De Beers – Page 5 – The Diamond Certification Laboratory of Australia (DCLA)

AI system grades diamonds faster, cheaper, more accurately

Assessing the value of a diamond is a job that’s been done by eye for centuries.

But artificial intelligence (AI) is now so sophisticated that it can do the same task faster, cheaper and more accurately.

There can be a huge difference in value even between two diamonds of the same size. That’s why a whole industry has developed, dedicated to grading them.

But advances in machine learning have now made computers more reliable than humans, according to Sarine, a diamond-tech company based in Israel.

Today the vast majority of diamond manufacturers – the businesses that cut and polish rough gems – send their loose stones to grading labs.

They wait a couple of weeks for the diamonds to be returned with certificates listing their key attributes. And they typically pay at least $100 per diamond for the service (depending on size).

Sarine aims to dramatically cuts cost and delays by locating its automated eGrading technology inside factories in a lease arrangement.

Staff operate the machine, which can grade and certify a diamond in a matter of minutes.

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It’s as convenient as using an ATM, says Roni Ben-Ari, deputy CEO & VP products at Sarine.

He says the machines consistently deliver higher quality results than the best grading labs, without the expense of employing gemologists (gemstone experts) or paying for premises, infrastructure and other overheads.

Can’t cheat the system

You may be thinking the diamond factory gets to “mark its own homework” if the grading machine is inhouse, and that it could cheat the system to get a better grade.

But Ben-Ari is adamant that the system’s security is so tight it’s simply not possible for anyone to interfere.

Every diamond is unique – like a fingerprint, a snowflake or DNA – and every diamond is identified by full 360-degree images.

The raw data that Sarine’s machines gather is securely uploaded to the cloud, and only then converted into a grading report.

It’s worth considering what’s at stake here.

An absolute top-quality natural one-carat diamond (a popular size for engagement rings) could set you back $14,000. But you could get a poor-quality diamond of the same size for under $2,000. That’s why grading a diamond is so important.

The 4Cs

Four main criteria determine the value of a diamond. They’re known as the 4Cs – carat (weight), cut (how well the rough stone has been shaped), color (the best diamonds are colorless) and clarity (absence of flaws or blemishes).

AI system grades diamonds carat, cut, color and clarity faster, cheaper, more accurately — Diamonds are valued on the basis of carat, cut, color and clarity.

Color and clarity are the hardest criteria to determine. Labs give diamonds a letter for color (from D to Z) and a label indicating one of 11 levels of clarity (from IF, internally flawless, to I3 for diamonds with the worst flaws or “inclusions”).

Weighing a diamond is straightforward, but the other three Cs can be subjective.

“I can guesstimate that if you sent the same 100 diamonds to the lab over and over again, around 70 percent would get the same grade,” says Ben-Ari.

That leaves 30% where a different lab, or a different day, or a different staff member could give the diamond a different grade – and a different value.

IF, internally flawless, to I3 for diamonds — Sarine’s system uses AI to grade clarity.

A lot of biases

“The human eye is a muscle; it gets tired,” says Ben-Ari. “It’s affected by your physical conditions, whether you’re tired or angry, or it’s the beginning of the shift or the second half of the shift.

“There are a lot of biases. It’s very difficult to educate people from different cultures in different locations around the world to grade the same diamond in the same way.

“So the labs invented a very sophisticated process where two people grade the diamond. When they agree, that’s the diamond grade and when they don’t, they bring in a third person.”

But it’s a labor-intensive business. Sarine, already an established world leader in guiding diamond cutters to get the highest value from a rough gem, realized it could develop a better way of doing things.

AI can grade diamonds

The company, founded in 1988 and based in Hod Hasharon, central Israel, embarked on the mammoth task of teaching AI how to grade diamonds.

That involved showing the AI model more than 30,000 diamonds that had already been graded by GIA (Gemological Institute of America) the world’s biggest lab. The more diamonds they showed it, the better the results.

