Petra Diamonds said on Monday it had halted operations at its Williamson mine in Tanzania after a tailings storage facility burst, causing flooding in nearby areas.
The company, which also operates three mines in South Africa, said the eastern wall of Williamson’s tailing dam was “breached”, but said in an email that the pit was not affected.
Petra noted that there were no injuries or fatalities confirmed so far, adding that the government and mine emergency response teams had been mobilized to the site.
“While no injuries have been reported, any impact on the local communities would be viewed as a material negative from an ESG standpoint,” Berenberg bank analysts said in a note.
The diamond miner has worked hard to clean up its image in Tanzania. Last year, it achieved a £4.3 million (about $4.9m) settlement with claimants alleging widespread human rights abuses, including beatings and detentions, at Williamson —the country’s biggest diamond mine.
Petra, which has repeatedly denied the involvement of its own employees in the incidents, admitted that “regrettable” incidents took place at the mine in the past.
The clashes between locals and police resulted in “the loss of life, injury and the mistreatment of illegal diggers” within the mining license, it said last year.
Watchdog World Mine Tailings Failures (WMTF) said Williamson’s is third diamond tailings failure in a year and the 19th of this decade (2015-2024).
The organization’s executive director, Lindsay Newland Bowker, noted that in terms of mineral production, this decade is already the worst in terms of catastrophic tailings failures in recorded history.
Lucara Diamond Corp.’s sales dropped in the third quarter as the company supplied fewer large and expensive stones from its lucrative Karowe mine in Botswana.
Revenue fell 31% year on year to $49.9 million, while net profit slumped 86% to $1.8 million, Lucara reported Wednesday.
Sales of rough from Karowe declined 36% to $46.5 million, with volume down 15% at 99,301 carats and the average price falling 43% to $337 per carat. The remaining revenue came from sales of third-party goods on Lucara’s Clara online platform.
Management blamed a decrease in the number of high-value diamonds the company sold to HB Antwerp through the pair’s supply agreement. The Belgian manufacturer is contracted to buy all Karowe rough of 10.8 carats or more, with Lucara receiving a proportion of the final polished proceeds.
In the third quarter a year earlier, Lucara sold four pink diamonds and two white, type IIa stones — weighing 393.5 and 257.5 carats — to HB. As a result of the unfavorable comparison, revenue from the agreement plummeted 46% to $27.1 million.
“Despite the overall decrease in revenue recognized in [the third quarter], diamond-market fundamentals continued to support healthy prices as steady demand and some inventory shortages were reported,” Lucara said. Fluctuation in the availability of 10.8-carat production is expected, it added.
Output from Karowe slid 19% year on year to 78,879 carats for the quarter.
France’s finance ministry is auctioning off customs contraband in an “extraordinary sale” featuring platinum bars seized en route to the UK, designer handbags, valuable historic coins, several collections of uncut diamonds and 2,016 bottles of vodka.
The 350 lots – valued collectively at about €1m – also include a Volkswagen Golf stopped at France’s border with Spain and found to contain 480kg of cannabis resin.
A white gold Rolex set with 40 rubies, with a catalogue estimate of €15,000.
More than 1,200 potential buyers have signed up to take part in the auction, which will be held in the finance ministry at Bercy in Paris.
The 14 platinum bars weighing 1kg each and stamped “Crédit Suisse” were reportedly discovered by French customs officials in the baggage of two people travelling to the UK who claimed they were working for a Paris business. Each ingot is for sale at a starting price of €22,000.
One of the 14 platinum bars up for auction.
Seized items detailed in the catalogue also include gold sovereigns bearing the heads of the British monarchs Elizabeth II, Victoria, Edward VII and George V, as well as several gold “Napoléons”.
Among the luxury goods up for auction are Louis Vuitton, Chanel, Fendi and Valentino handbags and several expensive watches including a white gold Rolex set with 40 rubies – catalogue estimate €15,000 – as well as perfumes and a pair of Bottega Veneta shoes seized at Nice airport. The uncut diamonds, being sold in several lots – one of which is listed as totalling 197.95 carats – were seized at Paris airports.
