Lucara Expects to Sell More Diamonds for More Money in 2023

Canadian miner Lucara Diamond has announced that it expects to sell between $200 million to $230 million worth of diamonds from its Karowe mine in Botswana in 2023 – an increase over its previous forecast of $185-$215 million in 2022, IDEX Online reports.

Lucara also said it expects to sell 385,000 to 415,000 carats (up from 300,000 to 340,000 carats in 2022) and expects to recover 395,000 to 425,000 carats (an increase from 300,000 to 340,000 carats).

Recently, Lucara announced that it has extended its sales agreement with HB Trading to sell +10.8-carat rough diamonds from Karowe for another ten years. Lucara and HB partnered in 2020 to sell Karowe’s large, high-value diamonds “that have historically accounted for about 60% to 70% of its annual revenues,” according to a report by Rough & Polished.

472 Carat Diamond Lucara
Rough Diamond from Lucara

Source: israelidiamond

303ct. Golden Canary Sets Sales Soaring at Sotheby’s

303ct. Golden Canary

The 303.10-carat Golden Canary fetched $12.4 million at Sotheby’s Magnificent Jewels in New York on Wednesday, becoming the third most valuable yellow diamond ever sold at auction, the company reported.

The pear-shaped, fancy-deep-brownish-yellow stone is the world’s largest known internally flawless diamond. It is also the largest flawless or internally flawless diamond graded by the Gemological Institute of America (GIA), Sotheby’s said Thursday.  The auction house offered the piece without reserve, but predicted it would bring in more than $15 million.

The diamond was initially discovered in the Democratic Republic of Congo (DRC) in the early 1980s. Originally called the Incomparable Diamond, the stone was recut from its previous 407-carat shield shape to deepen the color and brighten the hue.

“The Golden Canary captivated me from the moment I saw it — with its monumental size, golden hue and impeccable clarity — it is truly an extraordinary diamond with immense presence,” said Quig Bruning, head of jewelry for the Americas at Sotheby’s.

Source: Diamonds.net

Israel’s exports of polished diamond up since start of this year

Rough Diamonds
Rough Diamonds

Israel’s exports of polished diamond have shown positive growth over the past 11 months, a statement issued by Israeli Economic Ministry revealed yesterday.

According to the statement, the net rough diamond imports reached about $1.68 billion, recording an eight per cent decline compared to the same period last year.

Meanwhile, the net rough diamond exports reached $1.46 billion during the same period, recording a 9.5 per cent decline compared to the same period last year.

Last month, net Israeli exports of rough diamonds to the UAE reached about $10.7 million – about 14 per cent of the total Israeli exports of rough diamonds in November.

Israel imported rough diamond worth $25.7 million from the UAE – 21 per cent of the total Israeli imports of rough diamond.

Israel recently began exporting diamonds to Bahrain and the Ministry of Economy and Industry expects this market to grow next year.

The global diamond industry has faced massive interruptions as a result of Russia’s war on Ukraine. US sanctions on Russia, the world’s third largest diamond exporter, includes diamond trade.

Source: middleeastmonitor

Zimbabwe Diamond Sector to Grow to $1 Billion by 2024

Zimbabwe Diamond mine

Winston Chitando, Zimbabwe’s mines and mining development minister, said in an interview with the Sunday Mail newspaper quoted by IDEX Online that the country’s diamond sector will grow to $1 billion by the end of 2023.

Chitando said that Murowa Diamonds and the ZCDC (Zimbabwe Consolidated Diamond Company) “were expanding their operations and would help bring total output to 7 million carats, up from 2 million in 2018.”

Chitando said: “Other countries produce quite a lot, but their production is mature . . . whereas Zimbabwe has a fairly rapidly growing industry. It is probably experiencing the biggest growth in the diamond industry in the world.”

In another report in Rough & Polished, Zimbabwe’s Finance minister Mthuli Ncube is quoted as saying that the mining sector is expected to grow by 10% this year, and that the government had issued 20 exploration prospecting orders (EPOs) to several companies this year. He also said that the mining sector “is expected to grow by 10.4% in 2023.”

Source: israelidiamond

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 Production to Slump as Diavik Dries Up

Diavik diamond mine
The Diavik diamond mine

Rio Tinto has forecast a sharp drop in rough-diamond output for next year as the Diavik mine edges closer to depletion.

The company expects to produce between 3 million and 3.8 million carats from the Canadian deposit in 2023, it reported at an investor seminar Wednesday. That compares with a plan of 4.5 million to 5 million carats for this year.

The decrease is a result of the exhaustion of rough supply from some of Diavik’s major mining areas, a Rio Tinto spokesperson told Rapaport News. The mine, which employs 1,100 workers, is set to close in 2025.

“We’ve completed mining at the A21 pipe, which was the latest pipe opened in 2018,” the spokesperson explained. “We’re finishing surface mining, and also one of the underground parts of the mine is done, so this is part of the plan changes. There are four areas we are mining at the moment, and next year there will be two.”

Diavik, of which Rio Tinto is the sole owner, is currently the miner’s only operational diamond site. The company’s Argyle deposit, known for its fancy-pink diamonds, closed in November 2020. Meanwhile, an exploration partnership with Star Diamond is on hold as Rio Tinto considers an exit from the project.

Source: Diamonds.net

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