Sarine introduced eGrading machines, using AI to grade diamonds. Photo courtesy of Sarine — Sarine introduced eGrading machines, using AI to grade diamonds.

Because Sarine deals in technology and not in physical diamonds, all those diamonds to train the computer model had to be borrowed.

That’s why Sarine’s first eGrading machines, installed in mid-2022, were located in factories in India, where over 90% of all diamonds are cut and polished.

“We started in southern India, where we have a facility with 400 employees to provide customer support,” says Ben-Ari.” The next step will be a rollout to Botswana and Namibia, both counties which mine and manufacture diamonds.”

Lab-grown diamonds

We’ve been talking so far about “natural” diamonds, but what about lab-grown diamonds?

Natural diamonds formed miles below the Earth’s surface under high pressure and high temperature in a process that took over more than a billion years.

Lab-grown diamonds are created within weeks, are optically and physically identical to natural diamonds, and now sell for a fraction of the price.

They have driven the need for cheaper grading because in many cases the cost of an ordinary certificate outweighs the cost of manufacturing the diamond.

There are, however, some complex technical differences between natural and lab-grown diamonds, which means Sarine technology can grade them in the lab but not yet remotely with eGrading at factories. Sarine is working on an AI fix for that.

Source: Jason Harris

LUCARA RECOVERS EPIC 2,492 CARAT DIAMOND FROM THE KAROWE MINE

Lucara Diamond Corp. (“Lucara” or the “Company”) is thrilled to announce the recovery of an exceptional 2,492 carat diamond from its Karowe Diamond Mine in Botswana. This remarkable find, one of the largest rough diamonds ever unearthed, was detected and recovered by the Company’s Mega Diamond Recovery (“MDR”) X-ray Transmission (“XRT”) technology, installed in 2017 to identify and preserve large, high-value diamonds. The stone was recovered from the processing of EM/PK(S) kimberlite, the dominant ore type that Lucara will continue to target during the first years of the Company’s underground mining operations.

This discovery underscores Karowe’s reputation as a world-class asset and reaffirms Lucara’s position as a leading producer of large, exceptional diamonds. This latest recovery joins an impressive roster of other significant finds from the mine, including the 1,758 carat Sewelô and the 1,109 carat Lesedi La Rona.

William Lamb, President and CEO of Lucara, commented on this historic discovery: “We are ecstatic about the recovery of this extraordinary 2,492 carat diamond. This find not only showcases the remarkable potential of our Karowe Mine, but also upholds our strategic investment in cutting-edge XRT technology. The ability to recover such a massive, high-quality stone intact demonstrates the effectiveness of our approach to diamond recovery and our commitment to maximizing value for our shareholders and stakeholders.”

Mr. Lamb added, “This discovery reinforces Karowe’s position as a truly world-class diamond mine and highlights the continued success of our operational and underground development strategy.”

Botswana’s diamond industry delivers wide-ranging socio-economic benefits to the country that extend well beyond the mining sector. Its influence supports national development by funding critical areas such as education and healthcare.

This discovery symbolizes Botswana’s continued ascent as a global leader in diamond production. It represents not only the unparalleled wealth found in Botswana’s soil, but also the remarkable progress the nation has made in developing its diamond industry for the benefit of its citizens.

This news release has been reviewed and approved by Dr. Lauren Freeman, PhD. Pr. Sci. Nat., Vice-President, Mineral Resources of the Company and a “Qualified Person” for the purposes of National Instrument 43-101.

On behalf of the Board,

William Lamb

Namibia bemoans popularity of lab-grown diamonds on global market

Namibia is one of Africa’s top five diamond exporters, right behind Angola, Botswana, and South Africa. In 2022, the country exported more than $940 million worth of diamonds.

The world’s demand for natural diamonds has bounced back from a slump during the COVID-19 pandemic, with Namibia’s largest marine dining company, Debmarine, reporting a sales increase of 83% in 2022 from the previous year.

Still, Debmarine CEO Willy Mertens is worried about competition from synthetic diamonds, sector of the business that could cost many Namibians their jobs.

