Petra Diamonds shares drop

Petra Diamond mine

More trouble for diamond miner Petra Diamonds  yesterday after it warned it is heading into financial trouble with its lenders.

Petra has borrowed heavily to expand its operations in the country. The company is now likely to breach its banking covenants at the end of the year, because of the row with the government in Tanzania. As well as strikes at three of its mines in South Africa.

Petra diamonds is known for the size and quality of the diamonds produced at the famous Cullinan mine outside of Pretoria in South Africa.

 

Petra Diamonds suspends operations at its Tanzania mine

Williamson Diamond Mine Tanzania

The Tanzanian governments confrontational approach to miners operating in the country including  Petra Diamonds, has led to Petra suspending operations at its mine.

The Tanzanian government seized a shipment of rough diamonds belonging to Petra. They also question and held a number of staff in the latest assault on the African country’s mining sector.

This includes the concentrate exports ban and the non repayment of value added tax.

Tanzania confiscates diamonds from British mining company

Tanzania confiscates diamonds

The Tanzanian government has announced the seizure of diamonds worth an estimated $29.5 million after accusing British company Petra Diamonds, of undervaluing the worth of the gems.

Minister of Finance Philip Mpango stated on Sunday that he had “nationalized” these diamonds, extracted from the Williamson Diamonds mine, 75% owned by Petra Diamonds and 25% by the Tanzanian government.

The diamonds were seized on 31 August at the Dar es Salaam International Airport while being exported to Belgium.

According to the Tanzanian authorities, Williamson Diamonds’ documents indicated an estimated cargo of $14.7 million, while the actual value of diamonds, deliberately undervalued, was $29.5 million.

“Williamson Diamonds documents give these diamonds a value of $14.7 million (pre-market) while the actual value is $29.5 million,” the Finance Ministry said in a release Saturday.

On Thursday, two former senior mining officials, quoted in parliamentary reports on alleged embezzlement linked to diamond mining and trading, resigned on the orders of President John Magufuli.

Former Minister of Mines, George Simbachawene, who until his resignation was Minister of State for Local Government, and the former head of the National Mining Company (STAMICO), Edwin Ngonyani, Deputy Minister of Public Works and Transport until Thursday.

The two ministers resigned at the orders of President Magufuli, who had just received the findings of two parliamentary reports that put them in question.

President Magufuli demanded that all current government officials be blamed for this case and leave without waiting for them to be dismissed.

Nicknamed “Tingatinga” (bulldozer in Swahili), President Magufuli has marked the spirits since taking office at the end of 2015 by being inflexible in the fight against corruption.

He hired a tug of war with the large foreign mining companies operating in Tanzania, after a parliamentary report accused them of dumping their production, resulting in a tens of billions of dollars in taxes and royalties since 1998.

But Mr. Magufuli’s unconscious and abrupt style also earned him the title of autocrat and populist by his detractors, while freedom of expression is increasingly reduced in the country.

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How do I know that my diamond certificate or diamond grading report is from an independent laboratory ?

Ask the jeweller if the diamond certificate comes from an independent diamond laboratory or if it produced by a diamond merchant or retailer, then do your research. Make sure the certificate is issued by the DCLA or another highly respected diamond grading laboratory; DCLA is the only diamond grading laboratory worldwide to offer a full-replacement Diamond Grading Guarantee.

De Beers cuts rough diamond prices and sight

De Beers which produces thirty percent of world rough diamonds has cut prices by 10 percent for the sight.

This comes after two reductions in its annual production output by 15 percent failed to slow slump in prices of rough.

Rough diamond prices have dropped 14 percent in some categories and are in their fifth consecutive quarterly loss, which is the longest in a decade.

De Beers cut the size of the sight to $250 million and reduced the prices by 9 percent, according to sight holders.  

De Beers has also contributed tens of millions to a jewellery advertising campaign. Its advertising campaign will promote diamond jewellery in the U.S. and to Chinese consumers.

Gemmological Institute of America seven week graduate diamond diploma

Gemmological Institute of America

The GIA a gemmological organisation will be conducting a seven week graduate diamond diploma from January 8.

The programme combines theory lessons with practical hands on learning and will be held in Jaipur.

Students will learn how to grade in accordance with the GIA’s 4Cs colour, cut, clarity and carat weight of diamond in the D-Z colour range.  

As well as how to grade diamonds and detect simulants and treatments like fracture filled diamonds using gemmological equipment.

The course will be taught by instructors from the Mumbai campus.

$2.1 billion in diamonds from Russia for Indian companies

Twelve Indian diamond companies including Kiran Gems, Asian Star and Rosy Blue India, have signed three year contracts with ALROSA at the World Diamond Conference,

Each of the companies signed separate contracts with ALROSA and will buy rough diamonds worth USD 2.1 billion or about USD 700 million per year for a period of three years. This will assist the companies save considerable amount of commissions.

THE INTERNATIONAL INSTITUTE OF DIAMOND GRADING

The International Institute of Diamond Grading & Research is part of the
De Beers group of companies.

Based in Antwerp and run by the world’s top diamond experts, the International Institute of Diamond Grading & Research benefits from proprietary equipment of the De Beers group of companies that enables the most precise grading and assessment for both rough and polished diamonds

Read more

Where’s the best place to buy loose diamonds?

General consensus is to definitely buy online.

Simple reason is online sales don’t have the expense of retail location, security and personnel.

All of these add to the cost of the diamond, but not the value.

But before you do buy, ask these questions.

Do all online diamond sellers ship free of charge?

Can you view before buying, if you wish? 

Is the diamond certified by an IDC or equally highly recognised Laboratory?

Is the diamonds quality guaranteed?  

Only at the DCLA Diamond Exchange the answer is yes to all these questions.

The Diamonds are certified by the best laboratories in the world and are Fully Guaranteed.

The shipping is Free across Australia.

And most important, a trained diamond grader will personally show you all the diamonds attributes, as well as explain all the details so that you understand and make an educated decision before you buy.

This is all done as a free service complements of the DCLA laboratory which is the only qualified and state of the art IDC Laboratory in Australia.