ASX-listed Lucapa Diamond Company has fully repaid all interest-bearing loans that it borrowed from gold exploration and mining company Equigold and the Industrial Development Corporation of South Africa (IDC).
Lucapa has repaid the final instalment of $1.3-million in principal and interest on the original $15-million Equigold debt, which was raised in 2018.
In addition, Lucapa subsidiary Mothae Diamonds recently made its final interest payment of R7.3-million to the IDC, with the IDC loan now also fully repaid.
Lucapa is now interest-bearing debt free, having repaid about A$30-million in debt and interest over an 18-month period
The company said in a July 4 statement that it would seek to have all securities with respect to those loans released.
Lucapa owns the Lulo mine, in Angola, and the Mothae mine, in Lesotho, and is developing the Merlin project, in Australia. It also explores for diamonds in Australia, Angola, Botswana and Lesotho.
Botswana has reached an eleventh-hour deal with diamond giant De Beers after months of tense negotiations that saw the continent’s top producer threatening to cut ties with the storied company.
The Botswana government and Anglo-American, the majority owner of De Beers, have reached an “agreement in principle”, the two sides said in a statement issued late Friday.
The agreement provides for a new 10-year agreement to sell the rough diamonds produced by Debswana — a joint venture equally owned by the government and De Beers — and a 25-year extension of its mining licenses.
The agreement also gives Botswana an increased 30 percent of diamond production for sale via the state-owned Okavango Diamond Company, progressively increasing to 50 percent in the final year of the contract, De Beers said in a separate statement on Saturday.
No value was given for the agreement.
The previous 2011 sale agreement between the southern African country, one of the continent’s richest, and the world’s largest diamond company by value, was extended exceptionally until June 30, 2023, due to the coronavirus pandemic.
Under terms negotiated by the two sides in 2011, De Beers received 90 percent of the rough diamonds mined, while Botswana had 10 percent to sell itself.
In 2020, Botswana’s share was hiked to 25 percent.
President Mokgweetsi Masisi had threatened to cut ties with the company if the latest talks proved unfavourable for his country.
“If we don’t achieve a win-win situation each party will have to pack its bags and go,” he said in February.
The country turned up the heat the following month by announcing it would soon conclude an agreement to take a 24 percent stake in the Belgian diamond manufacturer HB Antwerp.
Last year, De Beers obtained about 70 percent of its rough diamonds from Botswana.
Diamond mining accounts for a third of the landlocked country’s GDP.
The US Department of the Treasury has issued sanctions against four companies and an individual in the gold and diamond industries that have provided funding to Russian military organization Wagner Group.
The Central African Republic (CAR), United Arab Emirates (UAE) and Russia-based entities have “engaged in illicit gold dealings” to help Wagner “sustain and expand” its army in Ukraine and Africa, the government office said Tuesday.
“Treasury’s sanctions disrupt key actors in the Wagner Group’s financial network and international structure,” explained Brian Nelson, under secretary of the Treasury for Terrorism and Financial Intelligence. “The Wagner Group funds its brutal operations in part by exploiting natural resources in countries like CAR and Mali.”
The targets include:
Midas Ressources, which holds the rights to the Ndassima gold mine in CAR, and Diamville, a gold and diamond purchasing company that participated in a gold scheme and the shipment of diamonds mined in the African country to help fund Wagner activities. Dubai-based industrial goods distributor Industrial Resources General Trading, which provided support to Wagner leader Yevgeniy Prigozhin by purchasing the diamonds sold by Diamville in exchange for cash to support the military group. Limited Liability Company DM (OOO DM), a Russia-based firm accused of participating in a gold-selling scheme with Diamville. Andrey Ivanov, an executive in the Wagner Group who facilitated weapons deals and mining operations with the government of Mali. The announcement follows Wagner’s attempted rebellion against the Russian government last week. Prigozhin called off the mutiny and went into exile in Belarus.
The sanctions are the latest round against the Wagner Group, which the US has labeled a “significant transnational criminal organization.” Australia, Canada, Japan, the UK and the European Union have also sanctioned the military entity.
JOHANNESBURG- A junior diamond mining company has recovered a spectacular pink diamond from the banks of the Middle Orange River.
The diamond, named Protea Pink, is a fancy pink, 29.52 ct type II diamond, with unusual depth of colour and exceptional clarity. Its colour is reminiscent of the pink hues found in South Africa’s national flower, the protea.
This diamond was most likely derived from the 90-million-year-old Lesotho kimberlites and made a remarkable journey down the Orange river to be trapped in an ancient river terrace, approximately 500 km from its source, South African Diamond Producers Organisation (Sadpo) vice-chairperson and geologist Lyndon de Meillon stated in a release to Mining Weekly.
Sadpo, an organisation that aims to streamline the diamond diggers industry, is headed by CEO Yamkela Makupula, who is a director of Pioneer Tender House, where Protea Pink will be sold on tender in South Africa during the week of 26/30 June. The sale will end on Friday 30 June.
The Middle Orange River, which is known as the area with the highest average value per carat in the world, also has the lowest grade in carat per hundred tonnes of any area actively mined, De Meillon explained.