Though trained jewelers can tell the difference between lab-grown and natural diamonds, there’s nothing obvious to distinguish lab-grown diamonds from natural ones.

The Modern Mining publication recently said that in 2022, lab-grown diamond jewelry surpassed 10% of the market of global jewelry sales for the first time. The publication said artificial diamond sales are forecast to continue growing at an annual double-digit percentage rate in coming years.

Namibia, where workers extracted 2.1 million carats in diamonds in 2022, is embarking on a campaign to tout natural diamonds as environmentally sound and holding greater value for the money.

“We’ve seen in the past couple of years that lab-grown diamonds, or synthetics as you call them, have sort of infiltrated the natural diamond market,” said Mertens. ” … people were first marketing them as real diamonds and we’ve done a lot of work around trying to differentiate them.”

One of the challenges of marketing Namibian natural diamonds is the environmental impact that diamonds have on the landscape.

Mertens said Debmarine invests a significant amount of its profits into environmental rehabilitation and restoration of landscapes and the seabed damaged by mining.

“The restoration of the seabed actually happens naturally as the waves move,” Mertens said. “So what we are doing is that we are monitoring that, and what we do is we mine out a specific area and we leave an area next to it vacant, and over time we monitor how the area where we have recovered diamonds looks like compared to the one that was not touched and we’ve seen that it takes about three to 10 years maximum for that to completely restore. By completely restoring, mean about 70% of the organisms have returned to that place. On the land, it is sand that we are moving and what we do now is that we are using that same sand to keep the sea walls in tact.”

Mertens recently paid a courtesy call on Namibian President Nangolo Mbumba, to introduce the De Beers global ambassador for natural diamonds, Hollywood actor Lupita Nyong’o, and talk to the president about challenges facing Namibia’s diamond industry.

De Beers Natural Diamonds Global Ambassador Lupita Nyong’o, left, Namibia President Nangolo Mbumba, center, and Debmarine CEO Willy Mertens in Windhoek, Namibia, July 19, 2024. (Vitalio Angula/VOA)
De Beers Natural Diamonds Global Ambassador Lupita Nyong’o, left, Namibia President Nangolo Mbumba, center, and Debmarine CEO Willy Mertens in Windhoek, Namibia, July 19, 2024. (Vitalio Angula/VOA)
President Mbumba lamented a proposal for the Kimberley process — the process meant to screen out so-called “conflict diamonds” from entering the international market — to begin certifying all diamonds in Antwerp, Belgium.

The Group of Seven largest economies said that is an effort to prevent Russian diamonds from being sold abroad.

Mbumba said the measure would hurt African diamond producers.

“Recently, the decision was made by the G7 countries to route all rough and polished diamonds destined for G7 countries via Belgium,” said Mbumba. “This decision poses a serious risk and threat to our economies, especially the economies of Angola, Botswana and Namibia by increasing the cost as well as curtailing freedom of trade for our countries’ products.”

Namibia’s president said he and his counterparts from Angola and Botswana have written a letter to the G7 to ask them to halt their plans.

Source: voanews

Petra defers another diamond tender amid weak demand

Petra Diamonds has once again postponed the sale of roughs, holding on to the diamonds from its South African operations that would have been offered during the August/September event of the year, amid low demand.

The tender of diamonds from Petra’s Williamson mine in Tanzania will proceed as planned, the company said. It noted that this decision aimed to “support steps taken by major producers to restrict supply during this period of weaker demand.”

Rough diamond parcels from the miner’s South African operations, originally earmarked for sale as part of the first tender of fiscal year 2025, are now planned to be offered in the second tender, expected to close mid-October 2024.

Petra will sell diamonds from its Williamson mine in Tanzania during August/September as planned.

Petra’s South African producing operations include the Cullinan and Finsch mines.

“Our expectation is that supply discipline, together with the expected seasonally stronger demand as we head towards the festive season, will provide some pricing support later in the calendar year,” chief executive Richard Duffy said in the statement.