Certain items will be sold only to professional buyers for security or legal reasons, including three and a half pallets of Grey Goose vodka bottles, listed with a starting price of €10,000.
Three and a half pallets of Grey Goose vodka bottles are listed with a starting price of €10,000
The finance ministry said the sale reflected “the diversity of objects seized by customs officers”.
“The customs service battles daily against all illegal traffic that threatens our territory and our society in order to protect citizens and the environment,” it added.
De Beers will offer widened concessions to purchasers of larger rough diamonds at its upcoming sight as trading has slowed amid difficult market conditions.
The miner will increase its “buyback” allowance to 20% for 1-carat goods and up at the sale, which begins later this month, industry insiders told Rapaport News this week.
Buybacks are a mechanism enabling sightholders to sell 10% of stones back to De Beers after making their purchases. They are popular among clients when markets are weak, as customers can handpick the least profitable items and hope the miner will offer a good price. For De Beers, they provide a way of promoting sales without reducing prices.
Lockdowns in China and global economic uncertainty have spooked sections of the industry, with De Beers’ move reflecting a split in the market. Companies that usually buy 1-carat and larger rough destined for the Far East have reduced their purchasing, while top US and European brands continue to buy melee, supporting the trade in rough under 0.75 carats, dealers explained. In that context, the miner will maintain its usual 10% buyback allowance for rough under 1 carat.
“People actually did buy a lot [of the larger items] up till June [or] July this year, when they thought China would slowly start opening up again,” a market participant said. “That clearly hasn’t happened, and there are people now sitting on those goods.”
Sightholders are expecting De Beers’ next sales cycle — its ninth of the year — to bring the miner around $400 million after buybacks, compared with $500 million in September. The sight will run from October 31 to November 4. The December sight is also likely to be relatively small as southern African cutting factories shut for the holidays.
The October sight will take place amid the Diwali season in India, for which manufacturers are expected to implement extended production pauses of up to three weeks because of the sluggish market. Many of them have been trying to slash their inventories ahead of the holiday.
“De Beers is not too eager to reduce prices at this stage. I think they want to wait till early 2023 for that,” a sightholder predicted.
De Beers has released its sales schedule for next year, with the miner holding its usual 10 sights across the 12-month period.
The miner sells most of its rough to sightholders through a contract system under which clients make certain purchasing commitments in return for consistent supply. In April 2021, the miner introduced a new sales agreement offering more bespoke supply for manufacturers, dealers and retailers. Alrosa, which operates a similar system, has not yet published a 2023 schedule on its website.
The dates for De Beers’ sights in 2023 are as follows:
• Sight 1: January 16 to 20 • Sight 2: February 20 to 24 • Sight 3: March 27 to 31 • Sight 4: May 2 to 5 • Sight 5: June 5 to 9 • Sight 6: July 10 to 14 • Sight 7: August 14 to 18 • Sight 8: September 18 to 22 • Sight 9: October 23 to 27 • Sight 10: December 4 to 8
Sotheby’s will sell a group of eight fancy-blue diamonds from De Beers across its global Magnificent Jewels auctions, expecting the set to bring in more than $70 million.
The stones are cut in various shapes and range from 1.22 to 11.29 carats, with a total weight of 32.09 carats, Sotheby’s said last week. The polished originates from five rough blues that De Beers and Switzerland-based manufacturer Diacore purchased jointly from Petra Diamonds in November 2020. Diacore cut and polished those stones into eight diamonds over the past two years.
Sotheby’s will offer three stones from the eight-piece group, called The De Beers Exceptional Blue Collection, this year. The first, a cushion brilliant-cut, 5.53-carat, fancy-vivid blue diamond will go under the hammer at the Magnificent Jewels and Noble Jewels sale in Geneva on November 9, with a high estimate of $15 million. Meanwhile, the December 7 Magnificent Jewels sale in New York will feature a cushion brilliant-cut, 3.24-carat, fancy-vivid blue, internally flawless diamond estimated at up to $8 million. That jewel will be joined by a cushion-cut, 2.08-carat, fancy-intense-blue diamond with an upper price tag of $1.5 million.