The modern-day alluvial diamond miner utilises no chemicals in the recovery process and rehabilitation of the mining areas has been proven to improve the carrying capacity of the land, De Meillon added.
Unemployment rates in the area are alarmingly high, exceeding 70%, with mining operations, such as this one by a junior miner, playing a crucial role in supporting the local economy by providing job opportunities and stimulating economic growth.
The revenue generated from diamond mining can contribute to infrastructure development, education, healthcare, and other essential services in the community.
The volume of trade exchange between UAE and Israel, in the diamond trade, increased to $1.75 billion in 2022, an annual increase of 163%, according to the Dubai Multi Commodities Center (DMCC), a leading global free zone and government body concerned with the trade of goods and projects.
The ties between the diamond industries of both countries developed rapidly after ‘Abraham Accords’. On September 17, 2020, just two days after the signing of ‘Abraham Accords’ in Washington and the establishment of diplomatic relations between Israel and UAE, Israel Diamond Exchange (IDE) and Dubai Diamond Exchange (DDE) signed a cooperation agreement.
In 2022, the Israel Diamond Exchange opened an office in Dubai, and the Dubai Diamond Exchange opened in Ramat Gan, Israel’s diamond capital.
In May 2020, Israel and UAE signed Comprehensive Economic Partnership Agreement, eliminating tariffs on diamonds and precious stones.
Ahmed Bin Sulayem, executive chairman and CEO of DMCC, said: “Over the past two years we have witnessed strong growth in Israeli companies setting up in our free zone, as they take full advantage of growing their businesses globally and the vertical integration we bring to the category.”
“As the trade relationship grows and matures between Israel and the UAE, we look forward to welcoming more business from Israel in diamonds as well as other key sectors,” he added.
The UAE has witnessed soaring growth in the sector over the past three years, with the rough diamond trade rising by 72% and polished by 50%. Bin Sulayem noted this success, adding that Israel has played a significant part in its accomplishment.
“Dubai, via our Dubai Diamond Exchange, has become the global leader in the diamond trade. This is reflected in the diamond trade numbers with Israel, with $ 1.75 billion traded last year,” he said.
Dubai provides Tel Aviv with greater opportunities for trading in the global market due to its position as a prominent regional trading center, and its proximity to Asian centers for the production of precious stones, in addition to the preference given to Israeli occupation companies to trade without additional costs or taxes, as stipulated in the free trade agreement between UAE and Israel.
The DDE, which was established in 2002 under the umbrella of the Dubai Multi Commodities Centre (DMCC), has over 1,100 licensed companies. It now handles some $25bn in total trade, double that of Israel’s IDE.
De Beers’ sales value fell this month as global rough demand weakened and the miner reduced prices of its larger stones.
Proceeds dropped 32% year on year to $450 million at 2023’s fifth sales cycle from $657 million in the equivalent period a year earlier, De Beers reported Wednesday. Sales declined 6% compared with the $479 million that the fourth cycle brought in. The total included the June sight as well as auction sales.
“Following the JCK [Las Vegas] show, and with ongoing global macroeconomic challenges continuing to impact end-client sentiment, the diamond industry remains cautious heading into summer,” said De Beers CEO Al Cook. “Reflecting this, we saw demand for De Beers rough diamonds during the fifth sales cycle of the year slightly softer than in the fourth cycle.”
De Beers lowered prices at the sight by 5% to 10% mainly in 2-carat categories and larger, as well as for some 1- to 1.5-carat items, market insiders said. It also extended its buyback program, which allows sightholders to sell goods back to the miner following the purchase.
This reflected weakness in the rough that produces polished above 0.30 carats, and especially the stones that yield 1-carat finished diamonds. These sizes are especially weak in the US market amid economic uncertainty and a lull in engagements, dealers explained. Rough under 0.75 carats has seen a mild recovery as Indian manufacturers look to fill their factories with low-cost material.
The Group of Seven (G7) meeting that took place in Japan in mid-May proved to be an anticlimax for the diamond trade.
The industry had expected a major announcement to come from the meeting relating to required declarations on the origin of diamonds imported to those countries — an additional measure that would help prevent polished diamonds sourced from Russian-origin rough entering their markets.
While a clear guideline did not emerge, the member nations — Canada, France, Germany, Italy, Japan, the United Kingdom and the United States — pledged to work toward such measures.
“In order to reduce the revenues that Russia extracts from the export of diamonds, we will continue to restrict the trade in and use of diamonds mined, processed or produced in Russia,” the group said after the meeting.
As it stands, the US and the UK have implemented bans on diamonds sourced directly from Russia. However, the sanctions don’t account for “substantial transformation,” and consequently the manufacturing center is regarded as the source. For example, diamonds polished in Belgium, India, Israel or the United Arab Emirates (UAE) from Russian rough can technically be imported to the US.