Petra had differed in June the majority of what would have been its sixth sale for its 2024 fiscal year to the August/September offering, or tender one of fiscal 2025.

The company said recent steps taken to improve its financial position have provided it with the ability to adjust the timing of its tenders based on market conditions.

Source: mining.com

Fancy Color Diamond Prices: First Drop in Almost Four Years

Fancy yellow diamond — Fancy yellow cushion cut diamond

The Index tracking fancy color diamond prices fell during the last quarter, for the first time in almost four years.

The Fancy Color Diamond Index, which monitors pricing data for of all sizes and intensities of fancy color diamonds, fell by 0.7 per cent during Q2 2024, according to an update published yesterday (30 July) by the Fancy Color Research Foundation (FCRF).

The last recorded fall was back in Q3 2020 – in the depths of the Covid crisis – when the Index also fell by 0.7 per cent. That came after two quarters when sales were too slow for the FCRF to produce figures at all.

The trend over the last year or so has been of slower growth. The Index was up 1.3 per cent in Q1 2023, followed by +0.5 per cent (Q2); +0.4 per cent (Q3); +0.1 per cent (Q4) and +0.1 per cent (Q1 2024).

The New York-based FCRF played down the Q2 dip, describing it as “a minor fluctuation when compared to broader market movements”.

It said in a statement: “This stability is particularly evident relative to the sharper declines in the white diamond market and the Dow Jones index, which fell by 3.6 per cent and 1.7 per cent respectively during the same period.

Yellow diamonds (all sizes, all intensities) suffered the biggest drop, down 1.7 per cent. Pinks and blues were both down 0.3 per cent.

The FCRF said its Index had enjoyed an overall increase of 211 per cent since it began compiling data in 2005. During that time it said the price of yellow diamonds had risen by 56 per cent, pinks by 398 per cent and blues by 248 per cent.

Source: Idex

Botswana’s diamond market suffers major blow as sales drop by 49% in first half of 2024

Anglo American cut its diamond production by 19% in the first six months of the year.

According to Botswana’s central bank data, sales of rough diamonds at Debswana Diamond Company fell by 49.2%, amounting to $1.29 billion compared to $2.54 billion in the same period last year.

In local currency, sales of rough diamonds decreased by 47.3% to 17.555 billion pula compared to the same period last year.

This decline in sales is a major blow to the South African nation, which derives 30%-40% of its revenue, 75% of its foreign exchange earnings, and a third of its national output from sales of rough diamonds.

The report highlighted the downturn in the global diamond market as the primary reason for this sharp decline.

In response to the weak consumer demand, Anglo American cut its diamond production by 19% in the first six months of the year.

The report highlighted the downturn in the global diamond market as the primary reason for this sharp decline.

Botswana derives 30%-40% of its revenue, 75% of its foreign exchange earnings, and a third of its national output from sales of rough diamonds.

The Debswana Diamond Company is a joint venture between the government of Botswana and Anglo American Plc’s De Beers. Anglo American Plc’s De Beers sells 75% of its output to De Beers, while the balance is taken up by the state-owned Okavango Diamond Company.

Despite the current economic challenges, Botswana and De Beers signed a ten-year diamond sales agreement in June.

This deal will gradually see the share of Debswana’s output sold by the state-owned company increase from 25% to 30% before it goes up to 40% in five years and eventually 50% by the end of the new contract.

According to the key points in the agreement, this strategic move aims to boost Botswana’s revenue from its diamond resources.

Source: africa.businessinsider

Lucapa recovers 176 carat diamond at Lulo mine in Angola

176 carat rough diamond at Lulo mine in Angola

Lucapa Diamond announced Monday the recovery of the fifth +100 carat diamond found this year, a 176 carat Type IIa gem diamond from the Lulo alluvial mine in Angola.

The 176 carat diamond is the 45th +100 carat stone to be recovered from Lulo and the eighth largest, since alluvial operations began in 2015, the company said.