“I have remained in awe of the De Beers Exceptional Blue Collection since the first moments I set eyes on it,” said Olivier Wagner, head of Sotheby’s Magnificent Jewels auctions in Geneva. “The market for colored diamonds and precious gemstones has never been stronger. [The diamonds] will, I am sure, captivate all collectors of exceptional gemstones.”
Sotheby’s will sell the remaining five diamonds at its spring 2023 Magnificent Jewels auctions. Those include a step-cut, 11.29-carat, fancy-vivid-blue estimated at up to $50 million; a step-cut, 4.13-carat, fancy-intense-blue expected to go for up to $3.5 million; and a cushion brilliant-cut, 3.10-carat, fancy-vivid-blue diamond with a high price of $5 million.
In April, Sotheby’s sold another De Beers blue diamond: a step-cut, 15.10-carat, fancy-vivid-blue, internally flawless stone that went for $57.5 million in Hong Kong.
The kimberlite cluster is located around 110km north-east of a Finsch diamond mine.
Diamond mining company Botswana Diamonds has secured a five-year prospecting licence on ground containing the Reivilo cluster of kimberlites in Barkley West, South Africa.
The kimberlite cluster is located around 110km north-east of a Finsch diamond mine owned by Petra Diamonds.
According to an exploration by the previous licence holder, the area holds a delineated a cluster of three kimberlite pipes, all within a 250m radius.
The prospecting licence is effective until June 2027.
Botswana Diamonds chairman John Teeling said: “When the ground became recently available, we immediately applied for the area.
“Botswana Diamonds management have long been aware of the diamond potential of this ground, and so we are delighted to have finally been awarded this high-profile exploration ground and look forward to updating shareholders in the near future on developments.”
Botswana Diamonds plans to finalise its exploration programme after carrying out a review of all the available data on the Reivilo cluster.
The firm said in a statement: “Samples of the drilling core produced G10 and eclogitic garnets, which are the optimal indicators for diamondiferous kimberlites.”
In July this year, Botswana Diamonds purchased an additional stake in the prospective Maibwe joint venture (JV) in Botswana.
The company holds a 51.7% stake in Siseko Minerals, which increased its stake in the JV from 29% to 50%.
At the time, Botswana Diamonds said it was involved in three companies focused on diamond exploration in Botswana, as well as owned assets in South Africa.
Maibwe currently holds 11 prospecting licences in Botswana’s area of the Kalahari Desert, which include several kimberlite pipes.
In October 2019, Botswana Diamonds received a mining permit for gravels and unprocessed stockpiles around the Marsfontein mine in South Africa via its associate, Vutomi Mining.
oronto-listed Mountain Province Diamonds will next week put on sale an “exceptional” coloured rough diamond, which it recovered from the Gahcho Kué mine, in Canada’s Northwest Territories.
The diamond, a 151.60 t octahedron of exceptional clarity, will be offered for sale alongside a selection of more than 90 individual special rough diamonds recovered from the company’s Canadian diamond mine.
The upcoming sale represents the biggest offering of +10.8 ct gem quality diamonds offered by the company to date.
“This important diamond represents a clear example of the Gahcho Kué mine’s ability to consistently recover high-quality gems of exceptionally large size. These gems are highly coveted by collectors around the globe not only for their beauty but increasingly, for their Canadian origin,” commented VP for diamond marketing ReidMackie.
The second largest internally flawless fancy vivid pink diamond to ever appear at auction was unveiled Wednesday in London by Sotheby’s. The 11.15-carat Williamson Pink Star will be sold in a single-lot auction in Hong Kong on October 5. Its estimate is $21 million.
The auction house says it has the potential to set a new per carat price record for a fancy vivid pink diamond.
“We do have the confidence that it will find a great collector and have the interest of multiple parties,” Wenhao Yu, chairman of Jewellery and Watches at Sotheby’s Asia, told Forbes on Tuesday. “It has the potential to reach a very strong price.”
He adds, “This diamond truly checks all the boxes. It has the best qualities you can have in a pink diamond.”