Implementing such detailed declarations is proving more complicated than originally thought. Creating such mechanisms will take time, as Feriel Zerouki, the De Beers executive who heads the World Diamond Council (WDC), said in a recent panel discussion at the JCK Las Vegas show in early June. These measures would apply to the entire industry, seemingly requiring a disclosure of origin for all diamonds at customs.
“How do we support the [sanctions] without paralyzing the industry and making it very cumbersome for natural diamonds to enter the G7 countries,” Zerouki challenged the Las Vegas audience.
Setting standards It’s a sensitive point for an already heavily audited industry, and for companies in each segment of the supply chain that would bear the added expense of verifying such information.
It’s also worth noting that the G7 cannot enact such requirements as a bloc. It will be left to each country to implement its own import rules. That said, there does at least seem to be an effort among those countries to apply some consistency in their systems. It was an open secret that members of various governments and industry bodies met in Las Vegas during the show to advance these discussions, which presumably covered a wide spectrum of industry-related issues.
Central to the talks must surely be the practicality of such declarations. What mechanisms are available to the industry that would facilitate traceability? And who verifies that these initiatives meet the required standards? And on what are those standards based?
The trade has at its disposal industry structures as well as company programs that tackle the challenge of traceability and source verification — although arguably nothing is foolproof.
Diamond dealers from Surat are routinely flying to Sierra Leone, buying uncertified rough diamonds from artisanal mines and smuggling them home, according to an investigation by The Blunt Times.
Many of the stones are reportedly stolen by workers and sold for dollars at “throwaway” prices.
One diamond dealer, who said he was a frequent visitor, told the Surat-based news website: “We have a network of artisanal workers in Sierra Leone from whom we purchase diamonds.
“They (artisanal workers) steal the diamonds from mines and they have to sell it within a day or two. Since we pay them in dollars, it is a quite a big deal for the poor workers.”
Another dealer told how he hired a team of four or five security guards on his diamond-buying trips.
None of the diamonds has a Kimberley Process (KP) certificate.
According to the latest figures from KP’s Certification Scheme, Sierra Leone exported 641,469 carats in 2020, with a value of $119m.
Mountain Province Diamonds reports positive drilling results at several targets at the Gahcho Kué diamond mine 300 km east-northeast of Yellowknife, N.W.T. It has intersected 40 metres of kimberlite near the Tuzo resource and multiple intersections – as long as 287 metres of kimberlite – at the Hearne Deep and Hearne Northwest Extension targets.
The Gahcho Kué mine is a joint venture of Mountain Province (49%) and the operator De Beers Canada (51%).
The longest intersection, 287 metres, was drilled at the Hearne Northwest Extension. This target was identified late in 2021 when a 25-metre kimberlite exposure was discovered during routine mining operations in the Hearne pit. Drilling in 2022 pointed toward the presence of a significant, previously unknown kimberlite could exist. During the 2023 drill program, 10 of the 11 holes collared within and outside the Hearne pit intersected kimberlite.
“Combined with our earlier results, we now have 21 drillholes that define the extension below the final pit and to the northwest. We are actively engaged with our operating partner De Beers to look at ways to recover this deeper kimberlite by underground mining,” said Mountain Province president and CEO Mark Wall.
Following the success at the Hearne Northwest Extension, Mountain Province said drilling moved to the Tuzo kimberlite in the hope of finding a similar extension. A new kimberlite about 40 metres northeast of the modeled Tuzo resource was drilled. The intersection returned 40 metres of kimberlite.
The just completed Sotheby’s Magnificent Jewels sale in New York is the first auction to sell two items for more than $30 million.
The first is the “Estrela de Fura,” a 55.22-carat Mozambique ruby that sold for $34.8 million ($630,288 per carat), establishing a world record price for a ruby and any colored gemstone sold at auction. It is also the largest ruby to be sold at auction. Its pre-auction estimate was more than $30 million.
The finished ruby was cut and polished from a 101-carat rough discovered by Fura Gems, a colored gemstone mining and marketing company based in Dubai. It was unearthed at its ruby mine in Montepeuz, Mozambique, in July 2022. The company named the rough gem, Estrela de Fura (Star of Fura in Portuguese). Even in its rough, untouched state, the ruby “was considered by experts as an exceptional treasure of nature for its fluorescence, outstanding clarity and vivid red hue, known as ‘pigeon’s blood’ — a color traditionally associated only with Burmese rubies,” Sotheby’s said in a previous statement.
It’s rare for a mining company to cut and polish the gem and then sell it at auction. The usual route of recently found colored gems is to sell it to a company as a rough where they would cut and polish the gem, then it would sell it privately or at auction. However, Dev Shetty, founder and CEO of Fura Gems, chose to not only go on the auction route on his own, but to embark on a worldwide tour of the rare gem, promoting not only this stone, but rubies from Mozambique as equal to rubies from Burma, which has historically been considered the main source of the most sought-after rubies.
Quig Bruning, head of Sotheby’s Jewelry America, previously said the Estrela de Fura may signal a change of this perception.
“It is undoubtedly positioned to become the standard bearer for African rubies – and gemstones in general, bringing global awareness to their ability to be on par with, and even outshine, those from Burma,” Bruning said in a statement.