In 2021, Lucapa announced a 35% increase in the resource carats at Lulo, and the mine’s in-situ resource now sits at 135,900 carats at a modelled average diamond value of $1,440/carat.

176 carat diamond recovered from Lulo mine in July. Image from Lucapa.

The continual recovery of these and other large, high value diamonds has been a major source of revenue for Lulo over the years – in December 2023 Lucapa fetched $17 million for four diamonds recovered from Lulo – as well as being a major informant to the kimberlite exploration program.

Lucapa continues to hunt for the source of these large gems via the kimberlite exploration program which is currently bulk sampling kimberlitesin close proximity to the mining blocks where the 176 carat diamond was recovered.

“The recovery of this 176 carat diamond is yet more confirmation of the massive potential of the kimberlite province where we are focussing our exploration efforts to find the source(s) of these magnificent gems. As can be seen from the image below, the diamond has not travelled far as it still displays sharp, angular edges,” Lucapa CEO Nick Selby said in a news release.

The firm has a 40% stake in Lulo, which hosts the world’s highest dollar-per-carat alluvial diamonds. The rest is held by Angola’s national diamond company (Endiama) and Rosas & Petalas, a private entity.

Source: mining.com

Lucapa concludes special tender worth $12m

Lucapa Diamond Company has sold six diamonds recovered from the Lulo mine, in Angola, in a special tender for $12.4-million.

The diamonds totalled 447 ct and consisted of five white Type IIa diamonds, as well as a pink diamond.

The average price per carat was about $27 700.

MD and CEO Nick Selby deems the tender result pleasing. “Our alluvial project, in Angola, continues to deliver fantastic diamonds that are always in demand through all market cycles and achieve very competitive values.”

Source: miningweekly.com

Another Hefty Drop for India’s Diamond Exports

India’s exports of polished diamonds suffered another hefty drop in June, down 26 per cent year-on-year to $1.02bn.

Foreign sales in May were down by almost 15 per cent to $1.47bn, according to new figures from the GJEPC (Gem and Jewellery Export Promotion Council).

Polished diamond exports have fallen every month this year, down 20 per cent in January, 28 per cent in February, 27 per cent in March and 17 per cent in April.

Gross imports of rough diamonds for April to June dropped by 15 per cent by value to $3.39bn and 6 per cent by volume.

Overall exports of all gems and jewelry declined by 15 per cent in June to $1.9bn.

Source: Idex

Huge Budget Boost for India’s Diamond Industry

*Nirmala Sitharaman finance minister of india in a press confrence .*

India’s diamond industry welcomed a raft of measures announced in today’s budget (23 July) which will encourage direct diamond sales from foreign mining companies and reduce tax on key raw materials.

Finance Minister Nirmala (pictured) said safe harbor rates would be introduced, providing fixed and favorable tax rates for rough purchases in the country’s SNZs (Special Notified Zones).

Safe harbor streamlines the taxation process and eliminates unexpected liabilities for foreign suppliers.

Sitharaman also announced significant tax reductions on gold and silver to 6 per cent (from 15 per cent and 10 per cent) and on platinum to 6.4 per cent (from 12.5 per cent) and the exemption of diamond sales from a 2 per cent equalization levy aimed at promoting sustainability.

“India is a world leader in the diamond cutting and polishing industry, which employs a large number of skilled workers,” Sitharaman said in her Budget speech.

“To further promote the development of this sector, we would provide for safe harbor rates for foreign mining companies selling raw diamonds in the country.”

“I want to applaud and congratulate the Central Government for their three-point game changing decisions for the gems and jewellery industry,” said Vipul Shah, chairman of GJEPC (Gem and Jewellery Export Promotion Council).

“The reduction of customs duty on gold and silver, exclusion of diamond sector from 2 per cent equalisation level and simplifying taxation rules in Special Notified Zones (SNZ) for rough diamonds will provide a leadership position to the Indian gems and jewellery industry.”

Source: Idex