The current price per carat auction record for a fancy vivid pink diamond is $2,656,909 for the 18.96-carat Winston Pink Legacy, sold in 2018 by Christie’s Geneva. The largest internally flawless, fancy vivid pink diamond offered at auction is the 59.60-carat CTF Pink Star. It was sold by Sotheby’s Hong Kong in 2017 for $71.2 million, a world record for any gem or jewel sold at auction.
Yu compares the Williamson Pink Star to an exceptional work of art.
“We timed this lot to be offered between Sotheby’s modern and contemporary art auctions. That’s because instead of offering just another important diamond, we view this diamond as a work of art from mother earth and a wonder of nature,” Yu says. “It’s comparable to a Monet or a Picasso and is even more rare.”
The Williamson Pink Star is the second largest internally flawless fancy vivid pink diamond
The Williamson mine is one of the oldest operating diamond mines in the world, famous for producing what is described as “bubblegum” pink diamonds, according to the auction house. One of the best-known diamonds from the mine is the 23.6-carat Williamson Pink Diamond fashioned into a brooch by Cartier and owned by Queen Elizabeth II.
“We wanted to relate the important provenance of the Williamson mine when naming the diamond,” Yu says. “The unique saturated pink color is one of the important qualities of diamonds from this mine. It is an honor for us that after so many decades another important pink diamond comes from the Williamson mine and we can offer it at auction.”
The cushion-shaped diamond was crafted from a 32.32-carat rough diamond by Diacore, a diamond manufacturer that specializes in crafting rare, exceptional fancy-colored diamonds. The company purchased the gem in late 2021 for $13.8 million. Yu says crafting the diamond is just as important as discovering it, and Diacore is one of the few companies in the world capable of cutting and polishing such an important gem.
The Williamson Pink Star is mounted in an 18k gold ring flanked by trapeze
“Not every rough can yield a diamond of this high quality so we should also give credit to Diacore,” he says. “They really made cutting and polishing into an art. They are very skilled and experienced with the best technology and a lot of courage. It’s rare to have a vivid pink color. It’s rarer when it’s over 10 carats and even more rare if it’s internally flawless. It’s luck to find this kind of diamond that was formed underground for millions of years, and it takes a great amount of art and creativity to fashion it into a gorgeous stone with so many exceptional qualities.”
Pink diamonds are among the rarest colors to occur naturally in diamonds. Of all the diamonds submitted to the Gemological Institute of America (which analyzes and grades diamonds), fewer than 3% are classified as colored diamonds, and fewer than 5% of those are considered predominantly pink.
The Argyle Mine in Australia, before it was retired in 2020 after exhausting its supply of gem-quality diamonds, produced more than 90% of the world’s pink diamonds. The absence of pink diamonds from this mine makes important pink diamonds like the one being offered even more rare, Yu says.
“Pink diamonds are still growing in demand in the market, and this now makes the Williamson Pink Star even more sought after,” he says.
The diamond is being presented in an 18k gold ring flanked by trapeze-cut diamonds and embellished with brilliant-cut diamonds.
London is the first stop where the diamond will be viewed by the public. It will then travel to Dubai, Singapore and Taipei before the final viewing and sale in Hong Kong.
Diamond is a naturally occurring rare mineral that is composed of pure elemental carbon. Due to the extremely rigid arrangement of the carbon atoms in a crystal structure, diamonds possess the maximum hardness and thermal productivity than any natural material. Diamonds are also in high demand as gemstones and as luxurious commodities. Despite having a reputation for being used in jewelry like rings and necklaces, 80% of mined diamonds are used for research and industrial purposes because of their toughness and shine.
The hardest substance known to man, diamonds, are frequently used to drill, grind, or cut other difficult materials. Initially, its reserves were only discovered in Africa and provided to the rest of the globe, but today, exploration and production of diamonds have also begun on other continents. Currently, Russia produces 30% of the world’s diamonds, and approximately 39.12 million carats of diamonds were produced in Russia in 2021, making it by far the greatest diamond-mining nation in the world. With a production of 22.9 and 17.6 million carats of diamonds, respectively, Botswana and Canada are placed in second and third place, followed by the Democratic Republic of the Congo and South Africa.
