth operational mine.
This quickly became a critical component of the company’s strategy to secure long-term production at Ekati. With initial production planned in late 2024, Point Lake holds more than just increased production potential but also historical significance as the first diamondiferous kimberlite discovery in Northwest Territories – which led to the eventual development of Ekati.
Burgundy Diamond Mines Ltd.
Located approximately three kilometers northeast of the main mine camp, Point Lake, evidenced by its name previously existed as a natural lake, which required draining before mining operations could begin. Dewatered in two phases, and as part of the process, a total of 523 lake trout and 6,348 slimy sculpins were relocated prior to emptying the habitat.
The water was then pumped into the King Pond Settling Facility and Lynx pit, allowing suspended solids to settle and facilitating future underwater remote mining trials at Lynx pit.
Currently, Ekati is estimated to contain approximately 140 million carats of diamonds in the indicated category, even after more than 26 years of production. These remaining resources are concentrated within the currently active Misery underground and Sable open-pit mines, with Point Lake projected to add an estimated 5.3 million carats once it begins production, further bolstering Ekati’s resource base.
This robust resource position led to a major milestone in late October, as Burgundy celebrated Ekati reaching 100 million carats of diamonds recovered – a testament to the mine’s enduring contribution to the diamond industry.
“As we reflect on this historic achievement, Ekati continues the legacy as one of the premier diamond assets in the world in a tier one location producing highly sought after sustainably and ethically produced diamonds for the global market,” said Truter.
With substantial reserves still available, Ekati is well-positioned for another 30 years of production, potentially even longer if further resources are identified.
“We are proud of the team we have in place and of everything we have achieved so far,” Truter added. “Ekati still has 140 million carats remaining in Indicated Mineral Resources, one of the largest unmined diamond endowments in the world, which provides Burgundy shareholders an indication of Ekati’s remaining mine life potential.”
Beyond Point Lake, Burgundy has also focused on extending the mine life of other key operations at Ekati. In particular, the Misery underground mine has shown promise for extended production through recent exploration efforts.
Looking ahead into 2025, Burgundy continues to focus on operational efficiency and advancing exploration to maximize Ekati’s resource base.
With production at Point Lake expected to commence and further drilling at Misery ongoing, Burgundy is executing its strategic plan to secure sustained production at Ekati.
The company is also progressing feasibility studies for additional underground sites, all aimed at maintaining Ekati’s position as a key contributor to the global diamond market, while delivering value for shareholders and supporting local communities in the Northwest Territories.
India’s gross exports of polished diamonds showed some signs of recovery during December, after a couple of months of volatility.
Foreign sales were $773m, down 10.4 per cent in dollar terms on the same month in 2023, according to the latest figures from the Gems and Jewellery Export Promotion Council (GJEPC).
But that compares to a steep year-on-year drop of 40 per cent in November, with total sales of $660m.
That came after a 11.3 per cent increase in October, when sales hit just over $1.4bn.
Before that GJEPC recorded significant year-on-year drops for every month of the year, with foreign sales in September down 22.9 per cent to $1.29bn.
India’s diamond manufacturing has been badly hit by the ongoing slump in prices and demand, with an estimated 30,000 workers having been laid off in Surat over the last six months.
December’s fall in polished diamond exports was broadly in line with the whole gem and jewelry sector (down 10.3 per cent at just under $2bn).