1. Russia (39.12 Million Carats)
Kimberlite pipe Mir. indigenous diamond deposits in Yakutia, Northern Russia.
Russia presently leads the world in diamond output after it began mining in 1947. Regarding volume, it is also the top exporter of rough diamonds worldwide. ALROSA is Russia’s largest diamond miner, maintaining a virtual monopoly over the sector and producing over 90% of the nation’s annual output. Russia houses some of the world’s greatest mines and diamond reserves (some of which have not yet been explored), including Udachny, Grib, and Aikhal. It was revealed in 2014 that Alrosa intends to expand the Udachny mine into a 5 million carat per year project, making it the most significant diamond mine in both Russia and the entire globe. Alrosa first used Udachny in 1971, and during the following 43 years, it has helped the company make over $80 billion. Alrosa should be able to keep its position as the world’s biggest diamond producer by volume for the foreseeable future due to Udachny’s figures.
2. Botswana (22.88 Million Carats)
Workers walking in top of the tailings of kimberlite at a diamond mine in Botswana.
A significant diamond mine was found in 1966, the year Botswana declared its independence from Britain, in a rural region called Orapa, about 250 miles from the nation’s capital of Gaborone. De Beers, the firm that discovered the mine, was and still is the world’s largest supplier of “rough stones.” The two most significant of the seven mines in the country are Orapa and Jwaneng. Despite ranking second in terms of volume, Botswana tops the list of the world’s top producers of diamonds. Botswana, which was one of the world’s 25 poorest nations, has achieved upper-middle income status due to the revenue from diamonds. The nation is currently vying for a more significant position in the sector as the No. 1 player Russia faces condemnation from around the world for its invasion of Ukraine.
3. Canada (17.62 Million Carats)
Aerial view of Ekati Diamond Mine in Northwest Territories, Canada. Image Credit: Jason Pineau via Wikimedia Commons
The Northwest Territories, which were once used as hunting grounds, are now used mainly for large-scale resource extraction, including diamond mining. Diamonds weren’t found by non-natives until 1991, specifically by two geologists named Chuck Fipke and Stewart Blusson. The first diamond mine in the Northwest Territories, known as Ekati, opened in 1998 because of this finding. The Arctic Canadian Diamond Company presently oversees the operation of Ekati, which is a responsible steward of the environment and a significant source of high-quality employment and money for the area. Most of Canada’s diamonds are mined in the Northwest Territories, which comprise about 40% of the total geographical area. There are currently four working diamond mines in Canada, three in the NWT – the Ekati, Diavik, and Gahcho Kué mines – and the Renard diamond mine in Quebec.
4. Democratic Republic Of The Congo (14.09 Million Carats)
The Democratic Republic of the Congo is the country that turned South Africa’s diamond industry profitable. Miniere de Bakwange (MIBA), a joint venture between the Belgian business Sibeka and the DRC government, which controls 80% of the company, is the only commercial diamond producer in the DRC. Although ongoing political unrest has caused production to fall recently, the DRC has the capacity to produce more diamonds. Only a tiny area has been examined, and mining has only ever been done on a small basis. Most of the DRC’s output is mined by the informal sector rather than mining companies. De Beers markets about one-third of Sibeka’s production and holds a 20% stake in the company.
5. South Africa (9.72 Million Carats)
Historic Kimberley Diamond mine in Kimberley, South Africa.
Almost all the modern diamond trade originates in South Africa. The earliest diamonds found in South Africa were alluvial diamonds. Diamonds were initially discovered in yellow earth in 1869, and then later below ground in hard rock called blue ground near and in what would become Kimberley in the Northern Cape, the diamond center of the world. Later, the blue rock was given the mining town’s name: kimberlite. One of the country’s biggest diamond deposits is located in the South African province of Gauteng. As the government and miners continue to find significant diamond resources and pipelines, the demand for diamonds in South Africa is anticipated to rise.
One can therefore expect the global diamond industry to keep expanding and displaying a bright future as long as economic prosperity continues to improve and as long as there are still diamond reserves that have not yet been mined.
